Petrobras, the state-controlled Brazilian oil giant, has taken a momentous step in its battle against carbon emissions with a landmark acquisition of carbon credits. These credits are equivalent to 175,000 tonnes of greenhouse gas emissions avoided and are generated by a project to preserve 570 hectares of the Amazon Rainforest.
Drone view of Amazon Rainforest.
This move aligns with Petrobras' comprehensive decarbonisation strategy outlined in its most recent five-year strategic plan. This plan outlines its commitment to invest up to $120 million in carbon credit acquisitions from 2023 to 2027. Energy Transition and Sustainability Director Maurício Tolmasquim indicated the possibility of further increasing this investment in low carbon emissions in the next five-year plan, with a share between 6% and 15% of its global emissions targeted as an investment.
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Petrobras, formally known as Petroleo Brasileiro SA, has set an ambitious target of reducing its total emissions by 30% by 2030. To meet this target, it is integrating carbon credits into its broader climate-centric strategy. This includes several key elements, including emission reduction in operations, investing in renewable energy projects, implementing biorefining processes, and exploring carbon capture and storage technologies.
Petrobras delved into the green financing market in 2022 by securing a $1.25 billion sustainability-linked loan strategically designed to attract environmentally-conscious investors.
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Petrobras has chosen to prioritise the purchase of high-quality credits sourced from Brazil's voluntary market, originating from natural sources. Its first carbon credit purchase supported the Envira Amazonia project, focusing on preserving the Amazon Rainforest and enhancing the lives of local communities, aligning with its objective that extends beyond environmental protection, aiming to contribute to the welfare of nearby communities.
Petrobras President Jean Paul Prates commented that, ‘Here at Petrobras we want to make a decisive contribution to Brazil’s energy transition process. With every step towards the use of clean energy sources, carbon capture and storage, and investments in decarbonisation, we are creating a future in which the economy will thrive in harmony with the planet.’
At DGB Group, we recognise the vital role of forests and natural habitats in supporting biodiversity and providing essential ecosystem services. We manage large-scale reforestation and nature-restoration projects around the world that restore and protect vital habitats so local biodiversity can thrive. Our projects enable organisations to effectively offset their carbon emissions by leveraging top-tier carbon and biodiversity credits while simultaneously promoting the wellbeing of nature and local communities.
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