In a major step towards climate action, Climate Impact Partners has teamed up with Terra Natural Capital to provide long-term financing for the Panna Afforestation Project in India. As part of this agreement, Microsoft will purchase 1.5 million tonnes of verified carbon removal credits over 30 years, representing 50% of the project’s output.
This marks Microsoft’s largest carbon removal initiative in the APAC region and its first in India, reinforcing its commitment to nature-based solutions in combating climate change.
Key Highlights of the Panna Afforestation Project
11.6 million native trees to be planted across 20,000 hectares (larger than Washington, DC).
Direct financial benefits to farmers through carbon credit sales & sustainable produce.
Water conservation measures, including ponds, borewells, and drip irrigation.
Enhanced biodiversity, attracting birds & butterflies back to degraded land.
Long-term impact through high-quality Verra-certified carbon removal credits.
Leadership Take on Collaborative Effort for Climate Impact
The Panna Afforestation Project is the result of three years of research, due diligence, and pilot activities conducted by Climate Impact Partners’ expert project development team. The initiative leverages Microsoft’s long-term commitment, Climate Impact Partners’ project expertise, and Terra Natural Capital’s financial backing.
Sheri Hickok, CEO, Climate Impact Partners:
“Microsoft has shown bold climate leadership by securing high-quality carbon credits through this project. This model helps scale carbon removal solutions while benefiting communities most impacted by climate change.”
Brian Marrs, Senior Director, Energy Markets, Microsoft:
“High-quality, nature-based solutions are essential for addressing climate change. The Panna project ensures millions of trees are planted, carbon is removed, jobs are created, and finance flows back to local communities.”
Erica Vertefeuille, Managing Director, Terra Natural Capital:
“Access to project finance is critical for scaling the carbon removal market. This partnership is a testament to the power of collaboration in driving large-scale climate impact.”
Ensuring High-Quality Carbon Removal & Sustainability
The project follows Verra’s Afforestation, Reforestation, and Revegetation Methodology (VM0047) and meets the Core Carbon Principle (CCP) standards set by the Integrity Council for the Voluntary Carbon Market (ICVCM). It is also rated A under BeZero’s ex-ante rating and will be verified to the Climate, Community & Biodiversity Standard (CCBS) to track additional environmental and social benefits.
Scaling Nature-Based Climate Solutions
By securing long-term financing and corporate commitments, the Panna Afforestation Project is setting a new benchmark for scalable, high-quality carbon removal initiatives. As companies like Microsoft invest in sustainable solutions, projects like these will play a pivotal role in global decarbonization efforts while uplifting local communities and ecosystems.
