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Tesla Stock Powers Ahead: Can TSLA Balance AI, EV Growth, and Net-Zero Goals?

Tesla Inc. (NASDAQ: TSLA) remains one of the most closely watched companies in the global market. The company is known for leading in electric vehicles (EVs), artificial intelligence (AI), and clean energy. This has drawn both loyal fans and careful skeptics.

Tesla’s stock performance has been shaped by analyst upgrades, bold technological moves, and its growing role in sustainability and emissions reduction. This article looks at Tesla’s current status, recent changes, financial results, risks, and its long-term focus on sustainable innovation.

Analyst Upgrades Fuel Tesla’s 2025 Momentum

Tesla’s momentum in 2025 has been strengthened by positive analyst sentiment. Piper Sandler raised its price target from $400 to $500, keeping an “Overweight” rating. The firm pointed to Tesla’s advances in autonomous driving and robotics after reviewing progress during a research trip to China.

Analysts noted that while Chinese EV makers remain tough competitors, Tesla continues to lead in AI-driven mobility.

Another boost came from Baird analyst Ben Kallo, who upgraded Tesla to a “Buy” with a price target of $548. Kallo pointed out Tesla’s impact on “physical AI.” This area covers self-driving tech, humanoid robots, and energy storage systems. These endorsements boosted investor confidence. They show that Tesla is more than an automaker; it’s a tech company with wide-ranging applications.

Stock Market Performance and Investor Sentiment

Tesla’s stock has seen both volatility and growth in 2025. On September 22, 2025, shares closed at $433.77, up 1.8% from the prior day. Intraday trading reached $444.84, moving closer to the 52-week high of $488.54. These gains have been partly fueled by analyst upgrades and upbeat investor outlooks.

Investor sentiment was further boosted by a $1 billion stock purchase by CEO Elon Musk. This was Musk’s first open-market buy since 2020 and was widely interpreted as a sign of his confidence in Tesla’s future. Following the purchase, Tesla’s stock rose 3.6%, adding to a broader upward trend in September.

tesla tsla stock price

Beyond Cars: AI, Robotaxis, and Humanoid Robots

Tesla has continued to push beyond its traditional EV business. In 2025, the company expanded its self-driving taxi service in Austin, Texas, with plans to extend operations to Nevada and Arizona. These robotaxi services are part of Tesla’s long-term vision to transform urban mobility through AI-driven transportation.

The company is also advancing its humanoid robot project, with sales expected to begin in 2026. The project is still in development, but it shows Tesla’s goal to use robotics in business and industry.

In addition, Tesla continues to strengthen its energy storage solutions. Battery innovations and big storage projects are key to its plan. They support renewable energy use around the globe. Together, these initiatives show Tesla’s effort to diversify and establish itself as a leader in both AI and clean energy.

Financial Results Show Strengths and Strains

Tesla’s most recent quarterly earnings reflected both progress and challenges. The company reported $22.5 billion in revenue, slightly below the market expectation of $23.18 billion. Earnings per share (EPS) were $0.40, missing the consensus forecast of $0.43.

Even with the earnings miss, Tesla’s market cap is still huge. Investors continue to trust its growth path, which keeps it among the world’s largest companies.

Analysts project Tesla will deliver around 495,000 vehicles in the third quarter of 2025, which could mark a new record. In 2026, forecasts show deliveries might reach about 1.9 million units. This includes the much-anticipated “Model 2.”

The Roadblocks: Competition and High Valuations

Tesla’s growth story is not without risks. The EV industry is getting more competitive. Established automakers and new companies are quickly expanding their electric lineups. In markets like China, Tesla faces pressure from lower-cost manufacturers who are rapidly scaling production.

Another concern is Tesla’s high stock valuation. At more than 168 times projected 2026 earnings, the company trades at a premium that some investors see as unsustainable.

Tesla’s investments in robotics also carry execution risk. Developing humanoid robots at scale will require breakthroughs in hardware, software, and AI integration. It also has to tackle regulatory issues and labor market challenges.

Driving Net-Zero: Tesla’s ESG Blueprint

Sustainability remains central to Tesla’s mission and identity. The company aims for net-zero emissions by 2040. They have set interim science-based targets. These targets are verified by external organizations.

