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Microsoft inks massive carbon removal deal powered by a paper mill

1. Microsoft is purchasing 3.7 million metric tons of carbon credits. 2. The carbon capture facility starts operations in 2028 and aims for carbon neutrality. 3. Microsoft generated 17.1 million tons of emissions in 2023, needing offsetting. 4. CO280's project captures significant biogenic carbon from pulp and paper mills. 5. Credits sold at $200/ton may reduce costs via Inflation Reduction Act tax credits.

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Why Bullish?

Microsoft's investment in sustainability enhances its brand image and aligns with future regulations, similar to past investments in renewable energy, which positively influenced market perceptions and stock performance.

How important is it?

The article addresses Microsoft's strategic investments in carbon credits, a core part of its public commitments to sustainability, critical for long-term shareholder value amidst increasing regulatory scrutiny on carbon emissions.

Why Long Term?

As climate initiatives often take years to yield tangible results, Microsoft's long-term strategy can improve investor confidence and stability in future earnings.

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