Microsoft Corp. and Rubicon Carbon have entered into a long-term agreement to purchase 18 million tonnes of nature-based carbon removal credits, marking one of the largest single corporate commitments in the voluntary carbon market to date.

The agreement involves a series of 15- to 20-year offtake contracts focused on afforestation, reforestation and revegetation projects globally.

Microsoft’s commitment is expected to provide critical long-term funding for carbon removal initiatives that often struggle to secure upfront capital.

“Addressing climate change requires more than good intentions—it requires capital deployment at scale,” said Rubicon Carbon CEO Tom Montag. “This collaboration serves as a blueprint for how the financial sector can meet the urgency of the moment.”

The deal reflects Microsoft’s growing role in advancing climate finance strategies as the tech giant seeks to become carbon negative by 2030. It also emphasizes the company’s focus on high-quality, science-based carbon removal credits.

Focus on Long-Term Integrity and Investment

“This agreement demonstrates how science, finance and business model innovation can work in concert to scale affordable and high-quality climate solutions,” said Brian Marrs, senior director of energy & carbon removal at Microsoft.

As part of the partnership, Rubicon Carbon has co-developed an evaluation framework with Microsoft that aligns with the company’s quality criteria and incorporates Rubicon’s due diligence protocols.

Rubicon will oversee the selection and monitoring of ARR projects, emphasizing those with strong growth potential but limited access to funding.

Remote sensing and other advanced technologies will be used to ensure the integrity of the credits.

Jim Coulter, founding partner of TPG and managing partner of TPG Rise Climate, called the deal “an important milestone” for Rubicon, which launched three years ago with a mission to scale high-quality carbon solutions.

The agreement is widely viewed as a bellwether for increased corporate participation in carbon markets and a potential catalyst for private investment in large-scale environmental projects.

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