Its ESG strategy focuses on several pillars:

  • Net-Zero and Carbon Emissions: Cutting greenhouse gases across Scope 1, 2, and 3 categories.

  • Circular Economy: Expanding recycling programs to reduce reliance on raw mineral extraction.

  • Battery Innovation: Increasing recovery of nickel, lithium, and cobalt from used batteries.

  • Water Stewardship: Moving toward water-neutral operations across global factories.

  • AI Supply Chain Optimization: Using predictive logistics to lower emissions in transport and distribution.

Tesla has already achieved measurable progress. Since 2020, it has reduced Scope 1 emissions by 35% and Scope 2 emissions by 41%, largely due to expanded on-site solar power. However, Scope 3 emissions remain the biggest challenge, making up about 84% of Tesla’s total carbon footprint in 2024.

tesla emissions reduction
Source: The Sustainable Innovation

The company is tackling this issue by working with suppliers to cut emissions. It also redesigns logistics networks and scales up recycling and energy efficiency programs.

The EV leader says its customers have avoided around 32 million metric tons of CO2 equivalent through its products. That’s a 60% increase compared to the previous year.

Key Emissions Progress and Other Sustainability Moves: 

  • Tesla has sold over 4.2 million EVs globally as of 2024.

  • It achieved about 82% renewable energy usage across its global manufacturing sites in 2024.

  • Battery recycling throughput rose by 34% year-over-year in 2024.

tesla battery recycling growth
Source: The Sustainable Innovation
  • Tesla’s Gigafactory in Berlin became net water-neutral in 2024 (it offset its freshwater use via reuse or treatment).

  • Average water use per vehicle produced is 2.5 cubic meters in 2024, which is about 35% less than typical auto manufacturing averages (~3.8-4.0 cubic meters).

The Bigger Picture: Tesla’s Role in the Transition

Tesla’s impact extends beyond its own operations. By expanding EV adoption, the company has helped reduce global dependence on fossil fuels. The International Energy Agency (IEA) reports that EVs cut over 80 million metric tons of CO₂ emissions globally in 2024. Tesla was the biggest contributor.

Its growing energy storage solutions help utilities balance renewable power grids. This cuts emissions from backup fossil fuel plants. For example, Tesla’s Megapack projects in California and Australia have already replaced thousands of megawatts of fossil-based generation capacity.

tesla energy storage
Source: Tesla

These developments position Tesla not only as an EV leader but also as a major player in global decarbonization efforts.

Tesla’s story in 2025 is one of growth, innovation, and risk. Strong analyst ratings, new technology, and eager investors have driven its stock performance.

Tesla’s most enduring advantage may be its commitment to sustainability. With significant emissions reductions already achieved and ambitious net-zero goals ahead, the EV giant is shaping the clean energy transition while maintaining its role as a technology leader.

As the company advances into 2026, investors and stakeholders will be watching closely to see whether Tesla can balance bold innovation with sustainable, long-term growth.

The post Tesla Stock Powers Ahead: Can TSLA Balance AI, EV Growth, and Net-Zero Goals? appeared first on Carbon Credits.

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Amazon Tops Global Clean Energy Rankings With 40GW Renewable Projects Says BNEF

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Amazon Tops Global Clean Energy Rankings With 40GW Renewable Projects Says BNEF

Amazon, once again, is one of the top corporate buyers of clean and renewable energy in the world. For the fifth year in a row, the company leads global corporate renewable energy procurement. BloombergNEF again recognized Amazon as a top corporate purchaser of carbon-free power, with a portfolio that adds significant new clean energy to grids.

Amazon’s clean energy projects now span more than 700 global initiatives. These include utility-scale solar and wind farms, battery storage, onsite solar, and other carbon-free energy sources across 28 countries.

So far, Amazon has invested in over 40 gigawatts (GW) of carbon-free energy capacity. This amount of power could supply the annual electricity needs of more than 12.1 million U.S. homes if it were used for residential demand.

These investments make Amazon not just a buyer of clean power for itself, but a major driver of new renewable energy build-out around the world.

