France’s TotalEnergies SE increased its spending on carbon credits to a record $73 million in 2025, underscoring the growing role of offsets in its climate strategy even as the company maintained solid financial performance.
The outlay marked a 49% increase from the previous year and was disclosed alongside full-year results last week. The French energy major uses carbon credits to compensate for emissions that are difficult to eliminate, including those linked to oil and gas operations and the use of its products.
Carbon credits finance projects such as forest conservation, reforestation and other initiatives designed to reduce or remove greenhouse gases. The company is building a portfolio of such credits as a bridge toward its long-term decarbonization goals.
The higher spending came as TotalEnergies reported resilient earnings despite softer oil prices. Adjusted net income reached $15.6 billion in 2025, while operating cash flow totaled nearly $28 billion. Upstream production rose about 4%, and liquefied natural gas sales also supported results.
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At the same time, the company continued to invest in lower-carbon energy. Capital expenditures totaled $17.1 billion, with roughly $3.5 billion allocated to low-carbon businesses, including nearly $3 billion for electricity and renewable power. TotalEnergies added about 8 gigawatts of renewable capacity during the year.
Carbon credits are expected to remain part of the company’s transition plan. TotalEnergies has said it intends to invest about $100 million annually over time in carbon projects to help offset residual emissions by 2030.
The company aims to reach net-zero emissions by 2050 across its operations and energy products, combining operational reductions, expanding renewable capacity and selective use of offsets.
TotalEnergies’ rising carbon credit purchases reflect a broader industry trend, as oil and gas producers seek to balance strong cash generation from traditional energy with increasing pressure to demonstrate progress on climate commitments.
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