Microsoft signs carbon removal deal with Alt Carbon, boosting India's role in climate tech

Microsoft has signed a carbon removal deal with Bangalore-based startup Alt Carbon, marking its first major carbon removal investment in India. The agreement, which followed over a year of scientific review and due diligence, focuses on enhanced rock weathering. Alt Carbon spreads crushed basalt on agricultural land, where it reacts with CO2 and locks it away as stable minerals. This method is less flashy than direct air capture but potentially more scalable and cost-effective, especially in countries with large farmlands like India. The deal signals that India is becoming a serious player in the carbon removal space. Alt Carbon's success in meeting Microsoft's strict verification standards could open the door for other Indian startups working on biochar, ocean alkalinity enhancement, and soil carbon sequestration. Enhanced rock weathering offers permanent storage, addressing the credibility issues that have plagued traditional carbon offsets. Microsoft's rigorous approach may also set new standards for how corporate buyers evaluate carbon removal suppliers. For Microsoft, this is part of its goal to become carbon negative by 2030. The company has already backed projects from Climeworks and various biochar initiatives, but this deal diversifies its supplier base into Asia. The financial terms were not disclosed, but carbon removal credits typically trade between $100 and $600 per ton, with enhanced rock weathering on the lower end. The real test will be whether Alt Carbon can deliver verified removals at scale and whether other Indian startups can replicate its success.