Forest investment and management company EFM announced that it has secured a two-pronged commitment by tech titan Microsoft.
One of these investments is a multi-year offtake agreement under which EFM will provide Microsoft with up to 700,000 carbon removal credits through 2035.
These credits will be generated through the Olympic Rainforest, an area located on the Olympic Peninsula of Washington state, which was recently purchased by EFM.
Home to EFM’s climate-smart management operations, the company acquired this land to diversify the forest income streams from conventional products into carbon credits and conservation.
For EFM, the deal with Microsoft marks a second investment of this caliber. Last month, the forestry company signed a long-term carbon dioxide removal (CDR) agreement with Meta that will see the delivery of 676,000 nature-based carbon credits through 2035.
The collaboration between EFM and Microsoft extends beyond the offtake contract, as Microsoft’s Climate Innovation Fund (CIF) also invested in the EFM Fund IV, which is focused on mobilizing $300 million for deploying climate-smart forestry across the United States.
With this move, the CIF has made its first forestry investment in the U.S., enabling Microsoft to tap into an additional future stream of high-quality, environmentally and socially impactful carbon credits, expected to amount to 2.3 million.
This CIF investment will power the EFM Fund IV to secure new forest land in the Western U.S. and to explore other domestic markets that could benefit from climate-smart management while creating a competitive advantage for investors.
Relevant: Meta Signs Carbon Removal Deal With EFM, Backing Climate Smart Forestry
Bettina von Hagen, EFM CEO, commented, “Microsoft’s support marks a pivotal step in accelerating support for high-quality improved forest management projects.”
“With their support, we see Fund IV growing and producing significant climate benefits alongside financial value for its investors,” she added.
Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, stated, “Microsoft recognizes the important role of high-quality, nature-based solutions in meeting our Carbon Negative by 2030 goals.”
“Our collaboration with EFM is a significant step towards unlocking the value of the latest scientific advancements in improved forest management as a carbon removal pathway.”
Read more: Arbor Day Carbon And Andriaki Team Up On Reforestation And CDR Credits
