TotalEnergies Invests $100 Million in U.S. Forestry as Part of Net Zero Push

/in /by

TotalEnergies announced a significant $100 million investment in sustainable forestry projects in the United States. This strategic initiative is a collaboration with Anew Climate, a leader in climate solutions, and Aurora Sustainable Lands, a company specializing in carbon stewardship and forest management. 

The partnership aims to protect productive forests from extensive timber harvesting, promote sustainable management practices, and enhance the forests’ capacity to sequester carbon from the atmosphere.

Beyond Emissions: TotalEnergies’ Bold Move Towards Net Zero

The $100 million investment will support Improved Forest Management (IFM) practices across 300,000 hectares of forested land in 10 U.S. states. These include Arkansas, Florida, Kentucky, Louisiana, Michigan, Minnesota, New York, Virginia, West Virginia, and Wisconsin. 

The projects will focus on reducing timber harvesting to preserve natural carbon sinks, improving water and soil quality, protecting biodiversity, and conserving natural habitats. The carbon credits generated from these activities will be acquired by TotalEnergies and retired after 2030. 

The investment is part of TotalEnergies’ commitment to spend $100 million annually on nature-based solutions capable of generating at least 5 million metric tons of CO2e in carbon credits each year by 2030. The forest carbon credits will help the oil major offset a portion of its direct Scope 1 and 2 emissions as part of its broader climate strategy.

Scope 1+2 Emissions Reduction by 2030

From TotalEnergies Climate 2024 Progress Report

TotalEnergies has committed to a vision of becoming a net-zero energy company by 2050, a goal that aligns with the International Energy Agency’s net-zero pathway. As part of this strategy, the company aims for a 40% reduction in net Scope 1 and 2 emissions by 2030 compared to 2015 levels. 

To achieve these ambitious goals, TotalEnergies plans to spend the next decade developing the necessary projects and capabilities.

In addition to nature-based solutions, the energy company is also focusing on a combination of carbon capture and storage (CCS) technologies and e-fuels to potentially avoid up to 100 million tons of CO2 per year.

One of the key initiatives supporting this vision is the CO2 Fighters Squad, a dedicated team established in late 2018. This team is responsible for monitoring GHG emissions across the company and promoting a low-carbon mindset. Their work includes initiating energy efficiency projects, accelerating the electrification of facilities, and introducing greener energy consumption methods. 

By 2025, the CO2 Fighters Squad is expected to oversee 160 upstream and more than 200 downstream projects, resulting in significant reductions in Scope 1 and 2 emissions. These efforts are part of TotalEnergies’ broader commitment to sustainability and its strategic pivot towards cleaner energy sources.

Advancing Climate Action Through Nature

TotalEnergies’ investment is closely aligned with the U.S. government’s Voluntary Carbon Markets Principles, which emphasize integrity, transparency, and environmental protection in carbon trading. These principles were outlined in a joint policy statement issued in May 2024. TotalEnergies committed to adhering to these guidelines to ensure that its investments in carbon projects contribute meaningfully to climate action.

RELATED: US Government Releases New Voluntary Carbon Credit Market Policy Guidelines

Last month, the oil major made headlines by announcing its decision to halt its gas exploration activities in South Africa. This move highlights the growing global awareness of the harmful environmental impacts of fossil fuels and supports the broader movement towards sustainable energy solutions.

Under the Anew Climate and Aurora Sustainable Lands partnership, the latter two will provide operational oversight to the projects. This is to ensure that the carbon projects meet the highest standards of additionality and durability. 

Their collaboration highlights a shared commitment to advancing climate action through nature-based solutions that offer tangible environmental and social benefits. 

Anew Climate’s CEO, Angela Schwarz, emphasized the alignment between TotalEnergies’ comprehensive climate action strategy and Anew’s mission to create meaningful climate impact through diverse solutions. She noted that:

“…it was clear that their [TotalEnergies] 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.”

How Green Giants are Revolutionizing Carbon Stewardship

Anew Climate is a global leader in climate solutions, focusing on transparency and accountability. They offer innovative products and services to reduce or offset carbon footprints, restore the environment, and create economic value. With operations across five continents, Anew leverages technology and nature-based solutions for environmental credit markets.

Jamie Houston, CEO of Aurora Sustainable Lands, highlighted the importance of maintaining the delicate balance between forest health, soil quality, watersheds, and wildlife habitats through this partnership. 

