By Gerelyn Terzo, Global AgInvesting Media
Portland, Oregon-based forest investment firm EFM has expanded its Big Tech footprint. In a deal underscoring the urgency of climate action, EFM has inked a multi-year offtake agreement with Microsoft in which the technology leader will procure nature-based carbon removal credits and make a strategic investment in EFM’s forestry fund, the size of which the companies are keeping close to the vest. Through the partnership, Microsoft will gain access to up to 3 million nature-based carbon removal credits from EFM’s investment platform.
Initially, Microsoft is poised to scoop up up to 700,000 carbon credits over the next decade from a 68,000-acre property under EFM’s stewardship, situated within Washington State’s picturesque Olympic Peninsula. EFM intends to transition this significant land holding to climate-smart forestry practices, thereby boosting its capacity to capture and sequester atmospheric carbon.
Beyond this initial carbon credit purchase, Microsoft’s Climate Innovation Fund (CIF) has also invested in EFM Fund IV, whose strategy is to attract $300 million for the purpose of scaling climate-conscious forestry initiatives across the U.S. This investment positions the tech leader to secure a future supply of up to 2.3 million additional high-quality carbon credits, further fortifying its commitment to carbon removal. The collaboration signals a significant acceleration in the deployment of capital towards forest management projects.
EFM CEO Bettina von Hagen stated, “Microsoft’s support marks a pivotal step in accelerating support for high-quality improved forest management projects. Their leadership sets a strong precedent for the carbon market and reinforces the importance of natural forests as a scalable natural climate solution in the U.S. With their support, we see Fund IV growing and producing significant climate benefits alongside financial value for its investors.”
Microsoft Senior Director of Energy & Carbon Removal Brian Marrs commented, “Microsoft recognizes the important role of high-quality, nature-based solutions in meeting our Carbon Negative by 2030 goals. Our collaboration with EFM is a significant step towards unlocking the value of the latest scientific advancements in improved forest management as a carbon removal pathway. We are proud to contribute to climate-smart forest management in Microsoft’s own backyard on the Olympic Peninsula.”
EFM’s unique approach to managing forest assets is distinguished by its ability to diversify revenue streams from forests to encompass carbon credits and the implementation of conservation easements in addition to conventional timber harvesting practices. EFM Fund IV has set its sights on acquiring forest properties in the Western U.S. and exploring other domestic markets. The goal is to use climate-smart management to create strong returns for investors while benefiting local communities. The fund aims to boost the carbon storage capacity of U.S. working forests, supporting their long-term health and the economic stability of the communities that depend on them.
For its part, Microsoft’s investment is expected to establish a new benchmark for IFM carbon projects, highlighting their potential as effective and scalable solutions in the pursuit of climate mitigation. The agreement reflects a growing appreciation for the crucial part that forests can play in tackling the climate crisis, potentially catalyzing further investment and innovation within this essential domain.
In addition to Microsoft, EFM also recently partnered with Meta Platforms for a carbon-removal-credit based climate-smart forestry initiative in Washington State, as GAI News reported.
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