Articles tagged with "carbon-credits"
Microsoft taps India’s Varaha for durable carbon removal offtake
Microsoft has entered into a multi-year agreement with Indian startup Varaha to purchase over 100,000 tons of carbon dioxide removal (CDR) credits through 2029. This deal supports Microsoft’s goal of becoming carbon-negative by 2030 amid rising emissions driven by its expanding AI and cloud operations. Varaha’s project focuses on converting cotton crop waste, typically burned in fields causing pollution, into biochar—a charcoal-like substance that sequesters carbon when added to soil. The initiative will initially operate in Maharashtra, involving 40,000–45,000 smallholder farmers, and plans to deploy 18 industrial reactors over 15 years, targeting over 2 million tons of CO2 removal during the project’s lifetime. Varaha has rapidly scaled its biochar production, processing 240,000 tons of biomass in 2025 and generating approximately 115,000 carbon credits, a significant increase from the previous year. The startup aims to double this throughput in 2026, leveraging its
energycarbon-removalbiocharsustainable-agriculturecarbon-creditsclimate-changecarbon-negative-technologyHow the Next Big Thing in Carbon Removal Sunk Without a Trace
The article chronicles the rise and fall of Running Tide, a US climate startup that aimed to combat climate change by removing carbon from the atmosphere through ocean-based methods. Founded by Marty Odlin, the company initially proposed deploying floating “micro forests” of seaweed on biodegradable buoys that would eventually sink, sequestering carbon deep in the ocean. This vision attracted significant investment, including a $54 million Series B funding round led by Lowercarbon Capital. Running Tide promised to create jobs in the Icelandic town of Akranes and capitalize on the booming carbon credit market driven by tech companies’ growing emissions. However, within less than a year, Running Tide’s approach shifted dramatically to dumping chemically treated Canadian wood chips off Iceland’s coast—a method criticized by ocean-carbon experts as scientifically unsound and potentially harmful to marine ecosystems. The company’s operations likely violated maritime laws and failed to demonstrably remove atmospheric carbon. By late 2024, Running Tide had collapsed: its founder disappeared, employees were gone,
energycarbon-removalclimate-changecarbon-creditsocean-carbon-sequestrationenvironmental-technologysustainabilityKering-backed fund Mirova pours $30.5M into India’s Varaha for regenerative farming
Mirova, a French climate-focused investment firm backed by luxury group Kering and other major corporations, has invested $30.5 million (€26.4 million) in Indian climate tech startup Varaha to expand its regenerative farming program. This marks Mirova’s first carbon investment in India and is structured uniquely: instead of equity, Mirova provides cash in exchange for a share of carbon credits generated over time. The investment supports Varaha’s Kheti project, which promotes low-emission agricultural practices among smallholder farmers in Haryana and Punjab, aiming to improve soil health and generate verified carbon credits as an additional income source. The project currently covers over 200,000 hectares and plans to scale to 675,000 hectares, reaching approximately 337,000 farmers. Varaha, founded in 2022, operates through a network of 48 local partners and uses software to monitor and verify climate and social outcomes in real time. Its regenerative farming methods focus on practices tailored to India
energyregenerative-farmingcarbon-creditsclimate-techsustainable-agricultureemissions-reductionbiocharConsolidation begins to hit the carbon credit market
The carbon credit market is experiencing consolidation amid a softening voluntary carbon market and broader economic uncertainties. Pachama, a carbon management startup focused on nature-based carbon credits derived from forest restoration or preservation, recently laid off staff and is acquiring another carbon credit startup, Carbon Direct. Pachama had raised $88 million from investors including Amazon’s Climate Pledge and notable celebrities, while Carbon Direct, which provides carbon market advisory and accounting services to help companies track and offset their carbon footprints, had raised $60.8 million. The terms of the acquisition were not disclosed. The voluntary carbon market has faced significant challenges, including skepticism about the actual impact of carbon credits. Investigations have revealed that many credits fail to deliver real carbon reductions, largely due to issues like whether protected forests were genuinely at risk of destruction. Additionally, the uncertain geopolitical and economic climate, along with anti-ESG sentiments in the U.S., has led to reduced corporate sustainability budgets, intensifying market corrections. Despite these headwinds, major
energycarbon-creditsclimate-changesustainabilitycarbon-marketsnet-zeroenvironmental-technologyHow one founder plans to save cities from flooding with terraforming robots
