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Rubicon Carbon Enters into Agreement with Microsoft for Nature-based Carbon Removal Credits

1. Microsoft committed to purchase 18 million tonnes of carbon removal credits. 2. This is one of the largest corporate commitments in the carbon market. 3. The deal supports Afforestation, Reforestation, and Revegetation projects globally. 4. Microsoft's framework aims to accelerate investment in carbon projects. 5. The agreement indicates strong long-term demand for carbon removal solutions.

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Why Bullish?

The substantial carbon credit commitment reflects Microsoft's commitment to sustainability, enhancing its corporate image and potentially attracting environmentally-conscious investors. Similar positive market reactions have followed past ESG-focused initiatives by large companies.

How important is it?

The significance of Microsoft's investment reflects an ongoing shift in corporate strategies towards sustainability, likely affecting its market position and valuation positively.

Why Long Term?

The 15-20 year structure of the offtake agreements suggests a long-term commitment to sustainability and could continually bolster MSFT's market reputation and investor interest over years.

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This initiative marks one of the largest-ever commitments by a single corporate buyer in the voluntary carbon market to date. MARINA DEL REY, Calif.--(BUSINESS WIRE)--Rubicon Carbon, a leading carbon credit management firm, today entered into a framework agreement with Microsoft to facilitate the purchase of 18 million tonnes of high-quality carbon removal credits – one of the largest single-buyer commitments of its kind in the world. Each carbon removal transaction under this deal will be structured as 15- to 20-year offtakes, supporting a pipeline of individual Afforestation, Reforestation, and Revegetation (ARR) projects worldwide. A defining feature of this framework agreement is the scale of Microsoft’s work in this space. By anchoring long-term offtake agreements, this deal demonstrates the growing role of corporate buyers in unlocking private investment for high-integrity carbon projects that might otherwise lack funding. “Addressing climate change requires more than good intentions—it requires capital deployment at scale,” said Tom Montag, CEO of Rubicon Carbon. “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.” “This agreement demonstrates how science, finance, and business model innovation can work in concert to scale affordable and high-quality climate solutions,” said Brian Marrs, Senior Director, Energy & Carbon Removal at Microsoft. “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.” Through this collaboration, Rubicon Carbon has developed an evaluation framework with Microsoft that reflects Microsoft’s science and quality criteria while building upon Rubicon Carbon’s rigorous standards for carbon removal credit integrity. Rubicon Carbon will source, assess, and conduct advanced due diligence on ARR projects worldwide, prioritizing those with strong potential for scale but limited access to capital. Rubicon Carbon’s in-house science team will provide continuous quality assurance and monitoring, leveraging the latest remote-sensing technologies. “We launched Rubicon Carbon three years ago to catalyze high-quality carbon projects at scale. This agreement with Microsoft represents an important milestone on our journey to deliver innovative, market-based solutions,” said Jim Coulter, Founding Partner of TPG and a Managing Partner of TPG Rise Climate. For more information on Rubicon Carbon, visit the website, follow on LinkedIn, or contact Rubicon Carbon’s Supply sourcing team. About Rubicon Carbon: Rubicon Carbon is a carbon credit management firm that empowers the world’s largest enterprises to achieve their sustainability goals by addressing carbon emissions and driving global climate finance. Backed by TPG Rise Climate and led by top executives from across finance, technology, and climate science, Rubicon Carbon delivers innovative carbon credit solutions to global businesses while unlocking carbon avoidance and removal projects at scale, all backed by rigorous in-house scientific diligence. For more information, visit www.rubiconcarbon.com.

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