For many of Europe’s largest companies, climate commitments are already in place. Nearly 60% of the Euro Stoxx 50 plan to use voluntary carbon credits by 2030 as one part to meet their net zero goals and complement their climate strategies. On paper, this shows climate responsibility is being taken seriously.
But behind these long-term targets lies an underused asset: around €1 billion in voluntary carbon finance that’s been budgeted, but not yet mobilized. Most companies are not pursuing forward offtake agreements and instead appear to be delaying carbon credit purchases until closer to 2030. The result? Capital remains uncommitted, while access to the highest-quality projects becomes more competitive and future costs are likely to increase.
Delaying carbon credit procurement may seem convenient, but it carries real financial and strategic risk. As demand intensifies toward 2030, the price of high-quality credits is projected to rise sharply, especially for nature-based solutions. By postponing action, companies risk paying significantly more for the same outcomes, while competing for limited high-integrity supply. This isn’t just a climate issue. It’s a business one.
By committing to future purchases today through forward agreements, companies can:
Importantly, this doesn’t mean companies need to spend more. It’s about timing the commitment. The total financial outlay remains the same, just better structured to deliver both financial value and climate results.
To understand what a more strategic approach can look like, it helps to examine companies that are already acting ahead of the curve. US Big Tech, especially Microsoft provides a compelling example, not only in setting ambitious climate targets, but in aligning financial decisions to achieve them. Their model offers practical lessons for European firms looking to reduce long-term costs, secure quality supply, and deliver greater impact.
We analysed Microsoft, and in 2020, Microsoft committed to becoming carbon negative by 2030 and removing all historical emissions by 2050, an ambitious but meticulously planned goal. The company has since shaped the carbon removal landscape through early investment, strategic partnerships, and rigorous internal processes.
Here are key lessons for Euro Stoxx and DAX firms from US Big Tech approaches:
In 2020, Microsoft set a pioneering objective: to become carbon negative by 2030 and to remove all historical emissions by 2050. This commitment encompasses:
Reducing Scope 1 and 2 emissions by over 50%.
Addressing Scope 3 emissions, which have increased by 31% since 2020 due to the expansion of AI and cloud services .
Investing in carbon removal solutions to offset residual emissions.
Key Takeaway: Setting clear, measurable, and time-bound climate goals is essential. Such targets provide a roadmap for action and accountability.
Microsoft employs a multifaceted approach to carbon removal, integrating both nature-based and engineered solutions:
Nature-Based Solutions (NbS):
A 25-year agreement to restore 60,000 acres in the Southern U.S., planting over 35 million trees to sequester 7 million tons of CO₂.
A $200 million deal to restore parts of Brazil's Amazon and Atlantic forests, purchasing 3.5 million carbon credits over 25 years.
Acquisition of 1.4 million tons of carbon removal credits through reforestation of 25,000 acres of former coal mining lands in Appalachia.
Support for a Panama project planting 6 million trees across 10,000 hectares, aiming to sequester 3.2 million tons of CO₂.
Engineered Solutions:
An $800 million agreement to remove 6.75 million tons of CO₂ using Bioenergy with Carbon Capture and Storage (BECCS) technology .
A contract to capture and store up to 350,000 tons of CO₂ through ocean-based carbon removal over the next decade.
Key Takeaway: Diversification across geography, method, and risk profile builds resilience and optimizes outcomes.
Long-term commitments: Agreements like the 25-year deal, not only provide carbon credits but also support ecosystem restoration and community engagement.
Risk transparency: Microsoft expects project proponents to be transparent about risks and to have identified measures to mitigate them appropriately.
Key Takeaway: Early long-term partnerships and transparency are crucial for the success and scalability of carbon removal projects.
At the heart of Microsoft’s carbon removal strategy lies a commitment to scientific integrity and ecosystem resilience. The company doesn't just purchase credits — it invests in solutions that are durable, measurable, and regenerative.
All projects must:
Demonstrate net atmospheric carbon removal
Undergo independent scientific validation beyond existing market standards
Include robust social and environmental co-benefits, particularly around biodiversity and local livelihoods
Microsoft specifically targets biodiversity hotspots and key ecosystem areas, where the return on conservation investment is highest (Balmford et al., Science, 2002). Projects in these regions not only store carbon more effectively — they also protect critical habitats, stabilize water cycles, and build local climate resilience.
Key Takeaway: Carbon permanence and project integrity go hand in hand with biodiversity and community outcomes. The strongest investments are those that regenerate both the planet and its people.
Through its $1 billion Climate Innovation Fund, Microsoft accelerates the development and deployment of climate technologies:
Investments are made in both equity and debt, supporting a range of projects from early-stage innovations to scalable solutions .
Key Takeaway: Dedicated financial resources are vital for fostering innovation and scaling effective climate solutions.
Our goodcarbon analysis makes it clear: Europe’s largest companies are sitting on one billion in climate capital, yet current practices delay impact, inflate future costs, and risk underdelivering on environmental outcomes.
Microsoft offers a compelling alternative, one rooted in strategic foresight, early action, and full integration of climate objectives into core business planning.
For Euro Stoxx and DAX firms, acting now is a smart business move with catalytic potential. Rather than relying solely on spot purchases, Forward off-take agreements, allow companies to secure supply, lock in better pricing, and demonstrate true climate leadership.
The choice is clear: don’t wait and see—commit around your sustainability strategy.
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