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Microsoft hit pause on carbon removal purchases. Now what?

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Why This Matters

Microsoft's decision to pause its carbon removal purchases marks a significant setback for the emerging industry, which relies heavily on corporate support to scale. However, some technologies are resilient enough to continue developing independently, highlighting the importance of diversified approaches in combating climate change. This development underscores the need for the tech industry and consumers to support sustainable solutions beyond major corporate commitments.

Key Takeaways

The nascent industry just lost its biggest buyer, at least temporarily. But some carbon removal technology is designed to survive without corporate support. News that Microsoft was reportedly planning to pause its carbon removal purchases has rocked the still-nascent carbon removal industry. The company helped drive the market: In fiscal year 2025 alone, it made deals with 21 companies around the world to remove a record 45 million tons of CO2.