Microsoft looks to diversify carbon portfolio with mineral-based removal credits

Microsoft, one of the world's largest investors in tech carbon removal technology, is looking to diversify its carbon credits portfolio with mineral-based removal credits, said Lucas Joppa, the company's chief environmental officer.

Joppa, who was speaking at the Climeworks Direct Air Capture Summit 2022 held in Zurich June 30, said he would like to see more enhanced weathering and mineral credits in Microsoft's portfolio but also gain more experience with all types of carbon removals currently available.

Microsoft's carbon purchase strategy is also becoming more global in terms of credits' geography and it's shifting towards the signature of multiyear contracts as a way to increase efficiency, Joppa told delegates at the summit.

"We started to play more aggressively in the multi-year off taking. This gives us price certainty and volume certainty, which means that we have a better planning," Joppa said.

Scale

According to Joppa, the 'real big problem' that the tech carbon removal sector is facing currently is the one of scale. More supply needs to be brought to the market and quickly. Price transparency will follow as a priority only after more supply is made available, he said.

"In the early stages [of the market] the focus needs to be on volume, and then price will follow. Price can't be the signal to tell us whether we should enter the market or not," Joppa told delegates.

While waiting for more tech removals in the market, corporate should start 'getting thing going' with other nature-based removals, Joppa said.

Microsoft is the largest offtaker of Climeworks' Direct Air Capture carbon credits so far, with Strike and Spotify among other buyers.