ESG Today: Week in Review
This week in ESG news: Microsoft confirms largest global carbon removal purchase program “has not […]
Abatify Summary
**Microsoft’s massive carbon removal commitments prioritize high-permanence technical solutions over traditional nature-based offsets to mitigate long-term reversal risks.**
- The shift toward Engineered Carbon Removal (ECR) like Direct Air Capture (DAC) and biochar addresses the inherent volatility found in LULUCF-based sequestration.
- By funding early-stage removal technologies, these purchases accelerate the technical maturity of systems required for millivoltage-scale atmospheric carbon extraction.
- The focus on high-integrity CDR directly addresses the ICVCM 'Permanence' principle, ensuring that sequestered carbon remains isolated from the atmosphere for centuries.
**This move signals a market pivot toward premium, high-integrity credits that align with SBTi standards, potentially bifurcating the market between low-cost avoidance and high-cost removal.**
- Large-scale procurement validates the economic viability of Carbon Capture and Storage (CCS), influencing future pricing trajectories for ITMOs under Article 6.2/6.4.
- Corporate adherence to the SBTi Corporate Net-Zero Standard is driving demand for permanent removals to neutralize residual Scope 3 emissions.
- The high price floor established by these deals incentivizes institutional investment into high-transparency projects that meet ICVCM Core Carbon Principles (CCPs).