From First PPA to 40GW Global Portfolio

Amazon’s renewable energy footprint has expanded rapidly over the past decade. The big tech company was the biggest corporate buyer of renewable energy in 2025, based on BloombergNEF data. It signed multiple power purchase agreements (PPAs) and grew its clean energy portfolio.

corporate clean energy purchases BNEF 2025
Source: BNEF
  • Amazon has backed over 700 wind and solar projects around the world. This clean energy can power more than 12.1 million U.S. homes each year.

This expansion includes utility-scale wind and solar farms. It also covers renewable energy bought through PPAs. Additionally, it features on-site rooftop and ground-mount solar projects at Amazon facilities.

Over time, these efforts have helped the tech giant use more clean energy for its electricity, which is a key part of its climate strategy.

Amazon renewable energy portfolio 2025

Solar, Wind, Storage — and Next-Gen Power

Amazon’s clean energy portfolio includes a broad mix of technologies:

  • Solar power: 300+ utility-scale solar and wind farms and 300+ onsite solar projects.
  • Wind energy: Large wind farms in multiple countries, with 6 offshore wind farms in Europe. 
  • Energy storage: Battery storage projects that help balance intermittent renewable output. It has 11 utility-scale battery storage projects. 
  • Emerging technologies: Amazon has invested in advanced options like nuclear small modular reactors (SMRs), with 4 nuclear power agreements. These help provide firm, low-carbon baseload power. 

These investments help replace fossil fuel generation on local grids. They also support grid reliability and reduce electricity costs over the long term.

In Mississippi, for example, Amazon worked with a utility to enable 650 megawatts (MW) of new renewable energy on the grid. Once operational, this capacity will serve the equivalent of over 150,000 homes and improve grid reliability.

Moreover, the company’s 253 MW Amazon Wind Farm Texas contributes around 1,000 GWh of clean power annually. Meanwhile, its European solar and wind assets alone total about 4,600 MW of capacity.

All these efforts form part of the e-commerce’ push for its 2040 net zero targets.

Powering the Path to Net Zero 2040

Amazon has set multiple climate and sustainability targets. The company aims to reach net-zero carbon emissions by 2040 — a goal it committed to early as part of The Climate Pledge.

Amazon net zero emissions 2040
Source: Amazon

To work toward that long-term target, Amazon set a goal to match its electricity use with renewable energy. It reached 100% renewable electricity for its operations ahead of schedule, well before its original 2030 goal.

This means Amazon is purchasing an amount of renewable electricity equal to its total annual consumption. Clean power comes from renewable projects connected to the grid. These projects are supported by long-term PPAs and other contracts.

The renewable energy purchases lower Amazon’s Scope 2 emissions, which come from the electricity it buys. They also help decarbonize the grids where the company operates.

Corporate Buyers Now Rival National Grids

Amazon’s clean energy efforts are part of a larger shift across the corporate world.

Since 2008, companies have bought almost 200 GW of renewable energy worldwide through corporate PPAs and other agreements. This capacity exceeds the total electricity generation of some countries, like France or the United Kingdom.

In 2023, companies revealed a record 46 GW of clean energy deals. These renewable power commitments support new solar and wind farms.

Large tech companies, including Amazon, Google, Microsoft, and Meta, are some of the most active buyers. Those tech firms accounted for a significant share of corporate clean energy procurement over the last decade.

This trend shows that corporate demand can speed up the clean energy shift by providing renewable power developers with long-term revenue certainty.

 Jobs, Grid Stability, and Market Transformation

Corporate clean energy procurement, though slowed down in 2025, has broader economic and energy-system impacts. Investments in renewable projects contribute to job creation, local economic growth, and grid resilience.

Amazon’s solar and wind farms create many construction and operation jobs. They also boost the economy in rural areas. For example, the Great Prairie Wind Farm in Texas has 350 wind turbines. These turbines provide over 1,000 MW of capacity and are one of the largest assets in Amazon’s portfolio.

Also, Amazon’s clean energy deals boost renewable capacity. These projects are in Brazil, India, China, Australia, and Europe, which support markets with different grid mixes. These projects can cut down on fossil fuel-based electricity. They also help local grids stay cleaner and stronger.

