Law firm Baker McKenzie forges agreement for acquisition of carbon removal credits
Microsoft and Rubicon Carbon have agreed upon a landmark deal in the global voluntary carbon market, marking the largest single-buyer commitment of its kind. The contract entails the purchase of 18 million tonnes of carbon removal credits over a 15-to-20-year period.
International law firm Baker McKenzie provided legal counsel for the agreement between tech giant Microsoft and carbon credit management firm Rubicon Carbon. The agreement's structure is built around long-term offtake arrangements, which will support a variety of projects focused on Afforestation, Reforestation, and Revegetation (ARR) across the globe. Rubicon Carbon will oversee the sourcing, evaluation, and monitoring of these projects to ensure scalability, with a particular emphasis on projects that necessitate investment.
Microsoft and Rubicon Carbon have collaboratively developed an evaluation framework that integrates Rubicon Carbon's stringent carbon removal credit standards and Microsoft's science and quality criteria. This process ensures the high quality and integrity of the projects involved.
Andrew Hedges, the global chair of Baker McKenzie's climate change group, led the advisory team. The team also included corporate senior associate Andrew Paget, corporate energy and infrastructure associate Alex Tam, and corporate and securities partner Daniel de Deo.
The agreement underscores the deep expertise that Baker McKenzie brings to complex, high-impact transactions in the carbon markets and broader sustainability space. Nature-based carbon removal is a cornerstone of the global climate strategy, and this partnership represents a significant stride towards scaling credible, science-backed solutions.
Rubicon Carbon's CEO, Tom Montag, emphasized the partnership's financial returns while addressing climate change. Microsoft Senior Director of Energy and Carbon Removal, Brian Marrs, commented on the deal's potential to scale affordable and high-quality climate solutions through science, finance, and business model innovation.
The deal is notable for Microsoft, as it aligns with the company's ambitious climate goals, including carbon negativity by 2030 and eliminating all historical carbon emissions by 2050. Rubicon Carbon Backer TPG's founding partner, Jim Coulter, also considers the agreement an important milestone towards delivering innovative, market-based solutions for high-quality carbon projects at scale.
- The agreement between Microsoft and Rubicon Carbon, facilitated by Baker McKenzie, positions environmental-science projects such as Afforestation, Reforestation, and Revegetation (ARR) for significant investing opportunities in the global climate-change arena.
- The collaborative development of an evaluation framework integrates science and quality criteria in the selection of high-quality carbon removal projects, reflecting Microsoft's investment philosophy and commitment to business model innovation.
- The landmark deal with Rubicon Carbon, which includes the purchase of 18 million tonnes of carbon removal credits, demonstrates Microsoft's dedication to financial investment in credible, science-backed solutions that contribute to its ambitious climate goals.
