In pursuit of its net-zero emissions goal by 2040, McLaren Racing has announced plans to acquire carbon credits from reforestation initiatives in the Amazon rainforest and carbon dioxide (CO2) removal projects in the UK and the US.
The Formula 1 and IndyCar Series team, recognizing emissions from activities like air travel, aims to offset its carbon footprint by participating in schemes such as those led by Brazilian startup Mombak and Scottish firm UNDO.
The collaboration between McLaren and Mombak involves purchasing carbon credits for reforesting degraded Amazon land, while the partnership with UNDO focuses on CO2 removal through enhanced rock weathering in Britain.
Additionally, the UK-based team has joined forces with the Great Barrier Reef Foundation, contributing to coral reef restoration efforts.
McLaren strives to cut its emissions by 90% by 2040, with the remaining 10% addressed through initiatives like carbon offsetting.
The specifics of the team’s investment under its Climate Contribution Program remain undisclosed.
Notably, McLaren’s deal with Mombak sees the team paying a premium, with removals priced above US$50 per metric ton, surpassing traditional carbon credit market values, the Brazilian company told Reuters.
This financial commitment signifies a significant shift, challenging the notion that carbon credits in Brazil are valued at lower rates of between US$5 and US$15, Mombak co-founder Peter Fernandez said in an interview.
Mombak, backed by investors including Boston-based Bain Capital and French insurer AXA (EPA: CS), has secured funding to develop carbon removal projects in the Amazon, anticipating that the McLaren partnership will shape Brazil’s emerging carbon removal sector.
However, critics, such as Greenpeace, caution that carbon offset markets may enable emitters to continue greenhouse gas releases.