Microsoft has caused a stir in the ESG world with news that the tech giant may be pausing its purchases of carbon credits. Initial reporting from Bloomberg and Heatmap broke the news that Microsoft is allegedly pausing purchases and revisiting it’s sustainability and carbon strategies. Microsoft’s CSO has gone on record denying that the company is ending it’s carbon credit purchases and stating that any change in the volume of purchases reflect “adjustments” and not an abandonment of it’s carbon goals. ESG Dive reports:
“‘Our decarbonization approach combines reduction, removal, and efficiency, and carbon removal is one piece of that equation,’ Nakagawa said in her statement. ‘At times we may adjust the pace or volume of our carbon removal procurement as we continue to refine our approach toward sustainability goals. Any adjustments we make are part of our disciplined approach — not a change in ambition.'”
If Microsoft is pausing its credit purchases, that could have major impacts on the carbon credit market. Presently, Microsoft is estimated to account for up to 87% of carbon removal purchases. The company’s emissions continue to be driven higher by AI data centers and carbon credit purchases are at the center to it’s mitigation strategy. If Microsoft were to pause its purchasing that could send shocks through the carbon removal market cratering prices. Right now all we have are rumors, we’ll have to wait and see how the situation develops.
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