Microsoft pauses carbon credit purchases, shaking market

Microsoft has halted new purchases of carbon removal credits, creating uncertainty in the nascent carbon market. The tech giant's retreat comes as AI growth and regulatory changes reshape future demand for offsets. Microsoft had been one of the largest buyers of carbon credits, aiming to become carbon negative by 2030. The pause affects suppliers and investors who relied on Microsoft's commitments to scale up carbon removal technologies. The decision reflects broader challenges in the voluntary carbon market, including concerns over credit quality and effectiveness. Microsoft stated it will focus on internal reductions and review its carbon removal strategy. The move signals a potential shift in corporate climate strategies amid evolving AI energy demands.