Collaboration aims to cut industrial emissions through innovative carbon capture technology and support long-term climate goals.
In a move aimed at accelerating climate action, Microsoft has signed a major carbon removal agreement with a British Columbia-based startup. This strategic partnership focuses on reducing emissions from pulp and paper mills, a sector often overlooked in traditional carbon reduction strategies. The deal supports Microsoft’s broader sustainability goals while helping to scale innovative carbon capture technology.
The agreement is with Carbon Removal Canada (CRC), a cleantech startup that specializes in carbon removal solutions for industrial operations. The startup uses advanced technology to capture and permanently store CO₂ emissions, particularly from sectors that are hard to decarbonize. This deal marks a major milestone for CRC and reinforces Microsoft’s commitment to achieving carbon negativity by 2030.
Pulp and paper mills produce significant emissions, especially in regions like British Columbia where the industry plays a large economic role. CRC’s system targets emissions from mill boilers and processing units, removing carbon at the source. The captured CO₂ is then stored underground in stable geological formations, ensuring it does not re-enter the atmosphere.
Unlike traditional carbon offsets, this approach results in permanent carbon removal, making it a more robust solution in the fight against climate change. Furthermore, CRC’s technology is modular and scalable. This makes it easier to integrate into existing infrastructure without requiring major changes to production processes.
Microsoft will purchase over 500,000 metric tons of carbon removal credits under this deal, making it one of the largest agreements of its kind in North America. Although financial terms were not fully disclosed, sources estimate the contract to be worth several million USD, indicating Microsoft’s strong investment in sustainable innovation.
This partnership comes at a time when global demand for reliable carbon removal solutions is rising. Many corporations have pledged net-zero or carbon-negative targets, yet struggle to find scalable ways to meet those commitments. By supporting startups like CRC, Microsoft not only offsets its own emissions but also helps build a stronger ecosystem for climate tech.
Both companies emphasize transparency and measurement. CRC uses third-party verification and monitoring tools to track every ton of CO₂ removed. Microsoft, in turn, integrates this data into its internal sustainability reporting systems, ensuring accountability throughout the process.
The broader goal is to accelerate commercial viability for emerging carbon removal technologies. Deals like this one signal a shift from experimental pilots to full-scale deployment. If successful, this model could be expanded to other sectors beyond pulp and paper, including steel and cement.
As climate risks intensify, corporate leadership in carbon removal becomes more urgent than ever. With this deal, Microsoft continues to lead by example—backing innovation, supporting clean industry, and investing in long-term environmental solutions.
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