Published 6 March 2025
With funding from Terra Natural Capital, the 20,000-hectare Panna afforestation project in the Madhya Pradesh State, India, will remove three million tonnes of carbon while providing significant benefits to local communities.
Climate Impact Partners today announced a new deal with Terra Natural Capital to deliver long-term finance to the Panna afforestation project in India, from which Microsoft will purchase 1.5 million tonnes of verified carbon removal credits over 30 years, representing 50% of the project’s output.
The project brings together Climate Impact Partners’ project development expertise, finance from Terra Natural Capital, and long-term buyer commitment from Microsoft. The Panna afforestation project is Microsoft’s largest carbon removal project in the APAC region and first in India.
Following three years of due diligence and pilot activities, conducted by Climate Impact Partners’ project development team, and third-party buyer and investor assessments, the project has demonstrated a strong commitment to quality. Working with local implementation partners, up to 11.6 million mixed native trees will be planted across 20,000 hectares of farmer and community lands – an area bigger than Washington DC. To date, over 1.2 million trees have been planted across 100 communities.
The project offers significant benefits including: Economic Empowerment: Farmers will directly benefit from a share of carbon credit sales and income generated from the sale of fruit and medicinal produce from the trees planted.
Sustainable Agriculture: Training programs on climate-smart agricultural techniques will be held to help enhance long-term yields.
Water Conservation: The project has implemented large-scale water infrastructure, including ponds, borewells, and drip irrigation systems to support tree growth whilst capturing and conserving water.
Improved Biodiversity: Planting will focus on native species intended to help enhance biodiversity and attract butterfly and bird species back to currently degraded lands.
Sheri Hickok, CEO, Climate Impact Partners commented: “We are incredibly proud that Microsoft, a company that continues to demonstrate bold, climate-responsible leadership, is supporting Panna, a project developed by our expert team. By securing a long-term supply of high-quality carbon credits, this model empowers companies like Microsoft to meet their ambitious climate targets, drive growth in the carbon removal market, and bring benefits to communities most impacted by climate change. Panna exemplifies how companies can help scale large-scale carbon removal infrastructure.”
Brian Marrs, Senior Director Energy Markets, Microsoft said: “At Microsoft, we believe that high-quality, nature-based solutions are vital to addressing climate change. Panna forms an important part of our growing portfolio of carbon removal projects – our first in India and largest in the APAC region. The collaboration with Climate Impact Partners helps to ensure that millions more trees are planted, more carbon is removed from the atmosphere, more jobs are created, and more finance flows back to local communities.”
Erica Vertefeuille, Managing Director, Terra Natural Capital said: “We are excited to work with Climate Impact Partners to realize large-scale nature-based carbon removal projects like Panna. This transaction reflects the power of collaboration between trusted project developers, corporate demand, and innovative finance to unlock climate impact. We recognize that access to project finance is a critical need for the carbon removal market to scale and are committed to providing long-term capital that will accelerate project development and empower corporates to achieve their climate targets.”
The project uses Verra’s latest Afforestation, Reforestation and Revegetation Methodology – VM0047 – approved for the ICVCM’s (Integrity Council for the Voluntary Carbon Market) CCP (Core Carbon Principle) label. It is rated A under BeZero’s ex-ante rating and will be verified to the Climate, Community and Biodiversity Standard to monitor for co-benefits.
Notes to editors:
About Climate Impact Partners
Climate Impact Partners is a leader in developing and delivering high-quality, high-impact carbon market solutions for climate action. For more than 25 years, the company has worked with climate-leading businesses to support more than 600 carbon removal and reduction projects in 56 countries. With a focus on helping to transform the global economy, improve health and livelihoods and restore a thriving planet, Climate Impact Partners develops and delivers the highest quality carbon-financed projects. It creates and manages carbon credit and energy attribute certificate portfolios that enable its clients to offset emissions they can’t yet reduce, put a price on carbon to incentivize change, and meet ambitious climate goals. Climate Impact Partners builds on the expertise, integrity, and innovation of two companies that have led the voluntary carbon market – Natural Capital Partners and ClimateCare.
Learn more at www.climateimpact.com
About Terra Natural Capital
Terra Natural Capital is an investment business committed to delivering innovative financing for climate solutions. As a leading provider of project financing for carbon removal and nature restoration, our mission is to provide institutional capital to support the development of large-scale, high-impact carbon credit and natural capital assets globally. Learn more at www.terranaturalcapital.com