Sustainable agriculture and biological solutions provider Indigo Ag and Microsoft announced a new carbon removal purchase agreement, with Indigo delivering 40,000 tons of carbon credits to Microsoft generated through the promotion of regenerative agriculture practices by U.S. farmers.

Regenerative agriculture practices are aimed at addressing the environmental impact of the sector, and include techniques to improve and restore ecosystems, build soil health and fertility, reduce emissions, enhance watershed management, increase biodiversity, and improve farmers’ livelihoods.

Founded in 2013, Indigo Ag provides nature-based and digital technologies aimed at helping farmers improve profitability and environmental sustainability. The company launched its carbon program in 2019, helping farmers adopt regenerative agriculture practices including cover crops, diversified crop rotation, reduced tillage and improved nitrogen timing, that enrich soil while sequestering carbon dioxide. Under the program, farmers add the new practices with agronomic support from Indigo, while the company also calculates the carbon credits through the use of soil samples and on-farm data, validates the findings with a verifier, with results submitted to a carbon registry, for issuance of the credits, which can be sold to corporate buyers.

To date, Indigo’s solutions have removed over 340,000 tons of emissions, and saved more than 19 billion gallons of water. The agreement with Microsoft marks Indigo’s largest to-date delivery of carbon credits to a single buyer.

Dean Banks, CEO at Indigo Ag, said:

“Today’s announcement is a major milestone for Indigo’s Carbon program and our increasing range of ag-based sustainability solutions. Microsoft is a leader in corporate climate action, a highly influential player in carbon removals and shares our commitment to support the transition to a more resilient and sustainable agriculture system.”

The announcement adds to Microsoft’s growing portfolio of carbon removal purchases, forming part of the tech giant’s initiative to become carbon negative by 2030, which span an increasing range of solutions and technologies including, direct air capture (DAC), ocean-based carbon removal, and biochar-based projects, and include several large-scale nature-based carbon removal agreements. Microsoft announced the largest-ever carbon removal transaction earlier this week, agreeing to purchase 8 million tons of carbon removal credits from BTG Pactual Timberland Investment Group (TIG), generated through reforestation and forest restoration projects.

Brian Marrs, Senior Director of Energy and Carbon Removal at Microsoft said:

“Soil organic carbon restoration is vital to the future of food systems, economies and climate change mitigation. We are pleased to collaborate with Indigo Ag to advance both the adoption of regenerative agriculture practices and the soil organic carbon scientific evidence base.”