Microsoft Backs Carbon Removal Efforts in Northern Uganda

Microsoft is ramping up its commitment to carbon removal with a new initiative aimed at restoring forests in Northern Uganda. The tech giant entered into an agreement with Rubicon Carbon to purchase 2 million Afforestation, Reforestation, and Revegetation (ARR) credits as part of a larger framework that allows the purchase of up to 18 million tonnes of high-quality carbon removal credits.

The credits will primarily come from Kijani Forestry’s Smallholder Farmer Forestry Project in Northern Uganda, intended to source carbon credits through 2035, as detailed in a recent press release.

Kijani Forestry collaborates with over 50,000 smallholder farmers to rehabilitate degraded lands for woodlots. This initiative enables farmers to generate sustainable timber and charcoal, contributing significantly to local economies. So far, the project has led to the planting of over 30 million trees, boosting household incomes by an estimated 600% per planted acre.

Tom Montag, CEO of Rubicon Carbon, highlighted the project’s potential, stating, “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.”

Quinn Neely, co-founder, and CEO of Kijani Forestry, echoed similar sentiments, emphasizing the importance of financing for farmers and climate change mitigation. “Working with Rubicon Carbon allows us to reach more farmers, restore more land, and accelerate climate impact,” he said.

Reflecting on Microsoft’s 2025 Carbon Removal Investments

Microsoft achieved carbon neutrality in 2012 and aims to be carbon negative by 2030, driving a range of environmental initiatives. The company’s investments in carbon removal have included several key projects in 2025.

In June 2025, Microsoft acquired 2.6 million carbon removal credits from Agoro Carbon through a 12-year offtake agreement. This initiative focuses on converting U.S. crop and rangeland to regenerative farming practices, including cover cropping and reduced tillage, as developed under the Verra’s VM0042 Improved Agricultural Land Management methodology.

Moreover, Microsoft secured an agreement with InPlanet to remove 28,500 tonnes of CO2 through tropical enhanced rock weathering (ERW), a method applying crushed silicate rocks to soil. This process not only captures atmospheric CO2 but also enhances soil health. InPlanet manages a 12,000-hectare ERW project in Brazil.

Additionally, the company has signed a deal to purchase 3.6 million metric tons of carbon from C2X’s Beaver Lake project in Louisiana, which aims to convert a former paper mill into a bio-methanol plant. This project is expected to produce 500,000 metric tons of bio-methanol while capturing 1 million metric tonnes of CO2 annually.