Aurora Sustainable Lands is a leading platform for carbon removal and climate-focused asset management. Managing over 1.7 million acres of U.S. forestland previously used for industrial logging, Aurora employs a carbon stewardship strategy that maximizes carbon removal and storage. 

Utilizing advanced technologies, Aurora offers high-quality, durable nature-based carbon credits at scale. This venture is a joint effort between Anew Climate and key equity investors, including Oak Hill Advisors, EIG, and GenZero.

The collaboration with TotalEnergies will enable Aurora to enhance climate resilience across its forestlands, contributing to a substantial and lasting impact on a massive scale.

This partnership between TotalEnergies, Anew Climate, and Aurora Sustainable Lands represents a significant step forward in the global effort to combat climate change. By investing in sustainable forestry and carbon stewardship, TotalEnergies is fueling its net zero ambition while contributing to the preservation of vital ecosystems and the protection of natural carbon sinks.

The post TotalEnergies Invests $100 Million in U.S. Forestry as Part of Net Zero Push appeared first on Carbon Credits.

Taiwan to Launch Carbon Credit Exchange That Could Rake in US$131 Billion by 2030

/in /by

On October 2, 2024, Taiwan will take a significant step toward addressing climate change by launching its domestic carbon credit exchange platform, the Taiwan Carbon Solution Exchange (TCX). This development follows detailed discussions between TCX and Taiwan’s Ministry of Environment regarding the trading of domestic carbon credits. It began after the relevant regulations were enacted on August 15, 2024.

The trading platform is set to play a crucial role in the nation’s carbon reduction efforts, aiming to align Taiwan with global carbon trading mechanisms while fostering a more sustainable industrial structure. Its initial focus will be on those planning to establish new factories, as the carbon fee scheme—targeting entities emitting more than 25,000 metric tons of carbon dioxide equivalent annually—is yet to be implemented.

A New Dawn in Taiwan’s Carbon Trading

Current regulations require new large-scale factories and high-rise construction projects to offset their emissions by purchasing carbon credits from voluntary projects or implementing other offsetting measures, such as adopting high-efficiency equipment and energy-saving technologies.

Voluntary carbon emission reduction projects can be initiated by entities with annual emissions below 25,000 metric tons. These projects must adhere to internationally accepted standards for being measurable, reportable, and verifiable (MRV).

Carbon credits generated from these offsetting measures will be available for sale on the TCX platform. It will be primarily catering to buyers needing to meet environmental assessment requirements for construction and development projects. 

Additionally, these domestic carbon credits may be used to partially offset carbon fees once the collection begins, projected for 2026, with 2025 serving as a preparation period.

How TCX Will Transform Taiwan’s Carbon Market and Helps in Net Zero Goal

The TCX, operational since December 2023, is Taiwan’s only certified platform for trading international and domestic carbon credits. It serves as a marketplace where enterprises can trade, transfer, and auction carbon credits in a transparent manner. 

The platform’s core mission is to establish a robust carbon trading market that complements the international carbon trading framework. This initiative is particularly important given Taiwan’s ambitious goals to achieve net zero by 2050.

Taiwan’s net-zero goal by 2050 is a comprehensive roadmap aimed at transforming the country’s energy, industrial, and economic landscape. The plan includes a focus on four key transition strategies:

energy transformation,
industrial innovation,
lifestyle changes, and
social inclusion.

Taiwan intends to reduce its reliance on fossil fuels, increase renewable energy use, and invest in green technologies. The roadmap also emphasizes the importance of public and private sector collaboration to achieve these ambitious targets, positioning Taiwan as a leader in global sustainability efforts.

The TCX encourages businesses to adopt more sustainable practices, contributing to the broader national and global objectives of reducing greenhouse gas emissions​.

Key Features of the Carbon Trading Platform

Taiwan’s carbon credit exchange will initially focus on purchasing high-quality carbon credits from the international market to offset the shortfall in domestic emission reductions. This approach is to meet the immediate needs of Taiwanese enterprises while the country ramps up its domestic emission reduction capabilities.

Over time, the platform is expected to foster a more self-sufficient carbon credit market within Taiwan, reducing reliance on international credits​.

