Microsoft and carbon markets platform Rubicon Carbon announced today a new agreement for the  delivery of two million Afforestation, Reforestation, and Revegetation (ARR) carbon removal credits to Microsoft over the next 9 years, sourced from a smallholder farm-focused forestry project in Uganda.

The new announcement marks the first deal to be completed under a framework agreement launched in 2025 by the companies, under which Rubicon will facilitate the purchase of 18 million tonnes of high-quality carbon removal credits for Microsoft, with a focus on Afforestation, Reforestation, and Revegetation projects worldwide.

The new agreement will support the Smallholder Farmer Forestry Project by Uganda-based Kijani Forestry. Kijani works with more than 50,000 smallholder farmers to establish income-generating woodlots on degraded land, with the new offtake deal creating the ability for farmers to earn income from future carbon revenue within a year of the trees being planted. When the trees mature, farmers can also generate new revenue streams from sustainable timber and charcoal production.

Tom Montag, CEO of Rubicon Carbon, said:

“This project demonstrates how structured finance can unlock scale in nature-based removals. 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 has planted 30 million trees to date in partnership with its farmers, which are projected to increase household incomes by more than 600% per acre planted. According to Quinn Neely, Co-Founder and CEO of Kijani Forestry, the collaboration with Rubicon and Microsoft will enable the project “to reach more farmers, restore more land, and accelerate climate impact.”

The announcement marks the latest in a series of large-scale carbon credit agreements by Microsoft, by far the largest corporate purchaser in the carbon removal market. Microsoft’s carbon removal portfolio already includes several large-scale afforestation and reforestation-based agreements, including a 7 million ton agreement with Chestnut Carbon and a 3.5 million ton deal with re.green announced last year.

Phillip Goodman, Director of Carbon Removal at Microsoft, said:

“We are pleased to support Kijani’s work in strengthening farmer livelihoods while restoring ecosystems in Northern Uganda. The framework with Rubicon Carbon streamlines the contracting process, while ensuring project quality and unlocking financing for nature-based removals.”