Microsoft extends partnership with UNDO for 28,900 tonnes of carbon removal by 2036, financed through Inlandsis Fund.
Innovative debt structure marks Inlandsis’ first enhanced rock weathering (ERW) investment and its first Canadian deal under its second fund.
The partnership supports Microsoft’s 2030 carbon-negative goal and advances gigatonne-scale carbon removal technologies.
Microsoft Deepens Ties with UNDO to Scale Carbon Removal
Carbon removal company UNDO has signed a new agreement with Microsoft to permanently remove 28,900 tonnes of carbon dioxide by 2036, in a deal underpinned by debt financing from the Inlandsis Fund, managed by Fondaction Asset Management.
The agreement expands an ongoing collaboration between the technology giant and the Scotland-based enhanced rock weathering (ERW) company, reflecting growing investor confidence in mineral-based carbon sequestration. The Inlandsis financing will fund full project delivery while creating a model for scaling high-integrity ERW projects across new geographies.
This marks Microsoft’s third carbon removal contract with UNDO since 2023, following purchases of 5,000 tonnes and 15,000 tonnes of verified removals. Combined, the three deals bring Microsoft’s total ERW commitment with UNDO to nearly 49,000 tonnes — a notable signal of the company’s conviction in the scientific durability and scalability of ERW within its climate portfolio.
Financial Innovation to Catalyze Climate Scale
The financing model introduces a new mechanism for de-risking carbon removal projects while attracting institutional capital to emerging climate technologies. Inlandsis Managing Director David Moffat described the transaction as “a strategic and innovative deal” that strengthens the Microsoft–UNDO relationship while marking Inlandsis’ first ERW investment and first Canadian deployment under its second fund.
“Inlandsis is very pleased to provide capital to this strategic and innovative deal,” said Moffat. “It demonstrates our commitment to advancing carbon finance across Canada and beyond, while supporting credible pathways to large-scale climate impact.”
UNDO CEO and Founder Jim Mann said the partnership demonstrates how targeted financial instruments can transform carbon removal into a mainstream asset class. “Innovative financing is the catalyst for unlocking gigatonne-scale carbon removal,” he noted. “The support of Inlandsis shows how financial backers can help transform carbon removal into a genuine asset class — scalable, tradable, and investable.”
Science-Backed Carbon Removal for Long-Term Impact
Enhanced rock weathering accelerates natural mineralization processes, using silicate rock particles to permanently sequester atmospheric CO₂ while improving soil health and crop yields. The approach is gaining traction as one of the few scalable and durable carbon removal pathways capable of achieving gigatonne-level impact within decades.
Phillip Goodman, Director of Microsoft’s Carbon Removal Portfolio, described ERW as “a promising pathway to gigatonne-scale carbon removal,” citing UNDO’s scientific rigor as central to Microsoft’s confidence in the durability of the credits. “UNDO’s commitment to scientific rigour gives us confidence in both the durability of these credits and their role in helping Microsoft achieve its goal of being carbon negative by 2030,” Goodman said.
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Expanding Climate and Agricultural Co-Benefits
UNDO, which operates projects across the UK, North America, and Australia, spreads finely crushed silicate rock across farmland to capture CO₂ while enhancing soil quality. The new project, located in Ontario, will integrate carbon measurement, verification, and monitoring to ensure traceability and permanence — key factors in attracting institutional climate finance.
Supported by corporate backers including Barclays, British Airways, and McLaren, UNDO is scaling operations to deliver millions of tonnes of rock weathering annually. The company views these partnerships as stepping stones toward its longer-term target of contributing to the billion-tonne removal capacity required to meet global climate goals.
Global Context and Policy Implications
The deal arrives amid mounting global interest in durable carbon removal solutions, with the U.S. Department of Energy, the European Union, and the U.K. all establishing frameworks to support high-integrity carbon dioxide removal (CDR) markets. ERW’s dual benefits — long-term sequestration and agricultural productivity — are positioning it as a cost-effective, land-positive option for corporate and national decarbonization strategies.
As Microsoft advances toward its 2030 carbon-negative target, partnerships like UNDO’s represent a growing shift toward measurable, verifiable, and scalable carbon removal. For investors, the Inlandsis model offers a replicable template for blending financial innovation with climate integrity — a crucial step toward transitioning carbon removal from niche experimentation to institutional asset class.
At the intersection of finance, technology, and science, this latest collaboration between Microsoft, UNDO, and Inlandsis points to an emerging phase in global carbon removal: one defined not only by innovation but by the financial frameworks capable of sustaining it at scale.
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