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Microsoft Cuts Carbon Removal Purchases by 80% Amid AI Demand

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Microsoft’s latest sustainability report says emissions rose 25% last year as AI-driven electricity demand outpaced cleaner-solution rollout. After reports that some carbon removal purchases were paused for financial reasons, Microsoft said programs were not ended and changes reflected disciplined approach. Even with this retreat, it remains the largest buyer, near half of 2026 voluntary carbon removal transactions, as the market is down sharply versus 2025.

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