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TotalEnergies Invests $100 Million in Forest-Based Carbon Reduction Projects

TotalEnergies Invests $100 Million in Forest-Based Carbon Reduction Projects

France-based energy giant TotalEnergies announced a new agreement with climate solutions provider Anew Climate and U.S. forestry-focused carbon removal platform Aurora Sustainable Lands to invest $100 million in forestry operations to preserve caron sinks, and help support the energy company’s achievement of its climate goals.

The investment will support Improved Forest Management practices across a portfolio of 20 of Aurora’s carbon projects in 10 U.S. states, covering 300,000 hectares. According to the companies, environmental benefits from the projects include the preservation of natural carbon sinks by reducing timber harvesting, water and soil quality improvement, and biodiversity protection as well as natural habitat conservation.

Under the new agreement, TotalEnergies will acquire carbon credits generated by the projects, which it will use to offset part of its remaining direct Scope 1 & 2 emissions. TotalEnergies has set climate goals including achieving carbon neutrality across Scope 1 and 2 by 2050, with an intermediate target to reduce greenhouse gas emissions by 40% by 2030, on a 2015 basis.

As part of its climate strategy, TotalEnergies has announced plans to invest $100 million per year in projects capable of generating at least 5 million metric tons of CO2e of carbon credits per year by 2030.

Adrien Henry, Vice President Nature Based Solutions at TotalEnergies Exploration & Production, said:

“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.”

Founded in 2001, and majority-owned by alternative asset manager TPG’s impact investing platform TPG Rise, Texas-based Anew provides climate solutions aimed at helping companies to reduce their carbon footprints and help restore the environment, including technological and nature-based solutions, and marketing of environmental credits for low carbon fuel, carbon, renewable energy, and emissions markets. The new transaction follows a recent 1 million carbon credit deal by Anew with Microsoft, also involving Aurora.

Anew Climate CEO Angela Schwarz said:

“As we worked closely with the TotalEnergies Nature Based Solutions team throughout the stringent due diligence process, it was clear that their commitment to avoiding and reducing emissions as a first principle while recognizing the co-benefits of investing in meaningful carbon projects as part of a comprehensive climate action strategy aligned perfectly with Anew’s mission. We have a shared belief that an ‘all of the above’ strategy is required to achieve meaningful climate impact.”

Aurora, a joint venture between Anew Climate and equity investors led by Oak Hill Advisors, AB CarVal, EIG and GenZero, invests in industrially harvested forests to deliver high-integrity, verifiable carbon credits. The company has acquired more than 1.7 million acres of U.S. forestland with a history of industrial logging, which it manages with a carbon stewardship strategy focused on maximizing natural carbon removal and storage potential. Carbon credits generated from Aurora’s projects are marketed by Anew Climate.

Jamie Houston, CEO of Aurora Sustainable Lands, said:

“Aurora’s carbon stewardship enhances climate resilience while safeguarding vital ecosystems across our forestlands. Thanks to TotalEnergies’ steadfast trust and investment across our portfolio, we can maintain the delicate balance between forest health, soil quality, watersheds, and wildlife habitats. Together we are yielding substantial and lasting climate impact at a massive scale.”

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