Microsoft has signed a new carbon removal deal, entering a framework agreement with Rubicon Carbon to facilitate the purchase of 18 million tonnes of high-quality, nature-based carbon removal credits.
With an aim of supporting initiatives that show a promising scaling potential but lack the necessary funding, this deal will structure each chosen carbon removal transaction as 15- to 20-year offtakes.
For Microsoft, this is one more carbon removal commitment in a series of partnerships the global corporation has embarked on recently as part of its climate strategy for becoming CO2 negative by 2030 and removing all its emitted emissions by 2050.
The tech corporation saw a trustworthy partner in carbon credit management company Rubicon Carbon, trusting them with the task of selecting the right projects for this joint venture.
Under the agreement, Rubicon Carbon will source, assess, and conduct advanced due diligence on worldwide carbon removal projects centered around afforestation, reforestation, and revegetation (ARR).
Additionally, as part of the collaboration, Rubicon Carbon has created an evaluation framework that matches the science and quality criteria of Microsoft, building on its own rigorous standards for the integrity of carbon removal credits.
Led by climate scientists and finance executives, Rubicon Carbon will leverage its team’s valuable input and skill set to provide continuous quality assurance and monitoring for the chosen carbon removal initiatives, backed by the latest remote sensing technologies.
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Commenting on the agreement, Tom Montag, CEO of Rubicon Carbon, explained that beyond just good intentions, effective climate change action also requires capital deployment at scale.
He said, “This collaboration serves as a blueprint for how the financial sector can meet the urgency of the moment while also generating strong financial returns. We aim to crowd in more capital by leveraging market-based mechanisms to scale societal impact at a planetary scale.”
On behalf of Microsoft, Brian Marrs, Senior Director, Energy & Carbon Removal, shared, “We believe that project finance needs to be central to the voluntary carbon market, and this deal signals the long-term demand for carbon removal necessary to mobilize infrastructure-grade investment and world-class execution.”
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