Microsoft Partners with Indian Startup Alt Carbon for Major Carbon Removal Initiative
Breaking New Ground in Enhanced Rock Weathering Across Asia
In a pioneering move, Microsoft has committed to purchasing nearly 37,000 metric tons of carbon removal credits over three years from Alt Carbon, an innovative Indian startup.This marks Microsoft’s first enhanced rock weathering collaboration in Asia and underscores its commitment to advancing cutting-edge climate mitigation strategies on a global scale.
Scope and Commitments of the Collaboration
The contract specifies that alt Carbon will deliver 36,920 verified metric tons of CO2 removal credits by 2029 thru its Darjeeling Revival Project situated in eastern India. Microsoft also retains the option to increase purchases if project milestones related to delivery and verification are successfully achieved.
The Science Behind Enhanced Rock Weathering as a Climate Solution
Alt Carbon employs enhanced rock weathering-a natural process where finely ground basalt and other silicate minerals are dispersed over farmland. This accelerates chemical reactions that capture atmospheric carbon dioxide, transforming it into stable bicarbonates stored within soils and water bodies. The basalt is sourced from the Rajmahal Traps region and applied primarily across agricultural lands in West Bengal, where monsoon rainfall enhances these mineral-weathering reactions.
A Rigorous Path from Negotiation to Implementation
the partnership was forged after more than a year of detailed scientific assessments, due diligence procedures, and contract negotiations beginning in early 2025. Microsoft insisted on stringent monitoring, reporting, and verification (MRV) standards surpassing typical registry requirements-demanding greater openness and precise quantification methods for carbon capture.
Navigating Market Challenges with Verified Deliverables
The global market for carbon removal credits remains constrained despite numerous startups proposing solutions. Commercial-scale verified supply is scarce; thus buyers prioritize projects with proven track records. As noted by Sparsh Agarwal of alt Carbon: “While many suppliers exist today, only a handful have demonstrated verifiable results.”This scarcity intensifies competition among purchasers seeking dependable credit sources.
Alt Carbon’s Leadership in Issuing Enhanced Rock weathering Credits
- To date, Alt Carbon has issued close to 10,000 verified enhanced rock weathering credits-the largest volume worldwide using this method-and expects an additional 15,000 by year-end.
- Their operations cover two major projects across North Bengal: one dedicated exclusively to Japanese shipping company Mitsui OSK Lines; another larger initiative supplying Microsoft’s contracted volumes.
- The company partners with over 35,000 farmers managing roughly 80,000 acres of farmland.
- Their expansion now includes rice paddies alongside customary tea plantations previously targeted for treatment.
- This agreement’s credits will be registered via Isometric-a specialized registry developing methodologies tailored specifically for enhanced rock weathering projects.
The Growing Role of Emerging Markets in Global Climate Action
This deal exemplifies the rising influence of developers based in emerging economies within the carbon removal sector. Currently responsible for approximately 26% of total credit issuances-up sharply from just about 2% two years ago-these players are gaining trust as stricter verification protocols boost buyer confidence worldwide.
Diversifying india’s Expanding Climate Technology Landscape
This collaboration builds upon Microsoft’s prior investments targeting Indian startups focused on durable sequestration technologies-for example,a multi-year purchase agreement exceeding100 ,000 tonnes involving biochar removals developed by Varaha Technologies.
Alt Carbon also serves prominent procurement coalitions such as Frontier (supported by Googleand Stripe)and nextgen(backedby UBSand Boston Consulting Group),highlightingan institutional appetitefor rigorously verified removals originatingfrom India’s growing climate tech ecosystem.
A Visionary Approach Toward Scaling Impact Through Innovation & Infrastructure Advancement
Sparsh Agarwal envisions expanding their operational capacity fivefold within four-to-five years fueled by increasing demandfor crediblecarbonremovals globally.
The startuphas invested significantlyin proprietary MRV infrastructureincluding laboratories locatedin Bengaluruand Darjeelingthat analyze soil chemistry changes criticalto accurate measurement.
Lowering costs while improving precision remains essential asthey aimfor broader adoptionacross diverse agricultural landscapes throughout South Asia-and potentially beyond-in coming years.
“Developing robust verification capabilities is basic not only for scaling but also ensuring credibility,” says Agarwal regarding future growth prospects closely linkedwith technological advancements.”
