Soil Gets Smart as Microsoft Joins Carbon Market

Tech giant buys 60,000 credits from Indigo Ag as digital verification gains ground

10 Jun 2025

Microsoft has purchased 60,000 soil carbon credits from Indigo Ag, in one of the largest US transactions of its kind, highlighting the role of digital tools in verifying carbon storage in farmland. The credits were certified by the Climate Action Reserve, a non-profit registry.

Indigo Ag uses satellite imagery, machine learning and crop modelling to estimate carbon captured in soils when farmers adopt regenerative practices such as cover crops and reduced tillage. The company said more than 75 per cent of revenues from credit sales are paid to farmers, turning sustainability measures into a direct income source. To date, its platform has helped sequester close to Imn tonnes of carbon dioxide and cut water runoff by billions of gallons.

For Microsoft, the deal forms part of its strategy to meet corporate climate goals. By choosing soil-based offsets, the company is supporting a technology that analysts say has improved its credibility in recent years after earlier criticism of weak standards.

"Investments like this accelerate the transition to sustainable farming while ensuring measurable climate impact," an Indigo spokesperson said.

Uncertainty remains around soil carbon permanence, since levels can change with weather or land use. But advances in modelling and independent audits are adding confidence, according to market experts.

The broader question is whether corporate demand will scale quickly enough to bring more farmland into the system. Companies are increasingly seeking nature-based offsets to complement direct emissions cuts, with agriculture viewed as an important potential supplier.

Indigo's agreement with Microsoft points to a shift in regenerative agriculture from experimental projects to a technology-enabled market. If demand rises, platforms linking farmers with corporate buyers could channel billions of dollars into rural economies while expanding carbon storage at scale.