The platform also includes strict regulations to ensure transparency and prevent greenwashing—a practice where companies falsely claim environmental benefits for their actions. Only sellers with government-overseen emission reduction projects can auction or sell domestic carbon credits. 

Additionally, buyers cannot resell traded or auctioned domestic carbon credits, a measure designed to stabilize the market and maintain its integrity.

The Environment Minister, Peng Chi-ming, indicated that the carbon fee rate is expected to be finalized by the end of 2024, with fee collection slated to start in 2026. During the interim period, businesses will still be required to report their emissions for 2024.

From Regulation to Innovation: TCX’s Role in Taiwan’s Carbon Neutrality Journey

The introduction of the TCX is expected to have a profound economic impact. The platform could attract significant private investment, potentially bringing in over NT$4 trillion (about US$131 billion) by 2030. This influx of capital can create more than 550,000 jobs in sectors related to carbon reduction and sustainability. 

Furthermore, the TCX will contribute to Taiwan’s broader environmental goals by encouraging companies to invest in emission reduction technologies and projects, thus driving innovation in green technologies​.

Challenges and Future Outlook

Despite its potential, the success of the TCX will depend on several factors, including: 

the active participation of businesses, 
the effectiveness of government policies, and 
the platform’s ability to integrate with international carbon markets. 

Taiwan’s industrial sector, which is a significant contributor to the nation’s carbon emissions, will play a critical role in this transition. Companies will need to adapt to the new regulations and market dynamics, which may involve significant operational changes and investments in sustainable practices.

Moreover, the TCX’s success will also hinge on its ability to evolve alongside global carbon trading systems. As international carbon markets become more interconnected, the platform must ensure that Taiwan remains competitive and compliant with global standards. This includes adhering to international carbon neutrality standards and ensuring that domestic carbon credits are recognized and valued in the global marketplace.

The launch of Taiwan’s domestic carbon credit exchange platform in October marks a pivotal moment in the country’s climate strategy. By creating a structured and transparent market for carbon credits, the TCX aims to accelerate Taiwan’s transition to a low-carbon economy while fostering innovation and economic growth. 

READ MORE: Taiwan Sets Massive Target of 700K-Ton Blue Carbon Reserve by 2030

The post Taiwan to Launch Carbon Credit Exchange That Could Rake in US$131 Billion by 2030 appeared first on Carbon Credits.

LEGO Bets Bold on Renewable Resin Bricks Amid Massive Revenue Growth

/in /by

Lego is taking significant steps to replace fossil fuels in its iconic bricks with renewable and recycled plastic. Despite the higher costs, the Danish toymaker is determined to phase out oil-based materials by 2032. On top, the company delivered outstanding double-digit top-and-bottom-line growth in H1 2024, which would accelerate its swift transition into 100% sustainable bricks.

CEO Neils Christiansen revealed that,

“The company is on track to ensure that more than half of the resin it needs in 2026 is certified according to the mass balance method, an auditable way to trace sustainable materials through the supply chain, up from 30% in the first half of 2024.”

Lego’s Massive Revenue Jump

LEGO has achieved impressive financial growth in the first half of 2024, setting new records across the board. The company’s growth was driven by strong demand for its diverse product range, particularly in the U.S. and Europe.

Key Financial Highlights

Revenue: Increased by 13% to DKK 31.0 billion (from DKK 27.4 billion in H1 2023)
Consumer Sales: Grew by 14%, outpacing the overall toy industry
Operating Profit: Up by 26% to a record DKK 8.1 billion
Net Profit: Up 16% to DKK 6.0 billion (from DKK 5.1 billion in H1 2023)
Cash Flow from Operations: Jumped 60% to DKK 7.5 billion (from DKK 4.7 billion in H1 2023)
Investments: DKK 4.5 billion spent on new factories, facilities, and offices (up from DKK 3.6 billion in H1 2023)
Free Cash Flow: Increased to DKK 3.0 billion (from DKK 1.1 billion in H1 2023)

The company also increased its spending on sustainability, retail, and digital initiatives, ensuring it remains a leader in the toy industry.

Building Each Brick with Sustainable Materials

From media reports, we discovered that Lego has already tested over 600 materials in its quest for sustainable alternatives to plastic. The company plans to reduce the oil content in its bricks by spending 70% more on certified renewable resin. CEO Neils Christiansen has also stated figuratively that this would certainly increase the cost of production.

