Engie, the world’s largest independent power producer, has made a significant commitment to sustainability by pre-ordering 5 million tons of nature-based carbon removals from Catona Climate, a climate finance company.

This move is part of Engie’s strategy to meet its Net Zero target by 2045. It also represents a major investment in nature-based solutions, which are becoming crucial for climate change mitigation.

A Major Deal for High-Quality Climate Solutions

The recent reports from the Intergovernmental Panel on Climate Change (IPCC) have highlighted the necessity of scaling up carbon removal methods to achieve climate goals. The latest IPCC report emphasizes nature-based solutions, which can remove at least 3 gigatons of CO2 annually by 2030. 

Traditionally, efforts focused on technological solutions for carbon capture. However, nature-based solutions are also gaining traction due to their additional environmental benefits, as evidenced in recent Xpansiv report. 

Engie’s partnership with Catona Climate reflects a broader industry trend toward integrating ecosystem restoration projects into corporate carbon strategies. This shift highlights the growing recognition of carbon removal alongside direct emission reductions in achieving net zero emissions.

RELATED: Ørsted Secures Major Carbon Removal Deal with Microsoft

Engie’s pre-order aligns with these findings and marks a significant step up from its previous smaller-scale carbon offset projects. However, scaling these projects faces several challenges, including complexities related to impacts on local communities and balancing carbon sequestration with other environmental benefits.

This is where Catona Climate’s solutions come in. 

Based in California, Catona Climate funds high-impact, nature-based projects through carbon removal purchases. These projects are aligned with science-based targets and focus on regenerative land management, reforestation, and combating deforestation. 

The climate finance company sources, invests, and monitors these projects, offering businesses a portfolio of high-quality climate solutions. By creating clear demand signals, Catona aims to de-risk carbon investments and accelerate the development of high-quality climate solutions. 

A Growing Trend of Nature-Based Carbon Removal

The agreement enables Engie to secure carbon removal credits from multiple projects at fixed prices, offering financial stability and predictability. Under the partnership, the carbon removal credits will be issued between 2030 and 2039, with Engie having the flexibility to source from multiple projects at locked-in pricing. 

Jérôme Malka, a member of Engie’s Executive Committee, emphasized the shared commitment to quality and impact between Engie and Catona. He further highlighted the benefits of this deal, saying that:

“Collaborating with Catona to address residual emissions was a natural fit given our alignment on quality and impact, and our shared commitment to supporting projects that not only remove carbon, but also provide meaningful benefits to local ecosystems and communities.”

Tate Mill, CEO of Catona Climate, stressed the importance of the partnership with Engie to drive capital and expand nature-based projects. 

“Those signals help us de-risk carbon investments and drive more capital through our trusted network of project developers to accelerate the development of nature-based carbon removal solutions so critical to turning the tide on climate change.”

Engie’s collaboration with Catona is a key component of its strategy to decarbonize clients’ operations and achieve net zero. Here are the other major operational levers of action the company is undertaking. 

What’s Inside Engie’s Ambitious Net Zero Goal?

Engie is committed to a bold decarbonization strategy, aiming to achieve net zero across its three scopes. In 2023, the Group’s carbon emissions totaled 158 million tonnes of CO2 equivalent, a significant reduction of 39% from 2017’s 260 million tonnes.

The French power company’s roadmap sets a goal to cut all emissions by at least 90% between 2017 and 2045, with the remaining 10% to be neutralized. The company’s 2030 decarbonization trajectory, certified as “well below 2°C” by the Science-Based Targets initiative (SBTi), involves four main goals to reduce emissions. These include:

59% reduction in energy production emissions (scopes 1 and 3), 
34% decrease in emissions from gas sales (scope 3), 
66% reduction in carbon intensity from energy production (scope 1) and consumption (scope 2), and 
56% cut in the carbon intensity of energy sales (scopes 1 and 3).

To achieve these targets, the power company is adopting several key strategies:

Phase Out Coal: The Group plans to completely eliminate coal by 2025 in Europe and by 2027 globally.
Expand Renewable Energy: ENGIE aims for renewables (solar, onshore, and offshore wind) to comprise 58% of its electricity generation mix by 2030, boosting production capacity by 50 GW by 2025, reaching 80 GW by 2030. Additionally, 10 GW of battery storage capacity will be installed, mainly in Europe and the US, to enhance the flexibility of the energy mix.
Increase Green Gases: The biomethane production capacity is targeted to reach 10 TWh/year in Europe by 2030, with an injection capacity of 50 TWh/year across ENGIE’s networks. Green hydrogen is also a crucial component, with a goal of producing 4 GW by electrolysis by 2030, supported by a 700km transport network and 1 TWh storage capacity.

Notably, the Group aims to manage 30 TWh/year of decarbonized hydrogen and establish over 100 hydrogen refueling stations.

