Microsoft expands carbon removal deal with UNDO in $5m pact

 

By Abbas Nazil

Microsoft has deepened its commitment to achieving net-zero emissions by 2030 through a new multi-million-dollar partnership with carbon removal company UNDO, marking one of the largest enhanced rock weathering (ERW) purchases in the world.

The tech giant has agreed to buy 28,900 tonnes of permanent CO₂ removals backed by a groundbreaking financing structure from Inlandsis, a Canadian climate fund managed by Fondaction Asset Management.

Valued at over $5 million, the deal is Microsoft’s third and largest purchase from UNDO, following earlier agreements in 2023 and 2024 that brought the company’s total CO₂ removals to nearly 49,000 tonnes.

The new agreement is supported by an innovative debt financing model developed by Inlandsis, which ties capital deployment directly to verified project milestones, ensuring that funding aligns with measurable carbon removal outcomes.

UNDO CEO Jim Mann described the partnership as a milestone for the carbon industry, emphasizing that financial innovation and scientific rigor can make large-scale carbon removal both credible and investable.

Under the project, UNDO will spread 90,000 tonnes of crushed wollastonite rock across 30,000 acres of Canadian farmland, using GPS-tracked equipment and laboratory-verified sampling to ensure transparency and accuracy in measurement.

Microsoft’s Director of Carbon Removal, Phillip Goodman, said the deal reflects growing confidence in ERW as a scalable, durable solution to climate change, ensuring every purchased tonne represents verified and lasting carbon removal.

The project is insured by CFC, a specialist provider in carbon markets, to safeguard investors if project milestones are missed—an approach increasingly seen as essential for building trust in carbon finance.

Experts say the partnership among Microsoft, UNDO, and Inlandsis provides a replicable model for future climate investments, blending science-based verification with performance-linked finance and transparency.

The deal signals a maturing carbon removal market, where buyers are shifting from experimental projects to measurable, long-term solutions capable of driving real-world climate impact.