>There’s another aspect of carbon math that’s also essential. This is the difference between being “carbon neutral” and being “net zero.” While they sound similar, in fact they’re different.

>Given common usage, companies have typically said they’re “carbon neutral” if they offset their emissions with payments either to avoid a reduction in emissions or remove carbon from the atmosphere. But these are two very different things. For example, one way to avoid a reduction in emissions is to pay someone not to cut down the trees on the land they own. This is a good thing, but in effect it pays someone not to do something that would have a negative impact. It doesn’t lead to planting more trees that would have a positive impact by removing carbon.
In contrast, “net zero” means that a company actually removes as much carbon as it emits. The reason the phrase is “net zero” and not just “zero” is because there are still carbon emissions, but these are equal to carbon removal. And “carbon negative” means that a company is removing more carbon than it emits each year.
While we at Microsoft have worked hard to be “carbon neutral” since 2012, our recent work has led us to conclude that this is an area where we’re far better served by humility than pride. And we believe this is true not only for ourselves, but for every business and organization on the planet.

>Like most carbon-neutral companies, Microsoft has achieved carbon neutrality primarily by investing in offsets that primarily avoid emissions instead of removing carbon that has already been emitted. That’s why we’re shifting our focus. In short, neutral is not enough to address the world’s needs.

>While it is imperative that we continue to avoid emissions, and these investments remain important, we see an acute need to begin removing carbon from the atmosphere, which we believe we can help catalyze through our investments.

> Solving our planet’s carbon issues will require technology that does not exist today. That’s why a significant part of our endeavor involves putting Microsoft’s balance sheet to work to stimulate and accelerate the development of carbon removal technology. Our new Climate Innovation Fund will commit to invest $1 billion over the next four years into new technologies and expand access to capital around the world to people working to solve this problem. We understand that this is just a fraction of the investment needed, but our hope is that it spurs more governments and companies to invest in new ways as well.

This is one of the most exciting and potentially impactfull announcements. My biggest issue with companies that make a big deal about being "carbon neutral" and "carbon offsets" is that many times it is "voodoo accounting" in which they pay money to another company which claims to have prevented some carbon emission in an unaccountable developing country. Basically, these carbon fees just are another form of indulgences in which rich people pay money to be able continue their sins while feeling good about themselves.

However, "carbon removal" is a game changer. Based on human nature, I do not believe we will be able to change behavior enough to save ourselves. I think our only hope of preserving our civilization is with carbon removal technology.

That is why I am so glad that Microsoft is specifically focusing on this. If other large companies did this, I think there is a good chance that we could innovate our way out of the climate change crisis.