Microsoft reportedly paused all new purchases of carbon removal credits. The company previously served as a primary buyer in the developing market. Existing agreements remain intact as Microsoft communicates the shift to partners and suppliers.
Persistently high costs reportedly drove the halt, though Microsoft has not officially confirmed the reason.
The decision threatens the broader carbon removal industry. Startups relied on Microsoft’s demand signal to attract investment and scale operations. Observers fear the pullback will slow cost reductions and hinder technology development amid a challenging political environment for climate initiatives.