Indigo signs carbon credit agreement with Microsoft.

Indigo Carbon PBC announced the signing of a carbon credit purchase and sale agreement with Microsoft. The software company will purchase 2,85 million carbon credits over 12 years.

The credits will be generated by the Carbon by Indigo program, developed in the United States. The project highlights regenerative practices as a central tool for high-integrity carbon removal. This is the third agreement between the companies. The previous ones involved 40 tons in 2024 and 60 tons in 2025.

Regenerative practices have an estimated potential to capture more than 3,5 gigatons of CO2 equivalent per year. These practices also promote soil health, increase crop resilience and productivity, and strengthen local economies. In a scenario of water scarcity, these programs contribute to water conservation in rural communities.

According to Indigo, the contract creates significant financial incentives for producers who adopt or expand regenerative practices. The company works with farmers on 3,24 million hectares and has already paid approximately US$40 million to participants in its programs, without relying on government subsidies. According to the company, since 2018, the projects have saved 64 billion gallons of water and emitted nearly one million tons of carbon credits.

The agreement includes credits approved according to the Core Carbon Principles of the Integrity Council for the Voluntary Carbon Market. Indigo has already registered 927.296 credits in the Climate Action Reserve, under the Soil Enrichment Protocol, using remote sensing, machine learning, and independent scientific validation. The contract provides for additional measures to mitigate the risk of reversal during the agreed duration period.