Rubicon Carbon has signed a long-term agreement to supply two million high-quality Afforestation, Reforestation and Revegetation (ARR) carbon credits to Microsoft over a nine-year period, marking a major nature-based carbon removal deal in East Africa.
The credits will be delivered through 2035 and sourced from Kijani Forestry’s Smallholder Farmer Forestry Project in northern Uganda, one of the first initiatives approved under the country’s Climate Change Mechanisms Regulations. The project is the first to advance under a broader framework between Rubicon Carbon and Microsoft, which enables the purchase of up to 18 million tonnes of high-quality carbon removal credits.
The framework is intended to expand access to capital for carbon removal projects while simplifying long-term contracting between buyers and developers.
“This project demonstrates how structured finance can unlock scale in nature-based removals,” said Tom Montag, chief executive of Rubicon Carbon. “By providing long-term capital to Kijani Forestry’s project, we’re helping deliver climate impact while expanding economic opportunities for the communities pivotal to building and preserving these ecosystems.”
Kijani Forestry is among the largest employers in northern Uganda, with more than 600 full-time staff, and works with over 50,000 smallholder farmers to establish income-generating woodlots on degraded land. Around 30 million trees have been planted to date, with the initiative expected to increase household incomes by more than 600% per acre planted.
The offtake agreement allows farmers to begin earning income from future carbon revenues within a year of planting. As the trees mature, farmers can also generate additional income through sustainable timber and charcoal production, reducing pressure on natural forests and supporting ecological recovery.
“Working with Rubicon Carbon enables us to reach more farmers, restore more land, and accelerate climate impact,” said Quinn Neely, co-founder and chief executive of Kijani Forestry. “This collaboration demonstrates what is possible when multi-year finance reaches communities on the frontlines of climate change. We are also grateful for the leadership and continued support of the Ministry of Water and Environment, whose commitment to sustainable land use has helped make this work possible.”
Phillip Goodman, director of carbon removal at Microsoft, said the company was “pleased to support Kijani’s work in strengthening farmer livelihoods while restoring ecosystems in northern Uganda,” adding that the framework with Rubicon Carbon “streamlines the contracting process, while ensuring project quality and unlocking financing for nature-based removals.”
