Brazilian oil company Petrobras has made its first carbon credit purchase, the state-run company said on Tuesday, seeking to burnish its environmental credentials in a broader push to become more sustainable.
Petrobras bought 175,000 carbon credits from Projeto Envira Amazonia in the Amazon rainforest, it said in a securities filing, adding that it plans to spend at least $120 million in carbon credits by 2027.
The company had previously said it would spend up to $120 million, but energy transition chief Mauricio Tolmasquim said the amount will now be revised for the company’s 2024-2028 business plan.
“These ($120 million) are the minimum,” Tolmasquim, told Reuters.
Carbon credits are tradable permits that allow the owner to emit certain amounts of greenhouse gases. Each credit permits the emission of one metric ton of carbon dioxide or the equivalent in other greenhouse gases.
The certification of the credits follows Verra’s Verified Carbon Standard (VCS), the largest certifier of the voluntary carbon market in the world, Petrobras said.
Projeto Envira Amazonia started in August 2012 with the aim of protecting about 39,000 hectares of forest in the western state of Acre, its website says.
Gustavo Pinheiro, a coordinator at the Climate and Society Institute (iCS), welcomed the Petrobras move into the carbon market but said 175,000 credits is a small amount for a company of its size. He estimated that Petrobras paid less than $1 million for the 175,000 credits.
