# Microsoft signs carbon removal deals with Indian startups

**Published:** 2026-06-12T02:11:44.498Z  
**Topic:** Microsoft taps Alt Carbon in sign of India’s growing role in carbon removal  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/06d0e497-f305-47c3-b475-27ffa10ece0f

Microsoft has secured carbon removal credits from India's Alt Carbon and Varaha, highlighting growing demand for verified removal projects in the Global South.

Microsoft announced two multi‑year agreements with Indian carbon‑removal firms, committing to buy roughly 137,000 metric tons of verified removal credits through 2029 [1][2]. The deals showcase the tech giant’s expanding portfolio of nature‑based solutions and underscore India’s emerging role in the nascent market.

**Key takeaways**
- Alt Carbon will supply 36,920 metric tons of enhanced rock‑weathering credits by 2029 [1].
- Varaha will provide over 100,000 metric tons of biochar‑based credits through 2029 [2].
- The projects use basalt spreading in West Bengal and cotton‑waste biochar in Maharashtra, respectively [1][2].
- Both startups have built extensive monitoring, reporting and verification (MRV) systems to meet Microsoft’s standards [1][2].
- Emerging‑market suppliers now account for about 26 % of global carbon‑removal issuances, up from roughly 2 % in 2022 [1].

## Alt Carbon enhanced rock weathering agreement  
Alt Carbon, a Bengaluru‑based startup founded in 2023, signed a three‑year contract to deliver 36,920 metric tons of carbon‑removal credits from its Darjeeling Revival Project in eastern India [1]. The technique involves spreading crushed basalt from the Rajmahal Traps across farmland in West Bengal, where rainwater and atmospheric CO₂ react to form stable bicarbonates. Microsoft required additional MRV measures beyond registry norms, prompting Alt Carbon to expand its data‑sharing and quantification protocols [1]. The company has already issued nearly 10,000 credits and expects another 15,000 by year‑end, working with more than 35,000 farmers across about 80,000 acres [1].

## Varaha biochar offtake expands portfolio  
In a separate deal announced earlier this year, Microsoft agreed to purchase more than 100,000 metric tons of carbon‑removal credits from Varaha, which converts cotton‑crop waste into biochar [2]. The biochar is applied to soil, sequestering carbon and reducing open‑field burning in Maharashtra. Varaha will develop 18 industrial reactors operating for 15 years, targeting a lifetime removal of over 2 million tons of CO₂ [2]. To satisfy Microsoft’s digital monitoring requirements, the startup built bespoke tracking systems for tens of thousands of smallholder farmers, a complexity noted by its CEO [2]. Varaha’s 2025 throughput of roughly 240,000 tons of biomass produced about 55,000 tons of biochar and generated 115,000 credits, with plans to double output in 2026 [2].

## Why it matters  
These agreements illustrate a shift toward verified, large‑scale carbon‑removal projects in the Global South, where supply has historically been scarce and verification limited [1]. By demanding rigorous MRV standards, Microsoft is pushing Indian developers to build robust measurement infrastructure, potentially lowering costs and increasing confidence for other corporate buyers. As emerging‑market issuances rise to roughly a quarter of global credits, the deals signal growing investor and corporate interest in diversified, durable removal pathways such as enhanced rock weathering and biochar [1][2]. Continued scaling will depend on the ability of startups like Alt Carbon and Varaha to meet delivery milestones and maintain transparent verification, shaping the future of corporate climate commitments.

## Sources
1. TechCrunch — [Microsoft taps Alt Carbon in sign of India’s growing role in carbon removal](https://techcrunch.com/2026/06/11/microsoft-taps-alt-carbon-in-sign-of-indias-growing-rile-in-carbon-removal/)
2. TechCrunch — [Microsoft taps India’s Varaha for durable carbon removal offtake | TechCrunch](https://techcrunch.com/2026/01/15/microsoft-taps-indias-varaha-for-asia-first-durable-carbon-removal-offtake/)

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Cite as: TrendWatcher, "Microsoft signs carbon removal deals with Indian startups", https://www.trendwatcher.in/article/06d0e497-f305-47c3-b475-27ffa10ece0f