Rubicon Carbon has announced a major framework agreement with Microsoft to supply 18 million tonnes of high-quality carbon removal credits—one of the largest commitments ever made by a single buyer in the voluntary carbon market.
Under the terms of the agreement, individual transactions will be structured as 15- to 20-year offtake contracts. These long-term deals will support a global pipeline of Afforestation, Reforestation, and Revegetation (ARR) projects, significantly bolstering private investment in high-integrity carbon removal efforts.
The agreement underscores Microsoft’s expanding role in financing climate solutions. According to Rubicon Carbon, such long-term corporate commitments can unlock funding for carbon projects that may otherwise struggle to attract capital.
“Addressing climate change requires more than good intentions—it requires capital deployment at scale,” said Rubicon Carbon CEO Tom Montag. “This collaboration is a blueprint for how finance can respond to the climate crisis while delivering financial returns.”
Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, added: “This agreement demonstrates how science, finance, and innovation can converge to deliver scalable, high-quality climate solutions. Long-term project finance must underpin the voluntary carbon market.”
As part of the collaboration, Rubicon Carbon has developed a bespoke evaluation framework with Microsoft, aligning with the tech company’s science-based quality standards. Rubicon will lead sourcing, due diligence, and monitoring of global ARR projects, with a focus on scalable initiatives that face capital constraints. Quality assurance will be carried out by Rubicon’s in-house science team, using cutting-edge remote sensing technologies.
The agreement marks a milestone for Rubicon Carbon, which was launched by TPG three years ago to accelerate the development of high-integrity carbon markets. Jim Coulter, Founding Partner of TPG and Managing Partner of TPG Rise Climate, called the deal “a key step in delivering innovative, market-based climate solutions at scale.”