Sugarcane Based Bio-PE

Since 2018, LEGO has been using bio-polyethylene (bio-PE) for flexible parts like flowers, botanical elements, and minifigure accessories. Made from sugarcane sourced in Brazil, this material is produced in a way that aligns with WWF guidelines, ensuring sustainability without compromising food security. Today, over 200 different LEGO elements are crafted from bio-PE, and nearly half of all LEGO sets include at least one of these eco-friendly pieces.

ArMABS: Recycled Artificial Marble

LEGO’s transparent elements, such as lightsabers, windscreens, and windows, now contain 20% recycled materials from artificial marble kitchen countertops. With more than 500 different arMABS elements available, these sustainable components appear in over 60% of LEGO sets, proving that recycling can lead to crystal-clear results.

Highly Durable ePOM

For robust, rigid components like axles, LEGO is developing a new plastic called ePOM. This innovative material blends renewable energy and CO2 from bio-waste, making it the futuristic choice for LEGO’s most durable parts. Notably, the company plans to start using ePOM by 2025, marking another step forward in sustainability.

A Thing of the Past: Recycled Prototype Brick

In 2021, LEGO created a prototype brick using PET plastic from recycled bottles. However, after two years of development, it became clear that this material did not achieve the carbon reduction goals LEGO aimed for. Despite this, the project provided valuable insights that will guide LEGO as it continues to explore new materials and improve the sustainability of its bricks.

Interestingly, these bricks are permanent. Whether you bought them years ago or will buy them in the future, they all fit together perfectly. The company calls this reliable connection- ‘clutch power’. This means that every brick stacks securely, no matter when it was made.

No wonder these materials meet high standards for safety, quality, durability and now sustainability. Furthermore, the shift to greener plastic comes at a time when global toy sales are sluggish, with major competitors like Hasbro cutting jobs due to declining demand.

However, with high sales volume and strong brand value, LEGO can easily afford the production cost.

Responsible Sourcing and Strategic Partnerships

Lego wants to achieve net-zero greenhouse gas emissions by 2050 and cut emissions by 37% by 2032 based on 2019 levels. Notably, it aims to remove more than 139,000 tons of CO2e this year. One key strategy for reaching this goal is incorporating sustainable and circular materials into all products by 2032.

This involves using responsibly sourced recycled materials to minimize waste while ensuring high safety and quality standards. For instance, it sourced 18% of its resin under mass balance principles in 2023.

MUST READ: Brick by Brick: Lego Builds a Net Zero Future With Stricter Carbon Reductions for Suppliers

Unlocking Lego’s Mass Balance Strategy

Mass balance is a strategy designed to boost the use of renewable and recycled materials in all LEGO products. This model involves blending virgin fossil sources with certified renewable and recycled inputs to create their raw materials.

Source: LEGO

By doing so, LEGO reduces its dependence on virgin fossil fuels, stimulates the market, and encourages the industry to increase the production of sustainable materials. LEGO aims to achieve International Sustainability and Carbon Certification (ISCC) Plus Certification in the first half of 2024. This global certification system covers all types of sustainable feedstocks, including agricultural and forestry biomass, chemicals, plastics, packaging, bio-based materials, and renewables.

Furthermore, the company is working closely with suppliers, research institutions, and industry partners to innovate new materials. Additionally, LEGO is exploring e-Methanol with partners like European Energy and Novo Nordisk, with prototypes expected soon, which could lead to future commercial use.

By investing in renewable materials, LEGO hopes to lead the toy industry toward a greener future. All in all, it is a smart move as Christiansen confidently says,

“We used our solid financial foundation to further increase spending on strategic initiatives which will support growth now and in the future to enable us to bring learning through play to even more children.”

FURTHER READING: Barbie’s $1.3B Movie and Green Shift: Hollywood Meets Sustainability 

The post LEGO Bets Bold on Renewable Resin Bricks Amid Massive Revenue Growth appeared first on Carbon Credits.

Are Direct Air Capture Plants Facing Massive Clean Energy Challenge in the U.S.? A S&P Global Report

/in /by

With Direct Air Capture (DAC) technology gaining momentum, some companies involved are facing the significant challenge of securing enough clean power to sustain their energy-intensive operations in the US. S&P Global has scrutinized the situation and has reported the challenges and potential solutions to overcome the massive clean energy demand of DACs.

