Microsoft has signed a new carbon dioxide removal (CDR) deal with U.S.-based regenerative agriculture company Indigo Ag, purchasing 2.85 million soil carbon credits to be delivered over a period of 12 years.
The credits will be issued through the Carbon by Indigo program that helps American farmers adopt regenerative agriculture practices, which have been recognized by both climate organizations and governments as a powerful CDR tool that has the potential to remove over 3.5 gigatons of CO2 equivalent annually.
Beyond impactful carbon removal results, regenerative agricultural practices also introduce meaningful water management benefits, including improved water infiltration and water conservation.
The Carbon by Indigo program also creates an additional income source for partnering farmers, and to date, the company states it has paid farmers $40 million across all of its programs, independently of government funds.
Currently, Indigo Ag is collaborating with a network of farmers active across eight million acres, who are incentivized to adopt regenerative practices in their work, improving the ecosystem and farm resiliency in the process.
This agreement marks the third official collaboration between Indigo Ag and Microsoft. In June 2024, Microsoft purchased its first soil CDR from Indigo, investing in a volume of 40,000 credits that was topped off in May 2025 with a new agreement for an additional 60,000 credits.
The newly announced purchase is one of the first ones to feature credits approved under ICVCM’s Core Carbon Principles.
Relying on peer-reviewed research, on-the-ground science, and cutting-edge remote sensing and machine learning, so far, Indigo has issued 927,296 CO2 removal and reduction credits from its CAR1459 project, using the Climate Action Reserve’s Soil Enrichment Protocol (SEP).
To reduce the risk of reversal, Indigo has implemented measures throughout the 40-year durability term agreed upon with Microsoft, and it will adhere to SEP’s 100-year monitoring and reversal compensation obligations.
Read more: Microsoft Buys New 60,000 Soil Carbon Credits From Indigo Ag
“Microsoft’s purchase highlights the transformative power of regenerative agriculture to support watersheds, support farming communities, and advance global net-zero goals,” said Meredith Reisfield, Senior Director of Policy, Partnerships, and Impact at Indigo.
Phillip Goodman, Director of Carbon Removal at Microsoft, stated, “Microsoft is pleased by Indigo’s approach to regenerative agriculture that delivers measurable results through verified credits and payments to growers, while advancing soil carbon science with advanced modeling and academic partnerships.”
