Microsoft signs a Carbon Removal agreement with Brazilian reforestation company re.green

Microsoft has entered into an agreement with re.green, a Brazilian reforestation company. This deal is Microsoft’s second investment in nature-based carbon credits from Brazil in the past six months.

The agreement details Microsoft’s purchase of carbon removal credits over a 15-year period. Brazil’s extensive degraded lands and tropical climate make it a suitable location for large-scale reforestation initiatives. Studies show that through reforestation and sustainable land management, Brazil can become a global leader in carbon sequestration.

Founded in 2022, re.green is a relatively new player in the reforestation sector. The company has ambitious plans to manage a land area for reforestation. Notably, re.green’s board includes a former central bank president, and the company has secured investments from a prominent Brazilian family.

On the other hand, investigations have been launched into certain carbon credit projects for alleged harassment of indigenous communities and failure to deliver promised benefits to local populations.

Re.green’s approach focuses on planting native trees in previously deforested areas of the Amazon and Atlantic rainforests. Their strategy includes harvesting of some trees after 25 years, followed by replanting with permanent forests. 

The agreement with Microsoft is a big move for re.green. The deal is likely to attract further investment and potentially open doors to debt financing, enabling the company to expand its reforestation efforts. 

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