Petrobras, Brazil’s state-owned oil giant, has ventured into the voluntary carbon market, marking its first-ever purchase of carbon credits.
The acquired carbon offsets originate from the Envira Amazonia project, dedicated to the preservation of the Amazon rainforest in Acre’s western state since 2012.
Petrobras said its purchase amounts to a significant 175,000 tons of avoided carbon emissions, with an estimated value below US$1 million. This translates into the conservation of 570 hectares (1,408 acres) of rainforest.
Hess’ carbon credits deal with Guyana outweighs its 2022 global emissions almost 10 times | OilNOW
In the near term, Petrobras aims to reduce greenhouse gas emissions by 30% before 2030, building on its remarkable achievements, including a 39% reduction in operational emissions and a 67% decline in methane emissions from 2015 to 2022.
Originally planning to invest up to US$120 million in carbon credits, Petrobras has revised this figure, making it the minimum investment threshold. This adjustment aligns with the company’s 2024-2028 business plan, signaling its dedication to decarbonising operations.
Petrobras emphasizes a preference for high-quality, domestically sourced, nature-based carbon credits, with a focus on Amazon reforestation projects. The company aims to secure a minimum of US$120 million in carbon credits by 2027, all certified by the world’s largest certifier, Verra’s Verified Carbon Standard (VCS).
The possibility exists for Petrobras to also tap into Guyana’s carbon credit market. The Architecture for REDD+ Transactions (ART) issued the world’s first TREES credits to Guyana, marking a milestone last year. It made Guyana the first country in the world to be issued carbon credits specifically designed for the voluntary and compliance carbon markets for successfully preventing forest loss and degradation.
For context, REDD+ is a framework created by the United Nations to guide activities in the forest sector that Reduce Emissions from Deforestation and forest Degradation. TREES is a REDD+ Environmental Excellence Standard.
