Published

8 months ago

October 23, 2025

Alice Rush

Microsoft (NASDAQ: MSFT) has taken another major step toward its 2030 carbon-negative goal by expanding its partnership with carbon removal company UNDO. The tech giant has agreed to purchase 28,900 tonnes of permanent CO₂ removals, backed by an innovative financing structure from Inlandsis, a Canadian climate fund managed by Fondaction Asset Management.

The deal—estimated to be worth over $5 million based on current Enhanced Rock Weathering (ERW) credit prices—marks Microsoft’s third and largest purchase from UNDO to date.

It follows earlier commitments in 2023 and 2024, bringing the company’s total removals with UNDO to nearly 49,000 tonnes.

carbon removal ERW — Data Source: Allied Offsets Q1 2025 Carbon Dioxide Removal (CDR) Market Update

Financing the Next Frontier of Carbon Removal

To keep global warming below 1.5°C, the world must remove billions of tonnes of CO₂ from the atmosphere by mid-century. But achieving that scale requires more than promising technology. It demands financing structures that can fund large-scale deployment and reward verified results.

That’s where Inlandsis plays a crucial role. The fund has developed a first-of-its-kind debt financing model to fully support UNDO’s latest ERW project. The structure ensures that capital is deployed in sync with verified progress, effectively tying funding to real-world delivery.

UNDO’s CEO Jim Mann described the model as a turning point for the industry:

“Innovative financing is the catalyst for unlocking gigatonne-scale carbon removal. The support of Inlandsis shows how financial backers can help transform carbon removal into a genuine asset class, one that is scalable, tradable, and investable. By combining financial innovation, strategic partnerships and bleeding-edge science, UNDO is accelerating deployment and delivering both climate and agricultural benefits in Ontario and beyond.”

By blending financial innovation, strategic partnerships, and rigorous science, UNDO is proving that enhanced rock weathering can be both a credible carbon removal method and an investable business model.

Additionally, the company’s focus on transparent MRV (measurement, reporting, and verification) ensures that every credit sold is backed by evidence and durability.

Microsoft’s Evidence-Backed Commitment

Microsoft’s partnership with UNDO has evolved gradually but strategically—each stage built on verified outcomes and increasing scientific confidence.

2023: Microsoft made its first-ever ERW purchase with a 5,000-tonne agreement.
2024: The company followed up with 15,000 tonnes and additional funding to strengthen scientific measurement and monitoring.
2025: This latest deal for 28,900 tonnes represents the company’s largest ERW investment yet.

The steady growth signals Microsoft’s confidence in the integrity and scalability of enhanced rock weathering. It also reflects a shift in the carbon removal market, where buyers are moving from pilot projects to multi-year, performance-based partnerships.

Phillip Goodman, Director of Microsoft’s Carbon Removal Portfolio, underscored the importance of science-led delivery,

“Enhanced rock weathering is a promising pathway to gigatonne-scale carbon removal. UNDO’s commitment to scientific rigour gives us confidence in both the durability of these credits and their role in helping Microsoft achieve its goal of being carbon negative by 2030.”

For Microsoft, this approach ensures that every tonne purchased represents verified, durable removal—not speculative offsets. The company’s portfolio strategy emphasizes transparency, permanence, and continuous improvement.

READ MORE:

Backing UNDO: Insurance-Enabled, Bankable Carbon Solutions

For Inlandsis, the UNDO deal marks two significant milestones: it is the fund’s first ERW investment and its first Canadian project under its second climate fund. These achievements underscore how carbon finance is evolving—shifting from traditional offset models to evidence-backed removal financing.

David Moffat, Managing Director at Inlandsis, said the project highlights a new direction for climate investment:

“This strategic and innovative deal strengthens the growing relationship between Microsoft and UNDO while advancing the critical fight against climate change. It also reflects our commitment to financing credible, scalable carbon solutions in Canada and beyond.”

Adding another layer of security, the deal is underwritten by CFC, a specialized insurance provider for the carbon markets. CFC’s involvement de-risks the transaction by ensuring compensation if project milestones aren’t met—an emerging best practice in carbon finance.

Such insurance-backed financing is becoming a cornerstone for scaling carbon removal. It gives both investors and lenders the confidence to fund long-term projects, accelerating deployment and making climate solutions bankable.

