By Abbas Nazil
Microsoft has reportedly paused new carbon removal credit purchases, a move that could significantly affect the rapidly growing global carbon removal market, according to multiple media reports citing sources familiar with the matter.
The technology giant, which has been the dominant buyer in the sector in recent years, has not explicitly confirmed or denied the reports but stated that it regularly reviews its carbon removal portfolio in line with market conditions and its long-term climate strategy.
Microsoft’s carbon removal program is a key component of its broader environmental commitment to become carbon negative by 2030, meaning it aims to remove more carbon from the atmosphere than it emits, and to eliminate its historical emissions by 2050.
The company has played a central role in scaling the carbon removal industry, accounting for roughly 90 percent of global carbon dioxide removal purchases in 2025, according to industry tracking data from CDR.fyi.
In 2025 alone, Microsoft signed agreements covering approximately 45 million metric tonnes of carbon dioxide removal, representing a sharp increase compared to previous years and involving deals with more than 20 project developers across nature-based and engineered solutions.
The company has also engaged in long-term contracts and early-stage financing arrangements designed to help develop new carbon removal technologies and expand supply capacity in the voluntary carbon market.
Despite the reported pause in new purchases, Microsoft’s existing multi-year agreements remain active and are expected to continue directing billions of dollars toward carbon removal projects over the coming years.
Industry stakeholders have acknowledged Microsoft’s outsized influence in shaping market standards, pricing structures, and quality expectations, with many developers crediting the company for helping establish credibility in a still-evolving sector.
However, the reported suspension of new procurement has raised concerns among carbon removal project developers who rely heavily on large-scale corporate buyers to secure financing and scale operations.
Analysts note that the carbon removal market, while still growing, remains highly dependent on a limited number of major purchasers, making it vulnerable to shifts in procurement strategies by dominant buyers.
Some industry participants have also suggested that the pause may reflect broader market reassessments as companies evaluate costs, supply constraints, and the long-term integration of carbon removal into corporate net-zero strategies.
Microsoft’s earlier purchasing activity included a record volume of contracts in 2025, spanning diverse geographies and technologies such as bioenergy with carbon capture, direct air capture, and forestry-based solutions.
Even with the reported slowdown in new deals, observers expect continued market expansion as new corporate buyers, financial institutions, and governments increasingly enter the carbon removal space.
Experts argue that while Microsoft’s role has been pivotal in accelerating demand and establishing early market infrastructure, the long-term sustainability of the sector will depend on broader participation beyond a single dominant buyer.
