How Microsoft’s Partnership with Varaha Advances Durable Carbon Removal

Microsoft has taken a decisive step in combating climate change by partnering with India’s Varaha, agreeing to purchase over 100,000 tons of carbon dioxide removal (CDR) credits over the next three years. This substantial commitment highlights the growing importance of durable carbon removal solutions in corporate environmental strategies.

Durable carbon removal refers to technologies and methods that capture and store atmospheric CO2 for extended periods, preventing it from contributing further to global warming. As climate goals tighten, companies like Microsoft seek reliable partners who can deliver verified and lasting carbon offsets.

What Is Durable Carbon Removal and Why Does It Matter?

Carbon dioxide removal credits represent a commitment to take CO2 out of the atmosphere through technological or natural processes. Unlike conventional emission offsets, durable carbon removal emphasizes storing the captured carbon for decades or centuries, not just temporarily.

For example, while planting trees sequesters carbon, the permanence is uncertain due to risks like forest fires. Durable methods often include mineralization, biochar, or enhanced soil carbon storage—processes designed to lock carbon away stably.

Varaha, based in India, specializes in these types of durable solutions, making it an attractive partner for Microsoft’s ambitious sustainability goals.

How Does Microsoft’s Offtake Deal with Varaha Work?

Microsoft intends to buy over 100,000 tons of carbon dioxide removal credits from Varaha over three years. This deal will help Microsoft offset its carbon footprint while investing in emerging carbon capture ecosystems in India.

These credits are generated through verified carbon removal projects that meet rigorous environmental integrity standards. The partnership ensures that every ton of CO2 promised is credibly removed and permanently stored.

This approach contrasts with more traditional carbon offsetting schemes where impact verification and permanence can sometimes be uncertain or short-lived.

Why Choose Varaha?

• Verified durability: Varaha’s carbon removal credits focus on long-term storage, helping ensure lasting climate benefits.
• Local impact: Supporting projects in India blends global climate goals with regional socio-economic development.
• Scalability: The partnership model can expand to meet larger carbon removal demands over time.

When Should Companies Consider Purchasing Durable Carbon Removal Credits?

Durable carbon removal credits are increasingly relevant for companies aiming to go beyond short-term emissions reduction and genuinely neutralize past carbon releases.

Purchasing such credits helps:

• Meet net-zero targets by addressing legacy emissions
• Enhance credibility with stakeholders demanding verified impact
• Invest in innovative climate technology markets

However, durable removal credits are often more costly and complex than traditional offsets, so firms must balance their budget, sustainability goals, and risk appetite.

What Are the Trade-Offs of Durable Carbon Removal vs. Traditional Offsets?

Durability versus cost: Durable removal methods tend to be pricier due to technology, verification, and permanence assurance. Yet, the extended impact justifies the investment for many organizations.

Verification challenges: Traditional offsets have faced criticism for double counting and lack of transparency. Durable removal projects require stronger validation frameworks, which are still evolving.

Market maturity: Offsets from durable carbon removal are relatively new, resulting in less liquidity and fewer suppliers compared to standard offsets like forestry projects.

Analogies from Everyday Life

Think of carbon offsets like investing in a home security system. Traditional offsets are akin to alarm stickers on the window—some deterrent but no guarantee. Durable removal credits are comparable to installing a high-end safe room built to withstand external threats for years.

Both actions help protect valuables (climate), but one offers lasting security while the other provides temporary reassurance.

What Should Companies Do Next to Evaluate Their Carbon Removal Options?

Choosing the right carbon strategy requires clarity on corporate goals and understanding the trade-offs involved.

Consider these steps:

• Assess your current carbon footprint and identify legacy emissions needing compensation.
• Compare costs and benefits of durable removal versus traditional offsets.
• Evaluate suppliers’ verification and transparency credentials.
• Estimate the scalability and long-term reliability of the carbon removal method.

Microsoft’s Varaha deal serves as a strong example of integrating durable carbon removal into corporate climate strategy successfully.

Concrete Checklist to Choose Your Carbon Offset Approach

• Define your carbon neutrality timeline—short-term vs. decades-long impact
• Assess budget constraints against premium prices for durable solutions
• Review third-party verification for each offset provider
• Consider geographic and socio-economic co-benefits
• Test pilot purchases before committing to large volumes

By exercising due diligence and applying such a checklist, organizations can avoid pitfalls seen in past offset failures and maximize positive climate outcomes.

In summary, Microsoft's collaboration with Varaha signals a maturing market for durable carbon removal, underlining the shift toward higher-impact climate action commitments that are transparent, lasting, and accountable.