Petrobras, the Brazilian state-controlled oil company, has made a significant move toward combating carbon emissions by making a landmark carbon credits purchase.
The company, formally known as Petroleo Brasileiro SA, announced on Tuesday that it had acquired credits equivalent to 175,000 tons of avoided greenhouse gas emissions.
This purchase corresponds to the preservation of 570 hectares, or 1,408 acres, of forested land. The credits will come from a project aimed at protecting the Amazon rainforest.
This decision comes as part of the company’s broader decarbonization effort, which was outlined in its most recent five-year strategic plan. The plan predicts that Petrobras will invest up to $120 million in carbon credit acquisitions between 2023 and 2027.
Mauricio Tolmasquim, the company’s energy transition director, has suggested that this amount is likely to be increased even further for the next five-year plan. The company has set an ambitious target of reducing its total absolute emissions by 30% by 2030.
To achieve this, Petrobras is using carbon credits as part of its broader climate-centric strategy, which includes reducing emissions from its operations, investing in renewable energy projects, implementing biorefining processes, and exploring carbon capture and storage technologies.
In 2022, the company also ventured into the green financing market by securing a $1.25 billion sustainability-linked loan, a move aimed at attracting investors with a focus on environmental responsibility.
Petrobras has made the decision to give priority to buying top-notch credits produced in Brazil’s voluntary market that are derived from natural sources. The company’s objective is to support initiatives that not only protect the environment but also contribute to the welfare of nearby communities.
The first purchase made by Petrobras involved the Envira Amazonia project, which focuses on preserving the Amazon rainforest and improving the lives of the communities residing within it.