Orrick, Herrington & Sutcliffe LLP
05/16/2024 | Press release | Distributed by Public on 05/16/2024 07:48
Decarbonization Through Reforestation: Microsoft Signs ‘Landmark Forest Restoration’ Agreement in Brazil
Microsoft has agreed to buy three million tons of carbon removal credits over 15 years from re.green, a reforestation organization in Brazil.
Orrick advised Microsoft.
The agreement paves the way for re.green to plant more than 10 million trees in Brazil.
THE COMPANIES
The agreement is Microsoft's second major purchase of carbon removal credits from forest restoration in Brazil, and it underscores the importance of nature-based solutions in addressing climate change, Brian Marrs, Microsoft's senior director for energy & carbon removal, said on LinkedIn.
Microsoft's carbon removal agreement is with re.green, an organization that seeks to restore forests in Brazil.
The organization hailed "a landmark forest restoration project with Microsoft." CEO Thiago Picolo said re.green views "Microsoft's carbon removal program to be a global benchmark for high integrity carbon removal."
THE IMPACT
The project will enable over 10 million trees to grow and sequester carbon, Marrs said. re.green will also support biodiversity conservation and local workforce development
"High-quality, nature-based solutions are vital to addressing climate change and we are excited to pursue this offtake deal in Brazil with re.green," Marrs said. "Projects like those undertaken by re.green are an important part of our carbon removal portfolio."
In the last year, Microsoft signed one of the largest permanent CO2 removal deals, the world's first fusion energy purchase agreement and a 12GW solar module agreement.
Just this month, Microsoft announced the largest single corporate power purchase agreement (PPA) ever signed - a deal to deliver over 10.5 GW of renewable power capacity to the U.S. and Europe between 2026 and 2030.
THE TEAM
Orrick's Lana Le Hir, Teresa Hill and Li Shen advised Microsoft. Marrs highlighted "the great legal and technical support from Lana Le Hir," as did Microsoft's Annie Guo, and re.green thanked her, too.