A Replicable Model for the Carbon Market

This financing structure is designed to meet the needs of all players in the carbon ecosystem:

Buyers like Microsoft get verified, durable credits with transparent evidence.
Lenders gain confidence through milestone-based repayment tied to credit issuance.
Farmers benefit from predictable, low-disruption operations that align with agricultural cycles.

By ensuring that capital flows only after verified results, the model turns projected tonnes into measured, issued removals. It’s a practical, transparent framework that can be replicated across regions and scales.

UNDO’s growing list of partners—Microsoft, Barclays, British Airways, and McLaren—illustrates strong corporate demand for high-integrity removals. Each new deal builds capacity for UNDO’s operations, allowing it to scale faster while maintaining scientific rigor.

Ground-Level Action: Every Rock, Every Acre, Every Record

Under the new agreement, UNDO will deploy 90,000 tonnes of crushed wollastonite, a calcium silicate rock, across 30,000 acres of Canadian farmland. The operation is designed to fit seamlessly within normal farming practices, using existing machinery and scheduled around planting and harvest.

The delivery process is transparent and data-rich:

Equipment is calibrated and GPS-tracked.
Every load of rock is logged and verified.
Soil and porewater samples are collected at multiple intervals and analyzed in accredited labs.
Each sample follows a strict chain of custody from field to lab to final data report.

These steps ensure that every credit issued represents real, measured carbon removal. UNDO’s system links field operations with verified outcomes, providing partners with full traceability from quarry to credit.

UNDO’s ERW process

Science-Led, Evidence-Based Removals

Enhanced rock weathering accelerates a natural process where CO₂ reacts with silicate minerals in rock, forming stable carbonates that lock away carbon for thousands of years.

UNDO’s science-first approach ensures that every aspect—from sampling design to lab analysis—is statistically sound and auditable. Sampling plans are written in advance for accuracy, include control plots, and specify precise locations and timing for collection.

Once samples are analyzed, results go through multiple quality control checks, and data are tied to GPS coordinates and timestamps. Life-cycle emissions from quarrying, transportation, and spreading are subtracted, and uncertainty margins are conservatively applied before credits are issued.

Issuance happens only after independent verification, meaning each credit represents net carbon removed, not just projected outcomes. This evidence-led methodology helps ensure transparency and credibility, both essential for scaling trust in the carbon market.

A Blueprint for Scalable Carbon Removal

This partnership between Microsoft, UNDO, and Inlandsis represents a powerful new model for how the carbon removal sector can grow. It combines long-term purchasing commitments, performance-linked finance, scientific validation, and insurance-backed assurance into one scalable framework.

The collaboration also offers a clear path for other companies and investors: pair proven carbon removal science with structured, delivery-based finance to accelerate real climate impact.

As UNDO expands operations, its combination of practical field deployment, scientific transparency, and financial accountability will serve as a blueprint for scaling carbon removal across geographies.

The next phase is focused on steady execution—planning rock supply, coordinating farm deployments, and sharing verified progress through public reporting. Each season adds data, strengthens methodologies, and builds confidence in the durability of ERW as a global climate tool.

The Surge in Verified Removals Signals Market Maturity

Microsoft’s (MSFT stock) $5 million partnership with UNDO is a signal of market maturity. It shows how science-based removal, innovative finance, and transparent delivery can work together to build a credible, investable carbon market.

Allied Offsets data showed that in the first quarter of 2025, around 780,000 CDR credits were contracted — a surge of 122% compared to the same period in 2024.

Additionally, 16 million credits were sold in the first six months of 2025 – marking it the strongest start to a year so far. The momentum is fueled by major buyers like Microsoft, aiming to be carbon negative by 2030. Also rise in biomass-based removal methods that are reshaping corporate offset strategies is contributing to the growth.

Market Highlights

carbon removal Microsoft — Source: Allied offsets

As the world races to reach net zero, this deal stands out as a real-world example of progress: a partnership that delivers measured, permanent carbon removal, financed and verified with integrity.

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The post Microsoft (MSFT) Buys 28,900 Tonnes of CO₂ Removal from UNDO in Landmark Multi-Million-Dollar Deal appeared first on Carbon Credits.

