Baker McKenzie Advises Terra Natural Capital on Microsoft’s Panna Afforestation Project Carbon Credit Deal.
Baker McKenzie has advised Terra Natural Capital in a landmark deal with Climate Impact Partners, securing long-term finance for the Panna afforestation project in India. This initiative will see Microsoft purchasing 1.5 million tonnes of verified carbon removal credits over 30 years, representing 50% of the project’s total output.
A Groundbreaking Afforestation Initiative
The Panna afforestation project is set to plant up to 11.6 million mixed native trees across 20,000 hectares of community and farmer lands in India, an area larger than Washington D.C. To date, more than 1.2 million trees have already been planted across 100 communities.
This large-scale project aims to make a significant environmental impact by generating carbon removal credits through afforestation. Microsoft’s commitment to purchasing these credits is part of its broader climate strategy to help meet ambitious sustainability goals.
Due Diligence and Project Development
After three years of due diligence and pilot activities, Climate Impact Partners’ project development team, along with third-party buyer and investor assessments, confirmed that the Panna project demonstrates a strong commitment to quality. This careful, transparent approach is crucial in building long-term trust in nature-based solutions like afforestation.
The purchase of 1.5 million tonnes of carbon credits by Microsoft highlights the growing importance of corporate climate responsibility. The company’s commitment to the Panna project supports the scaling of nature-based carbon removal infrastructure while helping companies meet their own sustainability goals.
Sheri Hickok, CEO of Climate Impact Partners, emphasized the deal’s significance: “We are incredibly proud that Microsoft, a company that continues to demonstrate bold, climate-responsible leadership, is supporting Panna, a project developed by our expert team. This model empowers companies to meet their ambitious climate targets and scale the carbon removal market, all while benefiting communities impacted by climate change.”
Erica Vertefeuille, Managing Director at Terra Natural Capital, added, “We are excited to work with Climate Impact Partners to realize large-scale nature-based carbon removal projects like Panna. This transaction reflects the power of collaboration between trusted developers, corporate demand, and innovative finance to unlock climate impact.”
The Role of Collaboration in Scaling Climate Solutions
The Panna project exemplifies the power of collaboration between corporate buyers, trusted project developers, and innovative financing in driving real climate impact. As the carbon removal market grows, securing long-term financing becomes critical to scaling such projects.
This deal highlights how corporate demand for carbon credits can catalyze the development of large-scale environmental projects, further supporting efforts to achieve global climate targets.
Baker McKenzie has advised Terra Natural Capital, led by Andrew Hedges, Global Chair of the firm’s Climate Change Group, included notable partners such as Philip Thomson (Energy & Infrastructure) and Luke Lightfoot (Banking), as well as senior associates Andrew Paget and Aimee Saunders, and associates Alex Tam and Ione Searle.
Andrew Hedges commented, “We’re pleased to have supported the Terra Natural Capital team on this deal with Climate Impact Partners, which exemplifies the growing importance of large-scale, nature-based carbon removal projects in achieving global climate targets. Our involvement underscores our expertise in advising on complex, high-impact transactions that drive sustainability in the carbon finance market.”
Terra Natural Capital specializes in providing flexible financing to develop, de-risk, and scale high-integrity carbon projects. The company focuses on offering long-term access to carbon credits for both corporate and government clients. Their expertise lies in project finance, commodity markets, and the development of nature-based carbon removal projects aimed at achieving sustainability and decarbonization goals.
Baker McKenzie is a global law firm, founded in 1949, with over 40 offices worldwide. Known for providing high-quality legal services in areas like corporate law, litigation, and tax, the firm serves businesses, governments, and institutions. With a team of 13,000 professionals, Baker McKenzie is recognized for its innovative solutions, commitment to diversity, and leadership in sustainability.
