Petrobras makes first purchase of carbon credits

The credits were acquired from the Envira Amazonia Project – based in the municipality of Feijó, in Acre – dedicated to the preservation of the Amazon Forest and the development of actions in favor of communities in the region. The Petrobras Strategic Plan 2023-27 foresees other operations in the carbon market, with total investments expected of up to US$120 million in credit acquisition by 2027.

Carbon credits: what they are, how they work, current impasses and more

The fuel sector's carbon credit program has been constantly challenged, both due to the spike in prices in recent months and its effectiveness in achieving environmental objectives. Do you understand this problem? O Curto help you.

With the purchase of carbon credits, Petrobras' purpose is to complement the decarbonization strategy, which includes several fronts such as, for example, reducing emissions in operations, renewable energy projects, biorefining and carbon capture and storage.

What is carbon sequestration?

Carbon sequestration refers to the process of capturing and storing carbon dioxide (CO2) from the atmosphere in order to reduce the amount of CO2 in the atmosphere and mitigate the effects of global warming. This is done through a variety of techniques, including storage in geological reservoirs, use in industrial processes and agriculture, and capture and storage in forests and oceans.

According to the company, the drivers for the next Strategic Plan 2024-28, currently under development, indicate the search for profitable opportunities to expand investment in low carbon, aiming for a level between 6 and 15% of the company's global investment.

 “Here at Petrobras, we want to make an incisive contribution to Brazil’s energy transition process. With each advance towards the use of clean energy sources, carbon capture and storage, and investment in decarbonization, we are creating a future in which the economy prospers in harmony with the planet”, said, in a statement, the president of Petrobras, Jean Paul Prates.

“We believe in the carbon market as an important instrument in combating climate change and we know that Brazil has immense potential to lead this segment, precisely because it is one of the countries with the greatest biodiversity in the world”, he added.

According to the director of Energy Transition and Sustainability, Maurício Tolmasquim, the priority will be to acquire natural-based credits, generated in Brazil and of high quality, that contribute to the conservation and recovery of Brazilian biomes. “We want to ensure that the credits used generate climate, social and environmental benefits for the country, in a transparent and traceable way”, said, in a note, Tolmasquim.

“Compensating emissions through carbon credits is complementary to intrinsic decarbonization and allows companies to increase their ambition. It is important to emphasize that this Petrobras initiative does not replace, but rather complements, efforts to reduce our emissions while contributing to financing the conservation of Brazilian forests”, stated, in a note, the executive manager of Climate Change at Petrobras, Viviana Coelho.

carbon market

The carbon market consists of a mechanism for compensating carbon emissions greenhouse gases, through the negotiation of carbon credits. These credits are generated by projects that prevent these gases from being emitted or that remove these gases. In this way, carbon credits function as a type of currency, in which a company can purchase credits to offset its own operational emissions or those of its products. Well-established markets can accelerate the reduction of emissions and reduce costs for society, as they enable the best opportunity costs to be identified.

Furthermore, the carbon market is one of the instruments to meet the goals of Paris Agreement signed in 2015 by almost 200 countries, including Brazil, whichpromehave to adopt measures to reduce greenhouse gas emissions.

Carbon credits can be generated in different ways, for example from capturing methane in landfills or from natural-based projects, known as Nature Based Solutions. They stand out for their contribution to the recovery or preservation of natural ecosystems and their environmental benefits, such as preserving biodiversity and water resources, and the positive impact they can have on local communities.

(With Brazil Agency)

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