Permitting, Policy, and the Next Growth Wave

Despite strong progress, corporate clean energy procurement still faces challenges.

Renewable projects often depend on grid capacity, permitting, and supportive policy frameworks. In some regions, complex regulations or limited grid access can slow project development and clean energy adoption.

Nevertheless, the trend of corporate power purchasing is expected to grow. Data from the Clean Energy Buyers Association (CEBA) shows that U.S. businesses have signed contracts for 100 GW of clean energy. This milestone highlights how important companies are in today’s energy landscape.

Global renewable capacity is also expanding rapidly. According to IRENA, global renewable power capacity reached 4,448 GW at end-2024 after adding a record 585 GW. That’s 15.1% growth with solar leading 75%+ of additions. The 2025 additions are expected to maintain record growth toward the 2030 tripling goal.

Renewables are now growing faster than fossil fuels in new capacity. Looking ahead, strong demand from companies for clean energy will boost growth. Better policies and tech advancements will also help renewable power buying and grid decarbonization.

Private Capital Driving Public Energy Changeaction

Amazon’s clean energy leadership shows how corporate buyers can influence the global energy transition. By securing large portfolios of renewable power, the tech giant and other major corporations are investing in the future of clean electricity. These investments not only help reduce their own emissions but also fund new clean energy capacity that benefits broader society.

As corporate renewable procurement grows, so does the clean energy market. This can lower costs, stimulate innovation, and increase the pace of emission reductions across power systems worldwide.

With more companies setting clean energy goals and signing long-term agreements, the private sector continues to be a powerful force in the shift toward a low-carbon economy.

The post Amazon Tops Global Clean Energy Rankings With 40GW Renewable Projects Says BNEF appeared first on Carbon Credits.

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NVIDIA Hits Almost $216 Billion Revenue as AI Boom Tests Its Climate Strategy

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NVIDIA Hits Almost $216 Billion Revenue as AI Boom Tests Its Climate Strategy

NVIDIA’s latest earnings report shows the scale of the AI boom. The chipmaker reported record revenue and became the fourth U.S. tech company to exceed $100 billion in annual profit. Alongside financial growth, Nvidia continues to push renewable energy use and efficiency gains. The results highlight the growing link between AI expansion and sustainability challenges.

NVIDIA reported record revenue of $68.1 billion for the fourth quarter of fiscal 2026, ending January 25, 2026. This figure was up 73% from a year earlier and up 20% from the prior quarter. Data center sales, which fuel artificial intelligence (AI) growth, were $62.3 billion, or about 91% of total revenue in the quarter.

For the full fiscal year, NVIDIA posted $215.9 billion in revenue, a jump of 65% from the prior year. Net income reached tens of billions, $120,067 million for the full year and $42,960 for the 4th quarter. Earnings per share also grew significantly.

These results exceeded most analysts’ expectations and underscored NVIDIA’s continued leadership in AI compute hardware. The company also forecast strong revenue for the first quarter of fiscal 2027.

NVIDIA financial results 2025
Source: NVIDIA

NVIDIA’s Sustainability Commitments at a Glance

NVIDIA has increasingly highlighted its environmental and sustainability goals in recent years. For the fiscal year 2025, the company achieved 100% renewable energy use for all offices and data centers it directly controls.

The renewable supply came from a mix of:

  • On-site generation
  • Purchased renewable electricity
  • Energy attribute certificates (EACs)
  • Power purchase agreements (PPAs)

This milestone eliminates the company’s market-based Scope 2 emissions tied to electricity use in those facilities.

While operational emissions from electricity have been addressed, total emissions figures remain complex. NVIDIA reported that its total greenhouse gas emissions increased. This includes Scope 3 emissions linked to its supply chain and purchased goods. Scope 3 emissions accounted for the bulk of its emissions inventory, and they rose significantly year-over-year.

Nvidia GHG emissions 2024

NVIDIA has also incorporated science-based targets and reduction plans into its public disclosures. The company aims to cut direct (Scope 1) and electricity-related (Scope 2) emissions by about 50% by 2030. This is based on its baseline figures. These science-based targets are consistent with internationally recognized climate frameworks.