Finally, Engie commits to a program to reduce carbon emissions, targeting 45 million tons of CO2 eq. avoided each year. Part of this goal is investing in 5 million tons of carbon credits, which what the company just did.

Engie’s pre-order from Catona represents a step towards achieving its net zero goal by 2045. This collaboration aims not only to reduce carbon emissions but also to support local ecosystems and communities, ensuring the long-term viability of nature-based carbon removal solutions.

READ MORE: Google, Meta, Microsoft, and Salesforce Launch “Symbiosis”, Pledging for 20M Tons of Nature-Based CDR Credits

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In the fight against climate change, effective emission reduction policies are more essential than ever. Gold Standard, the leading Geneva-based nonprofit, drives ambitious climate action through solid standards and verified impacts and is rolling out new norms for government emission reduction policies. This innovative initiative, currently in its pilot phase, will provide governments with a robust framework to certify and validate the impact of their emission reduction efforts.

Unveiling Gold Standard’s Groundbreaking Climate Certification Initiative

The press release states that:

Gold Standard’s Policy Requirements and Procedures allow for the certification and crediting of greenhouse gas reductions or removals achieved as a result of the introduction of new policies or regulations. 

This policy represents a significant advancement in the field of carbon finance, creating a pathway for governments to receive recognition and financial support for their climate policies.

Building Trust in Emission Reduction Policies

Adhering to Gold Standard’s rigorous criteria ensures the credibility and effectiveness of emission reduction policies. Governments can demonstrate the real-world impact of their initiatives, enhancing transparency and building trust among stakeholders, including international organizations, investors, and the general public.

How the Certification Process Works

The certification process under Gold Standard’s new initiative involves several key steps:

1. Policy Assessment

Governments submit their emission reduction policies for evaluation. This includes a detailed analysis of the policy’s design, implementation strategy, and expected outcomes.

2. Impact Evaluation

It conducts a thorough review to assess the actual impact of the policy. This involves measuring the reduction in greenhouse gas emissions and other environmental benefits.

3. Verification and Certification

Once the impact is verified, the company issues a certification along with carbon credits that can be used to attract funding and investment.

source: Gold Standard

How Governments Benefit from Gold Standard’s Climate Policy

Governments that participate in this certification process stand to gain numerous benefits:

Increased Credibility: Certification by a reputed body like Gold Standard enhances the credibility of their climate policies.
Financial Incentives: Certified emission reductions can be translated into carbon credits, opening new avenues for carbon finance.
International Recognition: Certification provides international recognition, positioning governments as leaders in climate action.

The Broader Impact on Climate Action

Gold Standard’s new certification norms can potentially drive significant progress in global climate action. This initiative encourages governments to implement more ambitious and effective climate policies by providing a reliable framework for evaluating and certifying emission reductions. Furthermore, the financial incentives associated with certification can help mobilize additional resources for climate action.

By pioneering these new norms, the company is helping governments prove the effectiveness of their emission reduction policies and secure the financial support necessary to scale up their efforts. This initiative marks a significant step forward in the global fight against climate change. We can infer, that it sets a new standard for transparency, accountability, and impact in climate policy.

FURTHER READING: Gold Standard Suspends Russian Carbon Project (carboncredits.com)

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On June 4 Occidental Petroleum and BHE Renewables announced their joint venture to extract high-purity lithium from Berkshire’s geothermal facility in California. Together, they plan to revolutionize commercial lithium production by installing TerraLithium’s Direct Lithium Extraction (DLE) technology. This partnership marks a significant step in the advancement of sustainable energy solutions.

We shall deep dive into the JV details and explore the technology in the next paragraphs:

Oxy-BHE Synergy Leading the Future of Sustainable Lithium Extraction

 The collaboration aims to leverage the strengths of both companies. Occidental will bring its expertise in chemical engineering and large-scale operations while BHE Renewables will contribute its knowledge of renewable energy and environmental sustainability.

Alicia Knapp, President and CEO of BHE Renewables has further assured that,

“This joint venture with TerraLithium represents a significant advancement in BHE Renewables’ commitment to pursuing commercial lithium production that is environmentally safe, commercially viable, and leads to good outcomes for the Imperial Valley community.”

She further envisions making Imperial Valley a global leader in lithium production.

After successfully demonstrating the technology, BHE Renewables will construct, own, and operate commercial lithium production facilities in California’s Imperial Valley. The joint venture also plans to license the technology and set up commercial lithium production facilities outside the Imperial Valley.

READ MORE: Global Lithium Reserves and Resources Surge 52% in Q1 2024 (carboncredits.com)

Oxy’s TerraLithium Acquisition Sparks Lithium Revolution

The demand for EVs and consumer electronics propels the lithium market. It is projected to soar from $22.2 billion to $89.9 billion by 2030. Conventional lithium production methods, like evaporation ponds, pose significant environmental concerns. Moreover, production facilities are heavily concentrated in Australia, Chile, and China.