Carbon Footprint

The real cost of 1 tonne of CO2: Translating carbon into hectares

Published

1 week ago

May 28, 2026

Alice Rush

Every business carbon footprint report ends with a number, the amount of carbon emissions produced by the business, less the amount of carbon reduced and offset, given in tonnes of CO₂. Many of the people who sign off on that number, including those who paid for it, cannot picture what it represents on the ground. A tonne is a unit of mass. CO₂ is invisible. The link between the amount offset in the report and a real piece of restored forest somewhere in the world is almost never indicated.

Carbon Footprint

Finding Nature Based Solutions in Your Supply Chain

Published

2 weeks ago

May 20, 2026

Alice Rush

“…Protecting nature makes our business more resilient…”

Julie Brown, Chief Financial Officer, GSK, and Co-Chair, A4S CFO Leadership Network (Europe)

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For companies with land, water, food, fiber, or commodity exposure, the supply chain may be the most practical place to turn nature from a risk into an operating asset.

Your supply chain already has a nature strategy. It may be undocumented. It may live in procurement files, supplier contracts, commodity maps, and one spreadsheet nobody opens without coffee. But it exists.

If your business depends on farms, forests, water, soil, packaging, rubber, timber, fibers, minerals, or food ingredients, nature is part of your operating system. The question is whether you manage that system with intent, or discover it during a disruption, audit, or difficult board question.

That is why more companies are asking how to find Nature-Based Solutions in Your Supply Chain. Do not begin by shopping for offsets. Begin by asking where nature already affects cost, continuity, emissions, regulatory exposure, and supplier resilience.

What Nature-Based Solutions in Your Supply Chain Means

The European Commission defines nature-based solutions as approaches inspired and supported by nature that are cost-effective, deliver environmental, social, and economic benefits, and help build resilience. They should also benefit biodiversity and support ecosystem services.

In supply-chain terms, that becomes practical. Nature-based solutions in your supply chain can include agroforestry in cocoa, coffee, rubber, or palm supply chains. They can include soil health programs for food ingredients, watershed restoration near water-intensive operations, mangrove restoration linked to coastal sourcing regions, and avoided deforestation in forest-linked commodities.

The key test is business relevance. If your procurement team relies on a landscape, watershed, crop, or supplier base, that is where opportunity may sit. The best projects do not hover outside the business like a framed certificate. They plug into the system that already produces your revenue.

Why the Boardroom Should Care

For many companies, the largest climate and nature exposure sits outside direct operations. The GHG Protocol Scope 3 Standard gives companies a method to account for and report value-chain emissions across sectors. Purchased goods, land use, transport, supplier energy, and product use can make direct emissions look like the visible tip of a very large iceberg.

The Taskforce on Nature-related Financial Disclosures notes that many nature-related dependencies, impacts, risks, and opportunities arise upstream and downstream. That is why nature-based supply chain investments matter to boards. You are managing supply security, audit readiness, investor confidence, and regulatory preparedness.

For companies exposed to EU markets, this also connects to rules and expectations such as CSRD, CSDDD, EUDR, and SBTi FLAG.

Step One: Map Where You Touch Land, Water, and Living Systems

Finding Nature-Based Solutions in Your Supply Chain starts with mapping, not marketing.

Begin with procurement and Scope 3 data. Which categories carry high spend, high emissions, or high sourcing risk? Which suppliers depend on agriculture, forestry, mining, water-intensive processing, or land conversion? Which regions face water stress, heat, flood risk, soil degradation, deforestation, or biodiversity pressure?

The Science Based Targets Network uses a clear process for companies: assess, prioritize, set targets, act, and track. That sequence keeps companies from treating nature as a mood board. You identify where the business has exposure, then decide where intervention can create measurable value.

Step Two: Look for Operational Value Before Carbon Value

This is the center of CCC’s Dual-Value Model. A nature-based supply chain investment should do useful work for the business before anyone counts the carbon.

Agroforestry may improve farmer resilience, shade crops, protect soil, and reduce pressure on forests. Watershed restoration may reduce water risk for beverage, textile, or manufacturing sites. Soil health programs may improve the stability of agricultural inputs.

