Climate Asset Management’s U.S. Forestry Project Secures Long-Term Carbon Credit Offtake Agreement with Microsoft

A multi-year offtake agreement with Microsoft for nature-based carbon removal credits from Climate Asset Management (CAM) Natural Capital Fund I’s first U.S. forestry asset has been finalised.

A multi-year offtake agreement with Microsoft for nature-based carbon removal credits from Climate Asset Management Natural Capital Fund I’s first U.S. forestry asset has been finalised, by CAM’s operating partner EFM.

The offtake agreement with Microsoft aims the delivery of up to 700,000 credits through 2035 from the recently acquired property in Washington State’s Olympic Peninsula that is being transitioned to climate-smart forest management. This agreement directly supports Microsoft’s commitment to becoming carbon negative by 2030 and underscores the growing importance of long-term carbon procurement as part of corporate climate strategies and recognising the role of Improved Forest Management (IFM) as a credible carbon removal pathway.

The project aims to generate over one million tonnes of additional carbon removals over the next decade. In addition to climate mitigation, the project seeks to improve timber stocks, forest resilience, biodiversity, and community partnerships — including with local tribal stakeholders. Following another long-term carbon contract negotiated in parallel with the asset acquisition last year, this long-term carbon purchase agreement with Microsoft leads to securing commitments for the purchase of substantially all the carbon removals that will be generated over the project life.

EFM, CAM’s Natural Capital Fund I’s operating partner and a leading forest management and investment firm, arranged the two long-term offtake agreements and is overseeing on-the-ground asset and carbon project delivery. EFM’s IFM approach focuses on sustainable forestry practices, such as lengthening tree rotation periods, reducing logging impact, and promoting selective harvesting — all of which contribute to greater carbon storage and healthier ecosystems.

James Bullen, Head of Asset Management at Climate Asset Management, commented:

“We are pleased that our climate-smart forestry asset in the Olympic Peninsula has now achieved another long-term offtake agreement, significantly de-risking the carbon element of our project. Alongside enhancing the asset’s risk-return profile, this agreement demonstrates the commercial viability of a diversified climate-smart approach in managing forestry assets, combining revenue from traditional forest products with carbon credits, as well as conservation easements. Such management approaches aim to improve forest health — including biodiversity, water and soil quality — while also providing community benefits, all well aligned with NCF’s impact objectives.”

This announcement marks a significant step in demonstrating how long-term carbon offtake agreements can underpin institutional investment in nature-based climate solutions — delivering measurable climate impact alongside financial value.