Microsoft announced a new multi-year offtake agreement with forest investment and management firm EFM, providing access to up to 3 million nature-based carbon removal credits from EFM’s investment platform.
Launched in 2004, Portland, Oregon-based EFM is a real estate asset manager focused on investing in natural climate solutions across the Americas. EFM’s approach includes using climate-smart management approaches to its investments in forests, farms, and ecosystems to create carbon sinks, protect water and biodiversity, improve recreational access, and support rural livelihoods. Its revenue stream includes carbon credits and conservation easements alongside income from traditional forest products.
Under the new agreement, EFM will deliver 700,000 carbon removal credits to Microsoft through 2035, sourcing them from a property in Washington State’s Olympic Peninsula that EFM is transitioning to climate-smart forest management.
Additionally, Microsoft, through its Climate Innovation Fund (CIF), has also invested in EFM Fund IV, which aims to mobilize $300 million for climate-smart forestry across the U.S. This is CIF’s first forestry investment in the U.S., and it will give Microsoft access to as many as 2.3 million additional credits, the firms said.
Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, said:
“Microsoft recognizes the important role of high-quality, nature-based solutions in meeting our Carbon Negative by 2030 goals. Our collaboration with EFM is a significant step towards unlocking the value of the latest scientific advancements in improved forest management as a carbon removal pathway. We are proud to contribute to climate-smart forest management in Microsoft’s own backyard on the Olympic Peninsula.”
The EFM IV fund will initially focus on securing forest properties in the Western U.S., while also exploring other domestic markets where climate-smart management can create a competitive advantage for investors, alongside benefits for local communities, EFM said.
Bettina von Hagen, CEO of EFM, said:
“Microsoft’s support marks a pivotal step in accelerating support for high-quality improved forest management projects. Their leadership sets a strong precedent for the carbon market and reinforces the importance of natural forests as a scalable natural climate solution in the U.S. With their support, we see Fund IV growing and producing significant climate benefits alongside financial value for its investors.”
In March, EFM announced a long-term agreement with Meta for the delivery of 676,000 tons of carbon removal credits through 2035.
