Microsoft has signed a carbon removal agreement with Indian climate-tech startup Alt Carbon, marking a significant step in the tech giant’s efforts to meet its climate goals while highlighting India’s growing importance in the global carbon removal industry.
The deal focuses on a carbon removal technique known as enhanced rock weathering (ERW), a process that captures carbon dioxide from the atmosphere by spreading crushed rock on agricultural land. As the rock naturally breaks down, it absorbs and stores carbon, helping reduce greenhouse gas levels.
Under the agreement, Alt Carbon will generate carbon removal credits through its projects in India, which Microsoft will purchase as part of its broader strategy to become carbon negative. The exact financial details of the deal were not disclosed, but industry observers describe it as a major milestone for India’s emerging carbon removal sector.
Founded by Indian entrepreneurs, Alt Carbon works with farmers to deploy enhanced rock weathering across agricultural regions. The company says the approach not only removes carbon from the atmosphere but can also improve soil health and support agricultural productivity.
The partnership is being viewed as a vote of confidence in India’s climate innovation ecosystem. Until recently, most large-scale carbon removal projects were concentrated in North America and Europe. Microsoft’s decision to work with an Indian startup signals growing international interest in climate solutions being developed in emerging markets.
Carbon removal technologies have become increasingly important as governments and companies seek ways to offset emissions that are difficult to eliminate. Major corporations, including Microsoft, have committed billions of dollars toward achieving ambitious sustainability targets and are investing in a range of carbon reduction and removal initiatives.
India could become a major hub for carbon removal projects due to its large agricultural sector, favourable climate conditions and expanding climate-tech ecosystem. Such projects may also create new income opportunities for farmers participating in carbon credit programs.
For Alt Carbon, the agreement represents a significant validation of its technology and business model. The deal is expected to accelerate the startup’s growth and strengthen India’s position in the rapidly evolving global market for carbon removal solutions.
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