This Top Warren Buffett Stock Is Helping Microsoft Solve a Big Problem

Carbon dioxide emissions are a big problem. They're a contributing factor to climate change and global warming. It's leading companies worldwide to work hard to reduce their emissions and prevent the rise in global temperatures from exceeding 1.5 degrees Celsius by 2050. That's the level many fear would cause more risks to natural and human systems.

1PointFive Energy, a subsidiary of oil giant Occidental Petroleum (NYSE: OXY), is one of the many companies working toward solutions to prevent the worst impacts of climate change. Occidental, one of Warren Buffett's top holdings, is developing the first of many direct air capture (DAC) systems to pull carbon dioxide from the atmosphere and sequester it underground. The company recently signed a landmark agreement to sell carbon removal credits to (NASDAQ: MSFT), which will help the tech titan reach its climate goals.

Microsoft wants to be a good corporate citizen. The technology company has committed to becoming carbon-negative by 2030. It has taken several steps to reach that ambitious goal. It recently signed the biggest-ever renewable energy power purchase agreement (PPA) with Brookfield Renewable (NYSE: BEPC)(NYSE: BEP). The deal will see Brookfield deliver over 10.5 gigawatts (GW) of new renewable energy capacity to Microsoft in the 2025 to 2030 timeframe. That's almost eight times larger than the biggest corporate PPA ever signed. It also added to the roughly 1 GW Brookfield is already delivering to Microsoft. That deal will help accelerate Brookfield's development pipeline while putting Microsoft closer to achieving 100% of its power needs from zero-carbon energy by the end of the decade, even as its power consumption accelerates due to the massive needs of cloud computing and AI.

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Source Fool.com