Key Takeaways
- Indigo Carbon PBC has signed a 12-year agreement with Microsoft covering the purchase of 2.85 million soil carbon credits.
- The credits will be generated through the Carbon by Indigo program, one of the largest U.S.-based regenerative agriculture carbon projects.
- This marks the third transaction between Indigo and Microsoft, building on earlier purchases in 2024 and 2025.
- The deal provides long-term financial incentives for farmers adopting regenerative practices across millions of acres.
- The agreement includes credits approved under the ICVCM Core Carbon Principles, reflecting a focus on high-integrity carbon removal.
Indigo Carbon Announces Large-Scale Soil Carbon Agreement with Microsoft
Indigo Carbon PBC has announced one of the largest soil carbon transactions to date under a 12-year agreement with Microsoft. As part of the deal, Microsoft will purchase 2.85 million carbon removal credits generated through the Carbon by Indigo program, the company’s U.S.-based regenerative agriculture initiative.
The transaction highlights the growing role of soil carbon projects in corporate carbon removal strategies and reinforces regenerative agriculture as a scalable pathway for high-integrity carbon dioxide removal.
Building on an Ongoing Partnership Between Indigo & Microsoft
This agreement represents the third carbon credit transaction between Indigo and Microsoft. Previous purchases included 40,000 tonnes in 2024 and 60,000 tonnes in 2025, reflecting a steadily expanding collaboration aligned with Microsoft’s goal of becoming carbon negative by 2030.
“Microsoft’s purchase highlights the transformative power of regenerative agriculture to support watersheds, farming communities, and global net-zero goals,” said Meredith Reisfield, Senior Director of Policy, Partnerships and Impact at Indigo. “Indigo is a proud catalyst of today’s soil carbon market, with a long-standing history of farmer collaboration and measurable impact.”
Since 2018, Indigo reports issuing nearly one million tonnes of carbon removal credits and contributing to the conservation of approximately 64 billion gallons of water through regenerative agriculture programs.
Supporting Farmers Through Regenerative Practices
The Carbon by Indigo program works with farmers to adopt practices such as cover cropping, reduced tillage, and improved nutrient management. These approaches are recognized by governments and climate organizations for their potential to remove significant volumes of carbon dioxide while also improving soil health, crop resilience, and water efficiency.
At a time of increasing economic and environmental pressure on farms, the agreement provides long-term, market-based incentives for growers. Indigo currently works with farmers across approximately eight million acres and has paid about $40 million to farmers across its programs to date, independent of government subsidies.
Focus on Credit Integrity and Durability
The credits delivered under this agreement are among the first soil carbon credits approved under the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles. Indigo’s credits are issued under the Climate Action Reserve’s Soil Enrichment Protocol (CAR1459) and supported by peer-reviewed research, remote sensing, and machine learning.
“Microsoft is pleased by Indigo’s approach to regenerative agriculture that delivers measurable results through verified credits and payments to growers,” said Phillip Goodman, Director of Carbon Removal at Microsoft. “Indigo is strengthening the carbon market through its commitment to project quality and high-integrity carbon removal.”
In addition to the protocol’s 100-year monitoring and reversal compensation requirements, Indigo has implemented further measures to reduce reversal risk across the 40-year durability term agreed with Microsoft.
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