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Microsoft has signed an agreement with Indian startup Varaha to purchase over 100,000 tons of carbon dioxide removal credits by 2029. The initiative focuses on converting cotton crop waste into biochar, which will be sourced from smallholder farmers in Maharashtra.

Varaha will develop 18 gasification reactors over 15 years, projected to remove over 2 million tons of CO2. This project aims to mitigate air pollution from burning crop residues and provide economic incentives for farmers.

The partnership aligns with Microsoft's goal of becoming carbon-negative by 2030, amidst rising emissions linked to its expanding AI and cloud operations. The biochar produced is expected to offer durable carbon storage while enhancing soil quality. The credits generated will adhere to strict standards for measurement and verification.