As DACs Expand, So Does the Quest for Clean Energy                                                       

Earlier this year, Climeworks launched the world’s largest DAC plant in Hellisheiði, Iceland. The location was ideal, offering abundant geothermal heat and power. But as Climeworks shifted its focus to the U.S., drawn by federal subsidies and opportunities for expansion, the company faced a new hurdle: energy procurement.

Well, Douglas Chan, Chief Operating Officer of Climeworks, emphasized the importance of understanding the U.S. grid, which the company has studied for nearly three years. They pioneer in absorbing CO2 from the atmosphere and sell the carbon offsets to major corporations such as Microsoft. However, without a reliable source of clean power, the entire purpose of this technology i.e. reducing carbon emissions could be compromised.

SEE MORE: Microsoft Signs 10-year Carbon Removal Deal with Climeworks 

In another instance, Max Scholten, Head of Commercialization at Heirloom Carbon Technologies, explained the critical need for low-carbon electricity sources. He stressed that what DAC companies sell must be a net removal of CO2, meaning they cannot emit more CO2 than they capture. This need for clean energy has placed added pressure on DAC plants to prove that their electricity sources are zero-emission, new, and “additional” to the grid.

Is Funding Enough to Navigate the U.S. Energy Landscape?

Last year, in August, the DOE announced a whopping $1.2 billion in funding to develop two major DAC facilities led by Climeworks and Occidental (Oxy). The funding was part of President Biden’s Investing in America agenda, marking the beginning of the Bipartisan Infrastructure Law’s Regional DAC Hubs program, designed to create a nationwide network of large-scale carbon removal sites.

Secretary of Energy Jennifer M. Granholm emphasized the importance of these investments by remarking,

“Addressing climate change requires not just reducing emissions but also removing existing CO2 from the atmosphere. This historic investment will help build a crucial industry for combating climate change while supporting local economies.”

For example, the landmark project is led by 1PointFive, a subsidiary of Occidental. This project will initiate the installation of the South Texas Direct Air Capture (DAC) Hub. The hub on King Ranch in Kleberg County aims to become the world’s first DAC plant capable of removing up to 1 million metric tons of CO2 annually.

Clean Power Solutions for DAC Expansion

As the U.S. power consumption continues to rise, DAC companies face long grid connection queues, some stretching over the years. Thus, many DAC companies are choosing to follow strict carbon accounting standards to meet the expectations of buyers and carbon credit exchanges.

Thus, funding is not a problem for DAC plants, but energy procurement is. S&P Global reported that Puro.earth, the carbon removal certifier requires detailed energy emissions analysis for DAC projects listed on its exchange. Such projects must use renewable energy certificates or similar instruments to offset grid emissions, ensuring that the electricity is generated and consumed within the same physical grid and calendar year.

DAC Projects in the U.S.

source: Reuters

The good news is the challenge of securing sufficient clean power has not deterred the sector’s growth. Consequently, Climeworks’ upcoming facility, part of the Battelle-led Project Cypress hub in Louisiana, is set to capture about 1 MMTCO2 annually. This is much more than its current Iceland plant, Mammoth. This project also comes under DOE’s 1.2 billion funding program. Notably, Climeworks is working with renewable energy developers to secure virtual power purchase agreements to achieve this target.

Meanwhile, Heirloom’s initial projects, also part of Project Cypress, will rely on additional wind, solar, and storage facilities. This approach is crucial as DOE has committed around $600 million each to support large-scale DAC hubs on the Gulf Coast.

MUST READ: Altman-Backed Company Opens Biggest US Direct Air Capture Plant 

Furthermore, this level of scrutiny highlights the importance of “additionality”—a concept ensuring that the clean power used by DAC plants is genuinely new and not merely diverted from other uses.

In conclusion, DAC offers great potential in combating climate change. However, as it expands in the U.S., securing clean energy to power operations is a major challenge. S&P Global has scooped this paramount factor and analyzed it focusing on innovative energy solutions and sustainability. With these viable solutions, major carbon capture companies like Climeworks and Heirloom are bound to succeed.

FURTHER READING: U.S. DOE Injects $54.4M to Boost Carbon Management Tech and Cut Carbon Emissions 

The post Are Direct Air Capture Plants Facing Massive Clean Energy Challenge in the U.S.? A S&P Global Report appeared first on Carbon Credits.