Key Impact Points:
- One of the largest carbon removal deals in history: Microsoft enters a long-term offtake agreement with Rubicon Carbon for 18 million tonnes of carbon removal credits.
- Project financing at infrastructure scale: The 15- to 20-year offtakes will support global ARR (Afforestation, Reforestation, Revegetation) projects that typically lack access to capital.
- New framework for climate investment: The deal aims to attract more institutional capital by aligning science, finance, and project execution standards.
Rubicon Carbon has signed a landmark framework agreement with Microsoft to supply 18 million tonnes of high-quality nature-based carbon removal credits. Announced May 15, 2025, this marks one of the most significant single-corporate purchases in the voluntary carbon market.
Each transaction in the agreement will be structured as a 15- to 20-year offtake, targeting afforestation, reforestation, and revegetation (ARR) projects worldwide.
“Addressing climate change requires more than good intentions—it requires capital deployment at scale,” said Tom Montag, CEO of Rubicon Carbon. “This collaboration serves as a blueprint for how the financial sector can meet the urgency of the moment while also generating strong financial returns.”
Leveraging Finance to Scale Climate Impact
The deal highlights a strategic shift in carbon markets: long-term offtake agreements by major corporates are becoming essential to unlock private investment for high-integrity carbon projects.
“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, Energy & Carbon Removal at Microsoft.
The companies have jointly developed an evaluation framework that incorporates Microsoft’s rigorous scientific and quality criteria alongside Rubicon Carbon’s proprietary credit assessment standards.
Building the Pipeline for Future Carbon Solutions
Rubicon Carbon will source and evaluate ARR projects across the globe, focusing on those with limited funding but high scalability potential. The in-house science team at Rubicon will monitor project performance using advanced remote-sensing tools to ensure credit integrity throughout the multi-decade lifecycle.
“We launched Rubicon Carbon three years ago to catalyze high-quality carbon projects at scale,” said Jim Coulter, Founding Partner of TPG and Managing Partner of TPG Rise Climate. “This agreement with Microsoft represents an important milestone on our journey to deliver innovative, market-based solutions.”
This agreement signals growing institutional confidence in nature-based solutions as a core part of the climate transition portfolio.
Related Article: Why Investing in Nature-based Solutions Matters Now
