In a significant expansion of its environmental portfolio, Microsoft has finalised a nine-year agreement to purchase 2 million nature-based carbon removal credits from a forestry initiative in Northern Uganda. Microsoft has long recognised that meeting its ambitious environmental targets requires a diverse portfolio that prioritises the restoration of natural ecosystems.
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A Microsoft worker and a Ugandan farmer are overseeing Uganda's Kijani Forestry project. AI generated picture.
The deal, facilitated through a strategic framework with Rubicon Carbon, sources credits from the Kijani Forestry Smallholder Farmer Forestry Project—one of the first programs to be formally approved under Uganda’s new Climate Change Mechanisms Regulations.
The project centres on a network of over 50,000 smallholder farmers who are transforming previously degraded land into productive woodlots. By early 2026, the initiative had already overseen the planting of more than 30 million trees. This project generates Afforestation, Reforestation, and Revegetation (ARR) credits, which represent physical carbon captured and stored within the biomass of growing forests.
This transaction is the first to be executed under a broader framework established between Microsoft and Rubicon Carbon in 2025. This long-term structure allows the tech giant to potentially secure up to 18 million tonnes of high-quality removal credits by 2035, providing a predictable pipeline for Microsoft’s goal to become carbon negative by 2030.
Phillip Goodman, Director of Carbon Removal at Microsoft, emphasised the dual impact of the partnership: ‘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.’
Read more: The $16 billion pivot: Why carbon markets surged in 2025
For the local communities in Northern Uganda, the project functions as an economic engine. Participating farmers benefit from multiple revenue streams:
- Early carbon revenue: Payments linked to tree survival rates provide income within the first year of planting.
- Sustainable commodities: Mature trees offer a regulated source of timber and sustainable charcoal, providing an alternative to the illegal charcoal trade that often drives regional deforestation.
- Ecosystem restoration: The project improves soil health and water regulation, which are critical for long-term agricultural resilience.
To ensure the integrity of these removals, Rubicon Carbon employs a ‘technology stack’ for monitoring. Each farmer's plot is tagged with GPS coordinates, and remote sensing data is used to verify carbon storage over time.
Read more: Beyond tonnes: How carbon credit co-benefits elevate value
In a year where the carbon market reached unprecedented heghts, the message for the future is unmistakable: value is now defined by integrity, durability, and a commitment to measurable impact. As we have explored, the industry is moving past the initial ‘tech rush’ and into a more selective phase, where the focus is shifting toward responsible, transparent verification and long-term ecosystem restoration. Green Earth’s portfolio is purpose-built for this new era, leveraging efficient digital methodologies to go beyond simple offsets, focusing instead on restoring vital habitats and empowering the communities at their heart. With 2030 deadlines approaching and corporate leaders increasingly securing their future through high-integrity assets, the transition from observation to action is no longer optional. Now is the time to ensure your strategy aligns with a market built for long-term relevance.
