MARINA DEL REY, CALIF. -- Rubicon Carbon, a vertically integrated carbon credit investment and management firm, signed an agreement to deliver two million high-quality Afforestation, Reforestation, and Revegetation (ARR) credits to Microsoft over nine years. The credits will be sourced through 2035 from Kijani Forestry’s Smallholder Farmer Forestry Project, which is one of the first to be approved under Uganda’s Climate Change Mechanisms Regulations.

The Smallholder Farmer Forestry Project in Northern Uganda is the first to advance under the framework between Rubicon Carbon and Microsoft, which facilitates the purchase of up to 18 million tonnes of high-quality carbon removal credits. The framework’s structured approach is designed to expand access to capital for carbon removal projects and streamline contracting processes between the parties.

“This project demonstrates how structured finance can unlock scale in nature-based removals,” said Tom Montag, CEO 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 one of Northern Uganda’s largest employers, with over 600 full-time employees, and works with more than 50,000 smallholder farmers to establish income-generating woodlots on degraded land. The 30 million trees planted to-date in partnership with its farmers are projected to increase their household incomes by more than 600 percent per acre planted. The offtake deal has unlocked the ability for farmers to earn income from future carbon revenue within a year of the trees being planted. When the trees mature, Kijani Forestry’s farmers can generate new revenue streams from sustainable timber and charcoal production, easing pressure on natural forests and driving 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 CEO 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—unlocking benefits for tens of thousands of Ugandans while advancing national restoration goals. We are proud to show how carbon markets can regenerate ecosystems at scale while uplifting livelihoods throughout Ugandan communities.”

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