Baker McKenzie Advises Rubicon Carbon on Carbon Deal with Microsoft.
Baker McKenzie has advised Rubicon Carbon, a carbon credit management firm, on a major agreement with Microsoft to secure 18 million tonnes of carbon removal credits, one of the biggest deals of its kind.
This long-term partnership will see Rubicon Carbon supplying Microsoft with high-quality carbon removal credits through 15- to 20-year agreements.
The credits will support a range of Afforestation, Reforestation, and Revegetation (ARR) projects across the globe.
What makes this deal stand out is Microsoft’s commitment to scaling up carbon removal efforts. By locking in long-term agreements, the company is not only supporting climate action but also giving investors confidence to back projects that might otherwise struggle to get off the ground.
Andrew Hedges shared his thoughts:
“We are proud to have supported Rubicon Carbon on this landmark agreement with Microsoft. This deal underscores our deep expertise in advising on complex, high-impact transactions in the carbon markets and broader sustainability space.”
“Nature-based carbon removal is a critical component of the global climate strategy, and this partnership represents a significant step forward in scaling credible, science-backed solutions.”
Rubicon Carbon’s CEO, Tom Montag, emphasized the significance of the agreement:
“Addressing climate change requires more than good intentions, it requires capital deployment at scale. 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.”
Brian Marrs, Microsoft’s Senior Director for Energy & Carbon Removal, also highlighted the deal’s importance:
“This agreement demonstrates how science, finance, and business model innovation can work in concert to scale affordable and high-quality climate solutions.”
“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.”
The Baker McKenzie team working with Rubicon Carbon was led by Andrew Hedges, who heads the firm’s Climate Change Group. He was joined by Senior Associate Andrew Paget and Associate Alex Tam from London, along with Corporate & Securities Partner Daniel de Deo from Washington DC.
Rubicon Carbon, founded in 2022 and headquartered in Marina del Rey, California, is a next-generation carbon solutions provider dedicated to addressing the climate crisis through market-driven strategies. The company offers enterprise-grade carbon credit solutions that combine scientific rigor with financial innovation.
Its mission is to help end the climate crisis by delivering scalable, science-backed carbon removal projects and engaging investors through tailored portfolios. Backed by TPG Rise Climate, Rubicon Carbon collaborates with corporate clients, investors, and project developers to finance and scale high-quality carbon removal projects.
The leadership team includes CEO Tom Montag, former Bank of America COO and Partner at Goldman Sachs, and Chief Science Officer Dr. Jennifer Jenkins, co-recipient of the 2007 Nobel Peace Prize as part of the Intergovernmental Panel on Climate Change (IPCC).
Baker McKenzie is a leading global law firm founded in 1949, with a presence in over 40 countries. With a team of 13,000 professionals, the firm advises corporations, governments, and institutions on complex legal matters across corporate law, litigation, tax, and more. Renowned for its cross-border capabilities and innovative approach, Baker McKenzie has handled over USD 600 billion in M&A transactions in the past five years, more than 65% of which span multiple jurisdictions. The firm is also recognized for its commitment to diversity, inclusion, and sustainable business practices.
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