Carbon and sustainability value can still be created. In some cases, the project may support Scope 3 insetting. In others, it may generate verified carbon credits. Sometimes the main value may be resilience, readiness, and better supplier data.

The IPCC has found that ecosystem-based adaptation can reduce climate risks to people, biodiversity, and ecosystem services, with multiple co-benefits, while also warning that effectiveness declines as warming increases. That is a sober argument for acting early.

Step Three: Separate Insetting, Offsetting, and Resilience

Nature-based solutions in your supply chain are not automatically carbon credits. They are not automatically Scope 3 reductions either.

An insetting opportunity usually sits inside or close to your value chain. It may support Scope 3 reporting if the accounting rules, project boundaries, supplier connection, and data quality are strong enough.

An offsetting opportunity usually involves verified credits outside your value chain. High-quality credits can still play a role for residual emissions, but they should not distract from direct reductions or credible value-chain work.

A resilience opportunity may deliver business value even if you cannot claim a Scope 3 reduction immediately. That may include water security, supplier capacity, land restoration, biodiversity protection, or regulatory readiness.

Gold Standard’s Scope 3 value-chain guidance focuses on reporting emissions reductions from interventions in purchased goods and services. Verra’s Scope 3 Standard Program is being developed to certify value-chain interventions and issue units for companies’ emissions accounting. The direction is clear: stronger evidence, tighter boundaries, and more disciplined claims.

Step Four: Design for Audit-Readiness From the Beginning

Weak data is where promising nature projects go to become expensive anecdotes.

Before public claims are made, you need to know the baseline. What would have happened without the project? Who owns or manages the land? Which suppliers are involved? How will outcomes be measured? How will leakage, permanence, and double counting be addressed?

The GHG Protocol Land Sector and Removals Standard gives companies methods to quantify, report, and track land emissions, CO2 removals, and related metrics. This matters because land projects are rarely neat. Farms change practices. Suppliers shift volumes. Weather changes outcomes.

What Recent Corporate Examples Show

Recent case studies show that supply-chain nature work is becoming more serious, and more scrutinized.

Reuters has reported on insetting to reduce emissions within supply chains, including examples linked to Reckitt, Danone, Nestlé, Earthworm Foundation, and Nature-based Insights. The same article highlights familiar problems: measurement, double counting, supplier incentives, and credibility.

Reuters has also reported on companies using the Science Based Targets Network process to examine nature impacts. GSK, Holcim, and Kering were among the first companies with validated science-based targets for nature.

The Financial Times has covered the promise and difficulty of soil carbon in corporate supply chains, including a PepsiCo example in India where yields reportedly increased while greenhouse gas emissions fell. The lesson is that carbon, soil, biodiversity, farmer economics, and measurement need to be handled together.

A Practical Screening Checklist

A supply-chain nature-based solution deserves deeper review when you can answer yes to most of these questions:

Does it sit in or near a material supply-chain hotspot?
Does it address a real business risk?
Can you connect it to supplier behavior, land management, or sourcing practices?
Can the outcomes be measured?
Are the claim boundaries clear?
Does it support Scope 3 strategy, SBTi FLAG, CSRD, CSDDD, EUDR, or investor reporting needs?
Are permanence, leakage, land rights, and community issues addressed?

Build the Asset, Then Make the Claim

Finding Nature-Based Solutions in Your Supply Chain is about identifying where your business already depends on living systems, then designing interventions that make those systems more resilient, measurable, and commercially useful.

For companies with material Scope 3 exposure, the right project can support supplier resilience, emissions strategy, regulatory readiness, and credible climate communication. The wrong project can become a glossy story with a weak audit trail.

Carbon Credit Capital helps companies design nature-based carbon and sustainability assets that embed directly into corporate supply chains. Through CCC’s Dual-Value Model, you can assess where sustainability investment may support operational resilience, Scope 3 insetting eligibility, regulatory readiness, and high-quality carbon or sustainability value.

Schedule your consultation with the carbon and sustainability experts at Carbon Credit Capital to explore how nature-based supply chain investments can support your next stage of climate strategy.

Sources

Carbon Footprint

How Climate Change Is Raising the Cost of Living

Published

2 weeks ago

May 19, 2026

Alice Rush

Americans are paying more for insurance, electricity, taxes, and home repairs every year. What many people may not realize is that climate change is already one of the drivers behind those rising costs.

