Microsoft Enters Long-Term Carbon Credit Deal with India's Panna Project

Deal News | May 09, 2025 | Orrick

Microsoft Enters Long-Term Carbon Credit Deal with India's Panna Project

Microsoft has entered into a significant 30-year contract with Climate Impact Partners to purchase 1.5 million tonnes of verified carbon credits from the Panna afforestation project in India. Represented by Orrick, this is Microsoft's largest ever long-term carbon removal project in the Asia-Pacific region. The Panna initiative involves planting up to 11.6 million native trees across 20,000 hectares in Madhya Pradesh, India, aimed at combating climate change while boosting economic and environmental outcomes for local communities. This collaboration embodies Microsoft's commitment to nature-based solutions as part of its sustainability strategy and highlights its role in bolstering the global carbon credit market.

Sectors

  • Technology
  • Environmental Services
  • Financial Services

Geography

  • India – The Panna afforestation project located in Madhya Pradesh, India, is central to the article, highlighting important developments in the carbon credit and sustainability sector within the country.
  • United States – Microsoft, a major participant in the article, is based in the United States and represents the country's technological and climate change leadership.
  • Global – Climate Impact Partners works on projects in 56 countries, mirroring the global nature of carbon credit markets and sustainability efforts.

Industry

  • Technology – Microsoft is a global leader in the technology sector, and its involvement in the carbon credits project underscores the role technology companies are playing in sustainability initiatives.
  • Environmental Services – The article focuses on carbon removal and afforestation projects, making it part of the environmental services industry, which deals with solutions aimed at preserving and regenerating ecosystems.
  • Financial Services – Involvement of Climate Impact Partners and Terra Natural Capital highlights the role of financial services in providing innovative carbon market solutions and institutional capital for ecological projects.

Financials

  • 1.5 million tonnes of carbon credits – The total amount of carbon removal credits Microsoft is set to purchase from the Panna project.

Participants

NameRoleTypeDescription
MicrosoftBuyerCompanyA leading technology company focused on sustainability through its purchase of carbon credits.
Climate Impact PartnersVendorCompanyA firm specializing in carbon market solutions, partnering with Microsoft to deliver high-quality carbon credits.
OrrickLegal AdvisorCompanyThe law firm representing Microsoft in this carbon credits agreement.
Terra Natural CapitalFinancial AdvisorCompanyProvides innovative financing for projects like Panna's, focusing on large-scale carbon credit and natural capital assets.