On January 19th Microsoft President Brad Smith, Microsoft Chief Financial Officer Amy Hood and Microsoft Ceo Satya Nadella announced Microsoft’s plan to achieve negative carbon emissions by 2030, along with a $1 billion climate innovation fund. Help accelerate the development of global carbon reduction, carbon capture and carbon elimination technologies.
Microsoft says net zero emissions have become a global goal, and those who can go faster and further afield need to do so. That’s why Microsoft today announced this ambitious goal and plan: to reduce and eventually eliminate Microsoft’s carbon footprint. The plans include that Microsoft will achieve negative carbon emissions by 2030 and that it will eliminate some of its carbon emissions from the atmosphere by 2050.
First, Microsoft will reduce Class I and Class II emissions to near zero around 2025 through the following measures.
By 2025, Microsoft will be 100% renewable, which means that all of our data centers, buildings, and campuses will have their total energy consumption converted from carbon generation to green energy.
In 2030, the global campus operating vehicles will be electrified.
Microsoft seeks zero carbon certification and LEED (Energy and Environmental Design Pioneer, Leadership in Energy) for the Silicon Valley campus and Phuket Bay campus modernization projects and Environmental Design Platinum certification.
Second, Microsoft will cut category III emissions by more than half by 2039 through the following new measures:
In July 2020, Microsoft’s current internal carbon tax policy will begin to cover the third category of emissions. The current carbon tax rate is $15 per metric ton and covers all category I and II emissions, as well as travel emissions from category III emissions. Unlike some other companies, Microsoft’s internal carbon tax is not a “shadow tax” that is calculated and not charged. Each of Microsoft’s departments will pay for it self-carbon emissions, which will be used to improve sustainability.
From July 2020, all of Microsoft’s business units will also pay an internal carbon fee for all Category 3 emissions. At first, the price per ton will be lower than the current cost of other emissions, but Microsoft will gradually raise prices in the future until all three types of emissions are priced the same. This will strengthen incentives across the company to reduce all three types of emissions and fund more work to reduce our own category III emissions and invest in carbon elimination activities.
By July 2021, Microsoft will begin implementing new procurement processes and tools to support and motivate suppliers to reduce these three types of emissions. Microsoft will work with suppliers to implement consistent and accurate reports and take effective measures to advance towards scientific goals.
Third, Microsoft will have more carbon emissions than carbon emissions by 2030. By 2050, Microsoft will eliminate all carbon that the company has emitted directly or through electricity since its inception in 1975. Microsoft will achieve this through a range of negative emission technologies (NNets), including afforestation and recycling forests, soil carbon sequestration, carbon capture and storage of bioenergy (BECCs), and direct air carbon capture.
By evaluating the NET attributes associated with the four criteria, Microsoft will determine its carbon elimination portfolio each year: 1) scalability; Given current technology developments and price factors, we will initially focus on natural solutions and plan to move to technology solutions between now and 2050.
In addition, Microsoft said it would invest in new carbon reduction and elimination technologies, promising to invest $1 billion in new technologies over the next four years to enable more people around the world to address the carbon problem. These funds will be used mainly in two main areas: the development of ongoing technologies accelerated through investment projects and debt financing, and new innovations through equity and debt capital investments.