For many households, climate change is no longer just an environmental issue. It is becoming a cost-of-living issue. While climate impacts like melting glaciers and shrinking polar ice can feel distant from everyday life, the financial effects are already showing up in monthly budgets across the country.

Today, a larger share of household income is consumed by fixed costs such as housing, insurance, utilities, and healthcare. (3) Climate change and climate inaction are adding pressure to many of those expenses through higher disaster recovery costs, rising energy demand, infrastructure repairs, and increased insurance risk.

The goal of this article is to help connect climate change to the everyday financial realities people already experience. Regardless of where someone stands on climate policy, it is important to recognize that climate change is already increasing costs for households, businesses, and taxpayers across the United States.

More conservative estimates indicate that the average household has experienced an increase of about $400 per year from observed climate change, while less conservative estimates suggest an increase of $900.(1) Those in more disaster-prone regions of the country face disproportionate costs, with some households experiencing climate-related costs averaging $1,300 per year.(1) Another study found that climate adaptation costs driven by climate change have already consumed over 3% of personal income in the U.S. since 2015.(9) By the end of the century, housing units could spend an additional $5,600 on adaptation costs.(1)

Whether we realize it or not, Americans are already paying for climate change through higher insurance premiums, energy costs, taxes, and infrastructure repairs. These growing expenses are often referred to as climate adaptation costs.

Without meaningful climate action, these costs are expected to continue rising. Choosing not to invest in climate action is also choosing to spend more on climate adaptation.

Here are a few ways climate change is already increasing the cost of living:

Higher insurance costs from more frequent and severe storms
Higher energy use during longer and hotter summers
Higher electricity rates tied to storm recovery and grid upgrades
Higher government spending and taxpayer-funded disaster recovery costs

The real debate is not whether climate change costs money. Americans are already paying for it. The question is where we want those costs to go. Should we invest more in climate action to help reduce future climate adaptation costs, or continue paying growing recovery and adaptation expenses in everyday life?

How Climate Change Is Increasing Insurance Costs

There is one industry that closely tracks the financial impact of natural disasters: insurance. Insurance companies are focused on assessing risk, estimating damages, and collecting enough revenue to cover losses and remain financially stable.

Comparing the 20-year periods 1980–1999 and 2000–2019, climate-related disasters increased 83% globally from 3,656 events to 6,681 events. The average time between billion-dollar disasters dropped from 82 days during the 1980s to 16 days during the last 10 years, and in 2025 the average time between disasters fell to just 10 days. (6)

According to the reinsurance firm Munich Re, total economic losses from natural disasters in 2024 exceeded $320 billion globally, nearly 40% higher than the decade-long annual average. Average annual inflation-adjusted costs more than quadrupled from $22.6 billion per year in the 1980s to $102 billion per year in the 2010s. Costs increased further to an average of $153.2 billion annually during 2020–2024, representing another 50% increase over the 2010s. (6)

In the United States, billion-dollar weather and climate disasters have also increased significantly. The average number of billion-dollar disasters per year has grown from roughly three annually during the 1980s to 19 annually over the last decade. In 2023 and 2024, the U.S. recorded 28 and 27 billion-dollar disasters respectively, both setting new records. (6)

The growing impact of climate change is one reason insurance costs continue to rise. “There are two things that drive insurance loss costs, which is the frequency of events and how much they cost,” said Robert Passmore, assistant vice president of personal lines at the Property Casualty Insurers Association of America. “So, as these events become more frequent, that’s definitely going to have an impact.” (8)

After adjusting for inflation, insurance costs have steadily increased over time. From 2000 to 2020, insurance costs consistently grew faster than the Consumer Price Index due to rising rebuilding costs and weather-related losses.(3) Between 2020 and 2023 alone, the average home insurance premium increased from $75 to $360 due to climate change impacts, with disaster-prone regions experiencing especially steep increases.(1) Since 2015, homeowners in some regions affected by more extreme weather have seen home insurance costs increased by nearly 57%.(1) Some insurers have also limited or stopped offering coverage in high-risk areas.(7)

For many families, rising insurance costs are no longer occasional financial burdens. They are becoming recurring monthly expenses tied directly to growing climate risk.

