(Bloomberg) —
French oil major TotalEnergies SE signed a $100 million deal to curb its greenhouse gas emissions by buying carbon credits generated by forest-protection projects across the US.
The agreement was signed with climate-solution adviser Anew Climate and US forest landowner Aurora Sustainable Lands, who will provide operational oversight, according to a statement on Friday. TotalEnergies will use the credits generated to cancel emissions after 2030.
TotalEnergies has said it plans to invest $100 million a year to build a portfolio of projects capable of generating at least 5 million tons of carbon credits per year by 2030.
The environmental benefits expected from the agreement include the preservation of natural carbon sinks by reducing timber harvesting, as well as water and soil quality improvement, biodiversity protection and natural habitat conservation, according to the statement.
While the French energy giant said carbon credits will be used to offset part of its remaining pollution while it prioritizes emissions reduction, nature-based solutions have come under increased scrutiny amid concerns about carbon-credit accounting and risks of greenwashing.
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