Microsoft's 2026 sustainability report shows a 25% year-on-year increase in greenhouse gas emissions, driven by the rapid expansion of AI data center infrastructure. The company paused its use of unbundled renewable energy certificates, opting instead to invest in new carbon-free power generation, which caused a near tenfold rise in Scope 2 emissions from purchased electricity. Microsoft still aims to be carbon negative by 2030 and is scaling its carbon dioxide removal portfolio to offset the gap. The company added 29 CDR projects in 2025 across 10 removal pathways, targeting over 45 million metric tonnes of removals over 30 years. It signed 10 to 15 year offtake agreements for engineered solutions like direct air capture and BECCS, including deals with BioCirc in Denmark and North Star in Canada. Microsoft is also assessing roughly 200 removal projects globally, using long-term contracts to help developers secure financing and bring emerging technologies to commercial scale.