How Rising Temperatures Increase Household Energy Costs

A light bulb, a pen, a calculator and some copper euro cent coins lie on top of an electricity bill

The financial impacts of climate change extend beyond insurance. Rising temperatures are also changing how much energy Americans use and how utilities plan for future electricity demand.

Between 1950 and 2010, per capita electricity use increased 10-fold, though usage has flattened or slightly declined since 2012 due to more efficient appliances and LED lighting. (3) A significant share of increased energy demand comes from cooling needs associated with higher temperatures.

Over the last 20 years, the United States has experienced increasing Cooling Degree Days (CDD) and decreasing Heating Degree Days (HDD). Nearly all counties have become warmer over the past three decades, with some areas experiencing several hundred additional cooling degree days, equivalent to roughly one additional degree of warmth on most days. (1) This trend reflects a warming climate where air conditioning demand is increasing while heating demand generally declines. (4)

As temperatures continue rising, households are expected to spend more on cooling than they save on heating. The U.S. Energy Information Administration (EIA) projects that by 2050, national Heating Degree Days will be 11% lower while Cooling Degree Days will be 28% higher than 2021 levels. Cooling demand is projected to rise 2.5 times faster than heating demand declines. (5)

These projections come from energy and infrastructure experts planning for future electricity demand and grid capacity needs. Utilities and grid operators are already preparing for higher peak summer electricity loads caused by rising temperatures. (5)

Longer and hotter summers also affect how homes and buildings are designed. Buildings constructed for past climate conditions may require upgrades such as larger air conditioning systems, stronger insulation, and improved ventilation to remain comfortable and energy efficient in the future. (10)

For many households, this means higher monthly utility bills and potentially higher long-term home improvement costs as temperatures continue to rise.

How Climate Change Affects Electricity Rates

On an inflation-adjusted basis, average U.S. residential electricity rates are slightly lower today than they were 50 years ago. (2) However, climate-related damage to utility infrastructure is creating new upward pressure on electricity costs.

Electric utilities rely heavily on above-ground poles, wires, transformers, and substations that can be damaged by hurricanes, storms, floods, and wildfires. Repairing and upgrading this infrastructure often requires substantial investment.

As a result, utilities are increasing electricity rates in response to wildfire and hurricane events to fund infrastructure repairs and future mitigation efforts. (1) The average cumulative increase in per-household electricity expenditures due to climate-related price changes is approximately $30. (1)

While this increase may appear modest today, utility costs are expected to rise further as climate-related infrastructure damage becomes more frequent and severe.

How Climate Disasters Increase Government Spending and Taxes

Extreme weather events also damage public infrastructure, including roads, schools, bridges, airports, water systems, and emergency services infrastructure. Recovery and rebuilding costs are often funded through taxpayer dollars at the federal, state, and local levels.

The average annual government cost tied to climate-related disaster recovery is estimated at nearly $142 per household. (1) States that frequently experience hurricanes, wildfires, tornadoes, or flooding can face even higher public recovery costs.

These expenses affect taxpayers whether they personally experience a disaster or not. Climate-related recovery spending can increase pressure on public budgets, emergency management systems, and infrastructure funding nationwide.

Reducing Climate Costs Through Climate Action

While this article focuses on the growing financial costs associated with climate change, the issue is not only about money for many people. It is also about recognizing our environmental impact and taking responsibility for reducing it in order to help preserve a healthy planet for future generations.

While individuals alone cannot solve climate change, collective action can help reduce future climate adaptation costs over time.

For those interested in taking action, there are three important steps:

Estimate your carbon footprint to better understand the emissions connected to your lifestyle and activities.
Create a plan to gradually reduce emissions through energy efficiency, cleaner technologies, and more sustainable choices.
Address remaining emissions by supporting verified carbon reduction projects through carbon credits.

Carbon credits are one of the most cost-effective tools available for climate action because they help fund projects that generate verified emission reductions at scale. Supporting global emission reduction efforts can help reduce the long-term impacts and costs associated with climate change.

Visit Terrapass to learn more about carbon footprints, carbon credits, and climate action solutions.

The post How Climate Change Is Raising the Cost of Living appeared first on Terrapass.