Microsoft signs deal with US’ Rubicon Carbon for 18 mln ARR credits
In one of the largest single-buyer commitments in the voluntary carbon market to date, Microsoft has signed a framework agreement with US-based Rubicon Carbon to purchase 18 million tCO2e of high-quality carbon removal credits over the next two decades.
The agreement, signed on Thursday May 15, will support a global portfolio of afforestation, reforestation and revegetation (ARR) projects, with each transaction structured as a 15-to 20-year offtake. The deal reflects growing momentum among corporate buyers to secure long-term supplies of durable carbon removals.
“This collaboration serves as a blueprint for how the financial sector can meet the urgency of the moment while also generating strong financial returns,” Tom Montag, Rubicon Carbon’s chief executive officer, said. “We aim to crowd in more capital by leveraging market based mechanisms to scale societal impact at a planetary scale.”
For in-depth coverage of these stories and access to regular updates, sign up for our free Fastmarkets Carbon Newsletter.
With 18 million tCO2e committed, the Rubicon agreement stands out as one of the largest-ever nature-based carbon removal deals publicly disclosed. It builds on Microsoft’s growing portfolio of ARR investments, which include an 8 million-tCO2e offtake from BTG Pactual Timberland Investment Group announced in June 2024; support for Re.green’s restoration of 16,000 hectares in Brazil, targeting 3 million tCO2e over 15 years; participation in the Azuero Reforestation Project in Panama, which is expected to generate 3.24 million tCO2e of carbon removals by 2052; and a 25-year agreement with Chestnut Carbon to reforest 60,000 acres in the southern US.
Rubicon Carbon, launched in 2022 by TPG’s Rise Climate fund, will lead sourcing, due diligence and quality monitoring for the credits under the deal. The company has developed an evaluation framework tailored to Microsoft’s climate criteria while incorporating Rubicon’s internal scientific benchmarks.
Remote-sensing technologies and ongoing monitoring will be used to ensure integrity and permanence over the life of the offtake agreements. “We believe that project finance needs to be central to the voluntary carbon market,” Brian Marrs, Microsoft’s senior director of energy & carbon removal, said. “This deal signals the long-term demand for carbon removal necessary to mobilize infrastructure-grade investment and world-class execution.”
The agreement reflects a broader shift among buyers toward carbon removal credits over avoidance credits. While avoidance projects still dominate in terms of volume, removal credits are commanding stronger demand growth and higher price premiums, suggesting growing confidence among buyers in their long-term climate value.
It also highlights a trend toward direct engagement in the primary market, as major buyers seek greater transparency, quality assurance and influence over project development. Long-term offtake agreements offer the predictability needed to help early-stage projects secure financing and scale.
Microsoft has previously emphasized the need to remove all its historical emissions by 2050 and to become carbon negative by 2030. Its carbon removal portfolio includes a mix of nature-based and technology driven solutions.
The deal also reflects Rubicon’s broader push to scale market based solutions for climate finance. “This agreement with Microsoft represents an important milestone on our journey to deliver innovative, market-based solutions,” Jim Coulter, TPG’s founding partner and managing partner of TPG Rise Climate, said.
Symbiosis Coalition shortlists projects in first $1 bln bid for durable nature-based carbon removals
The Symbiosis Coalition, a tech-backed initiative by Google, Meta, Microsoft and Salesforce, shared early details of its first Request for Proposals (RFP) on Friday May 23, targeting a new class of nature-based carbon dioxide removal (CDR) credits.
The effort is backed by up to $1 billion in advance market commitments (AMCs) aimed at catalyzing high-integrity, long duration carbon removal from reforestation and agroforestry projects. Launched in 2023, the Coalition received 228 proposals for its inaugural RFP. Following a pre-screening phase, 185 proposals from 153 project developers across 49 countries advanced to detailed review.
Selected projects could generate up to 20 million tCO2e removals by 2030, though Symbiosis has not yet named successful bidders or disclosed price or contract tenor details. Contract negotiations are ongoing. “This kind of long-term demand can offer developers real revenue certainty, which is critical for capital-intensive restoration,” the Coalition said in a statement.
Criteria focused on permanence, baselines and co-benefits The Coalition assessed projects through desk reviews, stakeholder interviews and field visits, with support from TerraCarbon and a multidisciplinary panel of advisors.
Proposals were evaluated for scalability, environmental and social integrity, and alignment with Symbiosis’ principles, including high standards for permanence, baseline credibility and leakage mitigation.
Eligibility criteria built on recognized standards such as Verra, Gold Standard and the American Carbon Registry, but applied additional filters for biodiversity, equity, and implementation track record.
Most projects were in early stages: 78% had only a feasibility study or draft project design document, and just 5% had issued credits. Projects were also required to ensure equitable benefit-sharing with indigenous people and local communities, and commit to transparent monitoring, reporting and verification (MRV).
Most of the 6.6 million ha covered in proposals are in biomes suitable for reforestation or agroforestry, such as tropical forests, the Miombo woodland and savanna regions.
A demand signal for durable nature-based removals
AMCs, which guarantee future offtake from qualified projects, are intended to de-risk capital deployment and fast-track large-scale implementation.
The model, first popularized by Frontier for engineered removals, is now being adapted for nature-based solutions. Symbiosis contracts will include robust MRV requirements and tie payments to the issuance of third-party verified credits.
The goal is to support a high integrity supply of nature based CDR credits that can scale to climate-relevant volumes by 2030, the Coalition said.
This initiative marks the first large-scale, private sector-led demand floor for nature-based CDR credits, a market segment still recovering from skepticism around permanence and over-crediting. If successful, Symbiosis could help normalize new benchmarks for ecological integrity and social safeguards in the voluntary market.
Applications for reforestation and agroforestry will reopen in late 2025 or early 2026, with a second RFP focused on mangrove restoration slated for later this year. Future rounds may also cover regenerative agriculture and improved forest management, subject to the availability of durable removal methodologies.
Want more news on the global carbon markets?
The Carbon Markets are at the forefront of climate innovation, bridging the gap between corporate sustainability goals and global climate targets. Whether through biochar, ARR credits, or durable carbon removals, VCM developments are setting a precedent for high-quality, impactful climate finance.
To stay ahead in this dynamic landscape, subscribe to the Fastmarkets Carbon Newsletter.
Every week, you’ll receive:
- Comprehensive carbon price data updates.
- Industry-shaping news highlights.
- Retirement and issuance analyses.
- Deep dives into market trends and opportunities.
Don’t miss your chance to gain a competitive edge in the growing carbon markets.