Beyond energy use, NVIDIA has implemented other environmental actions. Closed-loop liquid cooling systems in data centers help cut water use. Also, there are significant increases in recycling electronic waste each year.

AI Performance Per Watt: NVIDIA’s Efficiency Edge

NVIDIA’s technology can influence emissions well beyond its own operations. The company’s GPUs and systems power AI infrastructure around the world. Many of these systems are designed to be energy efficient.

For example, NVIDIA-based systems dominate rankings of the most energy-efficient supercomputers globally. The Green500 list ranks systems based on energy efficiency.

Many top entries use NVIDIA GPUs, especially the advanced Grace Hopper architecture. These systems deliver high computing performance per watt of power, helping labs and data centers run complex workloads with less energy.

Record Profits, Cautious Market Reaction

Despite the strong financial performance, NVIDIA’s share price movement highlights market nuances. Some reports noted that after an initial uptick in after-hours trading, the stock’s gains flattened or reversed. This response came even as NVIDIA beat revenue and profit expectations.

NVIDIA nvda stock price

Analysts point to broader concerns about the valuation of high-growth AI stocks. Investors are cautious despite strong earnings. They worry about how fast AI demand will grow and whether valuations show future risks.

In early 2026, NVIDIA’s stock had also seen uneven performance year-to-date. Some analysts believe the trading pattern after earnings shows sector sentiment more than the company’s actual results.

NVIDIA’s profit scale also stands out compared with other major U.S. tech firms. For fiscal year 2026, the tech giant reported $120 billion in net income. This made it the fourth U.S. tech company ever to exceed $100 billion in annual profit, joining Alphabet, Apple, and Microsoft.

  • NVIDIA’s result trails only Alphabet’s $132 billion profit in 2025, which remains the largest annual profit ever recorded by a U.S. company.

The speed of NVIDIA’s rise is also notable. Just three years ago, the company’s annual net income was $4.4 billion. In its most recent quarter, the chipmaker generated that amount in less than 10 days.

Nvidia annual profit 2025 vs other big tech
Source: Statista

By comparison, Apple took 18 years to grow from $5 billion in annual profit to $112 billion, beginning around the launch of the iPhone in 2007. Microsoft took 27 years to move from $5 billion to more than $100 billion in annual profit. Alphabet first crossed the $100 billion mark in 2024. NVIDIA hit this milestone in under three years. CEO Jensen Huang pointed out the company’s AI gains in May 2023.

Efficiency Gains vs. Expanding Energy Footprint

NVIDIA’s external ESG ratings are similar to those of other tech companies for environmental and governance metrics. However, the scores vary in social and supply chain areas. These ratings consider things like how well companies disclose information, their plans for cutting emissions, and their governance. They also look at challenges related to wider supply chain emissions.

One sustainability ranking highlighted a “paradox” in NVIDIA’s performance. It noted that NVIDIA’s chips are among the most energy-efficient in the world, which boosts its sustainability profile. The quick rise in total energy use for AI infrastructure is increasing overall environmental impacts. This happens even as per-unit efficiency improves.

NVIDIA’s renewable energy goals and efficiency gains have positioned it as a leader. It combines strong finances with sustainable growth. For instance, in a 2026 list of top firms for sustainable growth, NVIDIA stood out. It achieved 100% renewable energy for its offices and data centers. Plus, its GPU platforms are energy efficient.

Can AI Hypergrowth Align With Climate Targets?

NVIDIA’s sustainability strategy focuses on three key areas:

  • Reducing direct and indirect emissions.
  • Improving energy use.
  • Enhancing reporting transparency.

The company has achieved important goals. It now uses renewable energy for its facilities. It has also improved chip efficiency. These steps show progress toward environmental goals.

Still, rising Scope 3 emissions and the booming demand for AI compute make tackling environmental impacts more complex. NVIDIA’s sustainability reports highlight that energy use in data centers is a major barrier. This limits both digital infrastructure growth and climate progress.

Energy-intensive “AI factories” — large data centers running training and inference workloads — require large power supplies, often on par with traditional industrial factories. This growth in demand puts pressure on energy systems to shift toward low-carbon sources.