San Rafael, a city north of San Francisco, is experiencing significant land subsidence—about half an inch per year—leading to neighborhoods like the Canal District sinking three feet and increasing their flood risk from rising sea levels. Conventional flood protection methods, such as seawalls, are prohibitively expensive for the city, with estimates ranging from $500 million to $900 million. In response, Terranova, a startup led by co-founder and CEO Laurence Allen, proposes an innovative and more affordable solution: raising the land itself using robotic terraforming technology. Terranova estimates it can lift 240 acres of San Rafael by four feet for approximately $92 million, a fraction of the seawall costs. Terranova’s approach involves injecting a slurry made primarily from waste wood mixed with undisclosed materials deep underground (40 to 60 feet) using autonomous robotic injectors. These robots, controlled by proprietary software that models subsurface conditions and optimizes injection patterns, drill wells and deliver the slurry to consolidate the soil and
robotmaterialsenergyroboticsautomationsustainable-materialscarbon-creditsGoogle to buy carbon credits from massive Amazonian reforestation project
Google announced it will purchase carbon credits from a large-scale Amazonian reforestation project as part of its commitment to nature-based carbon removal. This deal was made through an advance market commitment supported by major companies including Google, McKinsey, Meta, Microsoft, and Salesforce. The initiative aims to develop a market for nature-based carbon removal solutions, which, unlike direct air capture projects, focus on natural processes like reforestation to reduce atmospheric CO2. Nature-based carbon removal projects, while promising for their ability to draw down carbon and provide additional benefits such as replenishing aquifers and supporting biodiversity, face challenges in development and long-term viability. Risks include potential damage from wildfires and other environmental disasters. To address these challenges, Google plans to use its DeepMind PerchAI technology to better quantify the biodiversity benefits of the Amazonian reforestation project, enhancing the reliability and impact assessment of such initiatives.
energycarbon-creditsreforestationcarbon-removalclimate-changesustainabilitynature-based-solutionsTerraton wants to be the McDonald’s of biochar
Terraton aims to revolutionize the biochar industry by applying a franchise-style "business-in-a-box" model similar to McDonald’s approach to burger restaurants. Biochar is a carbon-sequestering fertilizer produced by burning agricultural waste in the absence of oxygen, which stores carbon in soil for centuries while enhancing soil health. The company recently raised $11.5 million in seed funding led by Lowercarbon Capital and Gigascale Capital, with participation from notable investors including Google’s Jeff Dean and OpenAI board member Bret Taylor. Terraton plans to help partners build biochar facilities, replicate successful models, and develop a SaaS platform to operate plants, verify carbon credits, and facilitate sales to large corporate buyers like Microsoft and Google. Terraton’s co-founders highlight that biochar production is currently supply-constrained due to the need for facilities to be located near agricultural waste sources to reduce transportation costs. Each facility can capture roughly 10,000 metric tons of CO2 annually, which is significant but
energybiocharcarbon-sequestrationsustainable-agriculturecarbon-creditsclimate-technologyrenewable-resourcesHow one AI startup is helping rice farmers battle climate change
Mitti, a New York-based AI startup, is addressing climate change by helping rice farmers reduce methane emissions—a potent greenhouse gas generated in flooded rice paddies. The company uses AI-powered models that analyze satellite imagery and radar data to measure methane release from rice fields, enabling scalable monitoring without costly physical equipment. Mitti partners with nonprofits like the Nature Conservancy to train hundreds of thousands of smallholder farmers in India on regenerative, no-burn agricultural practices that lower methane emissions. These partnerships extend Mitti’s reach and allow it to verify and report on climate-friendly farming efforts on the ground. Mitti’s technology also supports a software-as-a-service (SaaS) model, offering measurement, reporting, and verification tools to third parties working with rice farmers to reduce emissions. The methane reduction projects generate carbon credits, which Mitti helps track and sell, sharing most of the revenue with farmers and their communities. This additional income can improve farmers’ profitability by about 15%, a significant boost for small
AIagriculture-technologymethane-reductionclimate-changecarbon-creditssoftware-as-a-serviceenvironmental-sustainabilityFrontier buys $31M worth of antacids for the ocean
