TotalEnergies, a France-based energy leader, has partnered with Anew Climate and Aurora Sustainable Lands to invest $100 million in U.S. forestry operations. The initiative, focusing on forest conservation and carbon credit generation, aims to bolster TotalEnergies’ climate goals and contribute to carbon neutrality. This deal aligns with the company’s strategy to reduce emissions and promote environmental sustainability.
TotalEnergies’ new venture builds on its ongoing efforts to mitigate carbon emissions. Previous instances saw the company increasingly investing in nature-based solutions to achieve its climate targets. This collaboration marks a significant step in its commitment to preserving natural carbon sinks and improving biodiversity. Historically, TotalEnergies has pursued similar investments, reflecting a consistent approach towards environmental stewardship.
The current partnership is noteworthy as it emphasizes improved forest management across 300,000 hectares in 10 U.S. states. This collaboration is expected to yield benefits such as reduced timber harvesting and enhanced water and soil quality. The preservation of biodiversity and natural habitats stands as a critical outcome of these forestry operations.
Climate Goals and Carbon Credits
Under the agreement, TotalEnergies will acquire carbon credits generated by these projects. These credits will offset its Scope 1 and 2 emissions, furthering its objective of achieving carbon neutrality by 2050. The company targets a 40% reduction in greenhouse gas emissions by 2030, compared to 2015 levels. The initiative is part of TotalEnergies’ broader strategy to invest $100 million annually in projects that generate substantial carbon credits.
“We are thrilled to partner with such experienced specialists as Anew Climate and Aurora Sustainable Lands, who develop high-quality projects aimed at the sustainable preservation of natural carbon sinks which is essential to achieve carbon neutrality,” said Adrien Henry, Vice President Nature Based Solutions at TotalEnergies Exploration & Production.
Partner Expertise and Goals
Texas-based Anew Climate, majority-owned by TPG Rise, specializes in climate solutions and environmental credit marketing. This agreement follows Anew’s recent deal with Microsoft (NASDAQ:MSFT) for nature-based carbon removal credits. Aurora Sustainable Lands, a joint venture involving Anew and equity investors, focuses on managing industrially harvested forests to produce high-integrity carbon credits.
Anew Climate CEO Angela Schwarz emphasized the alignment between TotalEnergies’ comprehensive climate strategy and Anew’s mission. Aurora’s CEO Jamie Houston highlighted the importance of maintaining forest health and ecosystem balance through this investment. Both leaders stressed the significant climate impact achievable through this collaboration.
The joint initiative reflects the growing trend of corporations investing in nature-based solutions to meet climate goals. The project underscores the importance of corporate responsibility in environmental conservation and climate action. TotalEnergies’ investment in forestry carbon projects is a strategic move to enhance climate resilience and promote sustainable practices across various ecosystems.