NVIDIA’s efforts to work with suppliers on emissions targets and its investments in energy efficiency aim to address parts of this challenge. But the company has not yet announced a full net-zero emissions target with a fixed date.

So, What Comes Next for NVIDIA?

In the near term, NVIDIA will likely continue to be a focal point for both earnings performance and ESG debate. Future earnings releases and sustainability reports will show whether the company’s actions keep pace with its growth.

Investors and stakeholders will watch how NVIDIA manages AI demand, emissions challenges, and energy efficiency together.

On the sustainability side, developing and reporting progress on Scope 3 emissions, supplier engagement, and potential net-zero pathways will shape ESG evaluations. As AI energy use rises worldwide, companies like NVIDIA will face more scrutiny over how they balance growth with their emissions and climate impact.

Overall, NVIDIA’s record earnings and sustainability efforts highlight its role in tech innovation and environmental change. The company balances rapid AI growth with a commitment to lowering its environmental impact.

The post NVIDIA Hits Almost $216 Billion Revenue as AI Boom Tests Its Climate Strategy appeared first on Carbon Credits.

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Indigo Carbon Surpasses 2 Million Soil Carbon Credits in Landmark 1.1 Million Issuance

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Indigo Carbon Surpasses 2 Million Soil Carbon Credits in Landmark 1.1 Million Issuance

Indigo Carbon announced it has now passed 2 million metric tons of verified climate impact from U.S. croplands. The company reached the milestone after issuing its fifth U.S. “carbon crop.” The new issuance includes 1.1 million independently verified carbon credits issued through the Climate Action Reserve (CAR).

Indigo describes the milestone in its announcement as a sign that soil-based carbon programs can scale. It also points to rising corporate demand for credits that meet stricter quality rules.

Indigo’s latest issuance is important because it is linked to a major registry method that now carries an additional integrity label. Max DuBuisson, Head of Impact & Integrity, Indigo, remarked:

“Indigo continues to set the standard for high-integrity soil carbon removals that corporate buyers can trust. Soil carbon is uniquely positioned to scale as a climate solution because it captures and stores carbon while also improving water conservation and crop resilience. By combining world-class science and technology with farmer-driven practice change, we’re proving that agricultural soil carbon is an immediate, durable, high-integrity solution capable of helping global companies meet their climate commitments.”

Inside the 1.1M Credit Issuance and CCP Label

Indigo says its fifth issuance includes 1.1 million carbon credits verified and issued through CAR. These credits come from Indigo’s U.S. soil carbon project, listed on the Climate Action Reserve under the Soil Enrichment Protocol (SEP) Version 1.1.

CAR’s SEP is designed to quantify and verify farm practices that increase soil carbon and reduce net emissions. It covers changes in soil carbon storage and also includes reductions in certain greenhouse gases tied to farm management.

CAR’s SEP Version 1.1 has the ICVCM Core Carbon Principles (CCP) label. This means the method meets the standards set by the CCP framework.

ICVCM core carbon principles
Source: ICVCM

Indigo’s disclosures also describe long-term monitoring rules. The company reports that its U.S. project includes 100 years of project-level monitoring after credit issuance, in line with CAR requirements. This mix of independent verification, registry issuance, and long monitoring periods is central to the case Indigo makes for credit quality.

Breaking Down the 2 Million Ton Milestone

Indigo says its total verified impact now exceeds 2 million metric tons of carbon removals and reductions across U.S. croplands.

In carbon markets, one credit equals one metric ton of CO₂ equivalent. Indigo’s latest issuance is very large by soil carbon standards. It also builds on earlier “carbon crop” issuances.

Indigo’s project disclosures include a quantified impact figure for its U.S. project. The company reports 927,367 tCO₂e reduced or removed through Dec. 31, 2023, for the project listed as CAR1459.

Indigo Carbon impact by the numbers
Source: Indigo

Indigo announced it has saved 118 billion gallons of water. It has also paid farmers $40 million through its programs so far. These points matter because many buyers now look beyond carbon totals. They also want evidence of farmer payments, monitoring rules, and co-benefits like water conservation.