Frontier, a carbon removal clearinghouse founded by companies including Google and Shopify, has purchased 115,208 metric tons of carbon removal credits from the geoengineering startup Planetary. This marks Frontier’s first agreement to remove carbon by enhancing ocean alkalinity, a method that involves increasing the ocean’s natural alkalinity to absorb more carbon dioxide. The deal prices carbon removal at $270 per metric ton, although Planetary aims to reduce this cost to under $100 per metric ton in the future. Ocean alkalinity enhancement has the potential to remove over 1 billion metric tons of CO2 annually, offering a significant tool in combating climate change. The oceans have historically absorbed large amounts of atmospheric CO2, which has slowed global warming but also increased ocean acidity, threatening marine life. Since the industrial revolution, ocean pH has dropped from about 8.2 to 8.1, representing a 30% increase in acidity due to carbonic acid formation when CO2 reacts with seawater. Planet
energycarbon-removalocean-alkalinity-enhancementclimate-change-mitigationgeoengineeringenvironmental-technologycarbon-creditsClimeFi Co-Founder Paolo Piffaretti On The Growing CDR Asset Mgmt Opportunity - CleanTechnica
ClimeFi, co-founded by Paolo Piffaretti, is a company focused on addressing the complexities and risks in the carbon dioxide removal (CDR) market by providing corporate buyers with tools, insights, and guarantees to integrate durable carbon removals into their climate strategies. Unique in its buyer-centric business model, ClimeFi charges fees solely to buyers and not suppliers, ensuring alignment with buyers' interests while emphasizing durable CDR solutions. This approach aims to maximize the delivery probability of CDR credits and offers a high level of market sophistication. Looking ahead, ClimeFi aims to establish itself as the leading CDR asset manager within three years, particularly by facilitating compliance markets such as International Transfer Mitigation Outcomes (ITMOs) under the Paris Agreement. The company is innovating with technology to enhance market transparency, exemplified by its recently launched Analyst Rating system inspired by financial sector analysis, designed to support portfolio management decisions. Piffaretti highlights unresolved challenges in the sector, notably the need
energycarbon-removalclimate-strategyclean-energycarbon-creditssustainabilitygreen-transitionThe Plan to Turn the Caribbean’s Glut of Sargassum Into Biofuel
The Caribbean, particularly Mexican coastal areas like Cancun and Quintana Roo, is facing an unprecedented influx of sargassum seaweed, with forecasts predicting up to 400,000 tons washing ashore this summer. This seaweed not only mars the region’s beaches and tourism appeal but also releases harmful gases such as hydrogen sulfide, methane, and carbon dioxide as it decomposes, negatively impacting local economies by an estimated 11.6% GDP drop in affected areas. The causes of these massive algal blooms remain uncertain, with potential factors including warmer ocean temperatures, increased agricultural runoff, and shifting ocean currents. To address this environmental and economic challenge, experts propose converting the sargassum into biofuel and construction materials. Engineer Miguel Ángel Aké Madera highlights that processing 500 tons of sargassum daily could produce 20,000 cubic meters of biogas, roughly equivalent to the daily fuel demand of an average Mexican gas station. This approach is favored over creating consumer products due
energybiofuelbiomasssargassumrenewable-energybiogascarbon-creditsEU’s Reliance on Carbon Credits Risks Making a "Paper Tiger" of Europe’s Climate Efforts - CleanTechnica
The European Commission’s commitment to a 90% emissions reduction target by 2040 aims to provide certainty for key industries such as carmakers, airlines, shipping, and fuel producers, supporting Europe’s green transition. However, the Commission’s allowance for countries to use carbon credits (offsets) to meet this target has drawn criticism from Transport & Environment (T&E). T&E warns that relying on offsets undermines the integrity of Europe’s climate efforts, contradicts previous commitments, and risks weakening climate regulations. They highlight that over 90% of rainforest carbon offsets certified by the largest certifier have been found worthless, and offsets reduce incentives to invest in proven green technologies. T&E emphasizes that a robust 2040 target is vital not only for climate goals but also for Europe’s energy security, potentially saving billions of euros annually on fossil fuel imports. Achieving the target will require resisting pressures to weaken related policies, such as the 2035 zero-emission car mandate and the ETS2 carbon
energycarbon-creditsemissions-reductionclimate-policyEuropean-Green-Dealfossil-fuel-importsgreen-technologiesCnaught wants to make carbon credits easy for businesses small and large
energycarbon-creditssustainabilityclimate-changemarket-solutionssmall-businessescarbon-market