Source: NYT > Business
Microsoft's decision to pause its $1 billion commitment to carbon removal credits exposes a fundamental problem: the economics of the sector don't work at scale. Voluntary corporate purchases alone cannot sustain companies trying to commercialize capture technology. Microsoft was the largest buyer in an immature market. Its exit removes the primary customer base that allowed startups to operate without proven unit economics or clear paths to profitability. The industry now faces a harder question—whether carbon removal requires direct government procurement and carbon pricing mandates to survive, rather than relying on ESG-motivated tech spending.