Corporate Demand Shifts Toward Verified Removals

One reason soil carbon is getting more attention is the growing demand from buyers for removals. Many companies now focus more on carbon removal credits, not only avoidance credits.

Indigo’s largest recent buyer example is Microsoft. In January 2026, the carbon ag company announced a 12-year agreement under which Microsoft will purchase 2.85 million soil carbon removal credits from them.

  • The soil carbon producer said this is Microsoft’s third transaction with the company, following purchases of 40,000 tonnes in 2024 and 60,000 tonnes in 2025.

The tech giant’s purchases show how corporate buyers may use long-term offtake deals to secure future supply of credits. This matters for soil carbon programs because credits are typically generated over multiple years. And they also depend on practice changes and verification cycles.

Indigo also says its program works across eight million acres, which signals how it is trying to scale participation across U.S. farms.

Soil Carbon Credits: Market Trends and Forecast

Soil carbon credits are gaining attention as buyers shift toward higher-quality credits and clearer verification rules. Ecosystem Marketplace reports that the voluntary carbon market is entering a new phase. This phase emphasizes integrity, even though trading activity has slowed down.

In its 2025 market update, Ecosystem Marketplace noted a 25% drop in transaction volumes. This decline shows lower liquidity as buyers are becoming more selective.

Voluntary carbon credit market; price, volume, value 2022-2024

At the same time, demand for higher-quality credits is rising. Sylvera’s State of Carbon Credits 2025 reported that retirements dropped to 168 million credits in 2025, a 4.5% decrease.

Still, the market value climbed to US$1.04 billion due to rising prices. It also found that higher-rated credits (BBB+) made up 31% of retirements, and traded at higher average prices than lower-rated supply.

For soil carbon, buyers are also watching methodology quality. The ICVCM has approved two sustainable agriculture methods as CCP-approved. These are the Climate Action Reserve’s Soil Enrichment Protocol v1.1 and Verra’s VM0042. This can support stronger buyer confidence and may increase demand for soil credits that meet CCP rules.

Looking ahead, Sylvera projects compliance-linked demand will keep growing and could exceed voluntary demand by 2027. That trend may favor credits with stronger verification and compliance alignment, including higher-integrity soil carbon credits. However, integrity issues still occur, and this is where Indigo comes in.

Tackling Permanence and MRV Head-On

Soil carbon credits face a key challenge: carbon stored in soil can be reversed. A drought, land use change, or a shift in farm practices can reduce stored carbon.

This is why monitoring and reversal rules matter. CAR’s protocol is built to quantify, monitor, report, and verify practices that increase soil carbon storage.

Indigo’s project disclosure notes that projects are monitored for 100 years after they are issued. This shows the durability rules tied to their method and registry approach.

The company also positions its program as “outcome-based,” meaning it pays for verified carbon outcomes rather than paying only for adopting a practice. This messaging is designed to reassure buyers that credits are not only modeled. It stresses verification and the registry process.

A Scale Test for High-Integrity Soil Carbon

Indigo’s fifth issuance lands at a time when voluntary carbon markets are placing more weight on integrity labels and independent verification.

Two parts stand out:

  • First, volume. An issuance of 1.1 million credits through a registry is large for an agricultural soil carbon program.
  • Second, method approval. CAR’s SEP Version 1.1 carries the ICVCM CCP label, which is meant to signal alignment with a global integrity benchmark.

That combination may make it easier for corporate buyers to justify purchases internally. Many companies now face stronger scrutiny from auditors, regulators, investors, and civil society groups.

At the same time, more supply does not automatically mean market confidence rises. Buyers still assess risks such as permanence, additionality, and measurement uncertainty.

Even so, the milestone shows how fast some parts of the removals market are trying to scale. Large buyers are also helping drive this shift through multi-year offtake deals, like the Microsoft agreement for 2.85 million credits.

For Indigo, the new issuance supports its claim that soil carbon is moving from small pilot volumes toward larger, repeatable issuances. For the market, it adds another real-world data point: a major soil carbon program has now completed five issuance cycles and passed 2 million metric tons of verified climate impact.

The post Indigo Carbon Surpasses 2 Million Soil Carbon Credits in Landmark 1.1 Million Issuance appeared first on Carbon Credits.

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