Indigo to Sell 2.85 Million Tonnes of Carbon Removal to Microsoft, Supporting Soil Health Through Regenerative Agriculture

Microsoft has agreed to buy 2.85 million soil carbon removal credits from Indigo Carbon PBC under a 12-year contract, marking one of the largest such deals to date. The credits will be generated through Indigo’s U.S.-based Carbon by Indigo program, which focuses on regenerative agriculture to produce high-integrity carbon removals. This follows prior purchases of 40,000 tonnes in 2024 and 60,000 tonnes in 2025, reinforcing Microsoft’s goal to be carbon negative by 2030.

The agreement supports thousands of American farmers across millions of acres, providing financial incentives for adopting regenerative practices. These practices improve soil health, increase crop resilience, and enhance water conservation, offering co-benefits to rural communities facing environmental pressures. Indigo has paid farmers $40 million across its programs to date, independent of government funding, while issuing nearly one million tonnes of CO₂e credits since 2018.

Indigo’s credits are verified under the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles, using peer-reviewed research and advanced modeling. The company has issued 927,296 credits under the Climate Action Reserve’s Soil Enrichment Protocol, with measures to reduce reversal risk over a 40-year durability term. Microsoft highlighted Indigo’s commitment to project quality and third-party standards in advancing soil carbon science.

The deal underscores the growing role of regenerative agriculture in carbon removal, with potential to remove over 3.5 gigatons of CO₂e annually. Indigo Ag operates the Carbon by Indigo program through its public benefit corporation subsidiary, Indigo Carbon PBC, aiming to build a sustainable global food system while supporting farm productivity and ecosystem health.