Tech giant Microsoft (MSFT) appears to have no interest in putting the brakes on its carbon removal efforts anytime soon. The conglomerate this year ramped up its deal-making in this regard, even as Big Tech’s deeper foray into artificial intelligence continues to raise eyebrows about their energy usage and carbon emissions.
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Microsoft is now nearing the purchase of 50 million carbon removal credits from projects using either technology-based methods, such as direct air capture, or nature-based approaches like tree planting, to reduce greenhouse gases in the atmosphere. This is according to data from Allied Offsets seen by the Financial Times. One credit is equivalent to one metric ton of CO₂ removed from the atmosphere.
Microsoft Doubles Down on Deal-Making
Microsoft has further widened its leading position in this market. It is now responsible for about 80% of all credits obtained from projects using the technology-based approach to carbon removal.
Furthermore, during the first six months of this year, Microsoft secured 92% of all credits purchased from technology-based projects. The productivity software and cloud company is also the source of about 84% of all spending on the $9.5 billion credit market.
Data also reveals that Microsoft’s competitors, Amazon (AMZN) and Alphabet (GOOG), are nowhere near its level. The two companies represent only 0.7% and 1.4%, respectively, of the credits purchased from projects using either method.
Microsoft’s growing dominance can be attributed to its strategic deal-making with a diverse range of projects. Recently, the company secured a deal with Houston-based firm Vaulted Deep to store human waste underground.
It also recently entered into another agreement with Norway’s biggest waste-to-energy plant operator, Hafslund Celsio, to capture greenhouse gases by burning waste materials. This adds to the tech giant’s recent collaboration with Re.green, a Brazilian startup, to help restore parts of the Amazon and Atlantic rainforests, in exchange for more carbon credits.
Can Microsoft Stock Reach $1000?
Turning to Wall Street, Microsoft’s stock has a Strong Buy consensus recommendation based on 32 Buy and one Hold ratings by Wall Street analysts.
The average MSFT price target by analysts over the past three months is $627.67. This indicates a 24.21% growth potential from its current level.
