Microsoft announced on Thursday that he was buying over 7 million tons of coal loans from Cheshbon.
The 25-year contract would allow the chestnut to re-supplement 60,000 acres of land in Arkansas, Louisiana and Texas, Axios Reported. Recently, a technology company fought to cut back carbon dioxide emissions because AI led an increase in construction and use of a data center.
Microsoft announced last yr that its emissions increased by 29% since 2020 as a result of a boom in AI and Cloud Computing, introducing the goal 2030 to sequate more coal than it produces. In 2023, the company reported generation 17.1 million tons greenhouse gas emissions before shift.
Coal loans come in many flavors. Chestnut Carbon focuses on re -afforestation, in which the company facilitates the planting of trees, and then monitors recent forests to make sure that they grow in response to plan and are not limited. The company currently has eight projects in the south -eastern United States, which were previously worked as farms or pastures.
Trees naturally sequate coal as the forest is not all coal loans. Loans from projects that plant non -family, rapidly growing trees are generally perceived as lower quality and sell for less, because they do not have more biological diversity, and the trees do not live so long. Projects that support various, native plantings often sell to the bonus, because the results that the results are more resistant over time.
Even Premium coal loans from afforestation, re -foresting and avoiding desecration are a relative contract in comparison with some alternatives. Chestnut Carbon sold loans last yr for $ 34 per ton, while directly intercepting air that fans and chemical sorbents use to attract CO2 From the atmosphere today it costs about USD 600 to 1000 USD per ton. Despite the cost difference, Microsoft also bought coal loans from direct air capture startups.
Despite all their strengths, carbon loans based on nature are not all the time perfect. Verra, which has the biggest nature of the portfolio of coal loans, was the subject extensive investigation In 2023, which reports that the organization has overestimated the climate advantages of its projects. The scandal led to Ouster CEO And he made the industry assess the standards he uses. CHASTNUT CARBON, who previously used Verra to certify coal loans, today uses a golden standard.