Petrobras makes its first carbon credit purchase
SUMMARY
The company acquires carbon credits generated from the preservation of 570 hectares of the Amazon rainforest.
By Shardul SharmaPOSTED IN:
Brazilian state-owned oil company Petrobras has entered the voluntary carbon market by acquiring credits equivalent to 175,000 tonnes of avoided greenhouse gases (GHGs), it announced on September 5. This operation corresponds to the preservation of an area totalling 570 hectares of the Amazon rainforest.
The credits were acquired from Envira Amazonia, a project based in the city of Feijo, state of Acre, dedicated to the preservation of the Amazon rainforest and actions in favour of the communities living in the region. Petrobras' 2023-27 strategic plan provides for other operations in the carbon market, with total planned investments in terms of credit acquisitions reaching up to $120mn by 2027.
With the purchase of carbon credits, Petrobras' goal is to complement its decarbonisation strategy, which includes several fronts, such as reducing emissions in its operations, renewable energy projects, biorefining and carbon capture and storage (CCS).
"Here at Petrobras, we wish to contribute to Brazil's energy transition process in a more effective way," said Petrobras president Jean Paul Prates. "With each advance towards the use of clean energy sources, with carbon capture and storage, and with investments in decarbonization, we're creating a future in which the economy can thrive and prosper in harmony with the planet.”
"We believe that the carbon market is an important instrument in the fight against climate change, and we know that Brazil has a huge potential to take a leading role in this segment, especially because it is one of the countries with the greatest biodiversity in the world," said Prates.
The carbon market is a system that allows companies to offset their greenhouse gas emissions by purchasing credits from projects that reduce or remove emissions. This can be a way for companies to reduce their environmental impact without having to make changes to their own operations.
The Envira Amazonia project is one of many projects that are working to preserve the Amazon rainforest. The project works with local communities to protect the rainforest and to promote sustainable development.