From the company’s climate report, we discovered that Oxy’s acquisition of TerraLithium in 2022, now a wholly owned subsidiary, is a game-changer.

formed through a partnership with All-American Lithium in 2019, TerraLithium boasts patented technologies capable of cost-effectively extracting trace lithium from waste brines, ensuring ultra-high-purity lithium while minimizing environmental impacts. By acquiring the remaining interests, Oxy harnesses its expertise in chemical plant operations and brine management, promoting sustainable lithium production and securing strategic domestic lithium sources. TerraLithium’s demonstration plant in Brawley, California, near the Salton Sea, is slated to commence operations in 2024.

Jeff Alvarez, President and General Manager of TerraLithium being extremely optimistic about the merger, commented,

“Creating a secure, reliable, and domestic supply of high-purity lithium products to help meet growing global lithium demand is essential for the energy transition. The partnership with BHE Renewables will enable the joint venture to accelerate the development of our Direct Lithium Extraction and associated technologies and advance them toward commercial lithium production.”

TheTerraLithium Technology Advantage

TerraLithium owns patented Direct Lithium Extraction (DLE) technologies that transform any lithium-containing brine into a superior and responsibly sourced lithium supply. It leverages Oxy’s expertise in subsurface and chemical engineering, coupled with a track record in technology scale-up, pilot project development, and global commercialization.

This lithium extraction process promises higher efficiency and lower environmental impact than traditional methods. It minimizes water usage and reduces carbon emissions.

Notably, BHE operates 10 geothermal power plants in California, processing 50,000 gallons of lithium-rich brine every minute and generating 345 MW of clean energy.

This sustainable technology is set to meet the growing demand for lithium, crucial for EV batteries and renewable energy storage. Thus, aligning with both companies’ commitments to environmental stewardship to a low-carbon future.

Oxy’s Commitment to Net Zero goals

Oxy is committed to being part of the climate change solutions and developed the Net-Zero Strategy in alignment with the Paris Agreement. Being the largest oil and gas producers in the U.S., they have established key operations in the Permian and DJ basins and offshore in the Gulf of Mexico.

Furthermore, their subsidiary, Oxy Low Carbon Ventures, spearheads innovative technologies and business strategies that drive economic growth while curbing emissions. They are committed to global carbon management to propel a transition towards a lower-carbon future.

Additionally, it attracted significant new investments into low-carbon projects like DAC, carbon sequestration hubs, hydrogen, and notably, lithium.

source: Occidental

Warren Buffet’s Bold Lithium Bet

In 2021, Warren Buffett’s Berkshire Hathaway Inc. launched a groundbreaking plan to extract lithium from the superhot geothermal brines beneath California’s Salton Sea. It was believed to be a process that had never been explored before.

Here’s the image of it:

source: BHE

In 2022, they launched a demonstration project with this innovative technology. The strategic JV with Occidental is an extension of this plan. BHE Petroleum notes that if these demo projects succeed then construction of the first commercial plant could start as early as 2024. As already explained before it would essentially provide an environmentally responsible domestic source of lithium. Most significantly, all energy used in this lithium production process would be 100% renewable.

BHE Renewables is making strides in lithium production research in California’s Imperial Valley. Lithium, a crucial mineral for lithium-ion batteries used in cellphones, laptops, and EVs, dominates the brine processed at BHE Renewables’ geothermal facilities.

Will this JV Spark a Lithium Boom in the Future?

The demand for lithium is surging with the rise of EVs and renewable energy storage solutions. Technically the joint venture aims to capture a significant share of this expanding market. Furthermore, TerraLithium’s efficient and eco-friendly extraction process positions it as a competitive player in the industry.

Looking ahead, Occidental and BHE Renewables plan to scale up TerraLithium’s deployment. They are exploring opportunities to implement this technology at various sites. The goal is to enhance the supply chain for lithium, ensuring a stable and sustainable source for future energy needs.

Global oil giants are entering the electrification sector as the US and EU promote higher EV adoption and reduced fossil fuel dependency. Subsequently, Exxon Mobil aims to commence lithium production from sub-surface wells by 2027. Meanwhile, European oil leaders BP and Shell have directed investments toward EV charging stations as integral components of their energy transition strategies.

Last but not least, Richard Jackson, President, of US Onshore Resources and Carbon Management, Operations at Occidental has expressed himself that:

“By leveraging Occidental’s expertise in managing and processing brine in our oil and gas and chemicals businesses, combined with BHE Renewables’ deep knowledge in geothermal operations, we are uniquely positioned to advance a more sustainable form of lithium production. We look forward to working with BHE Renewables to demonstrate how DLE technology can produce a critical mineral that society needs to further net zero goals.”

All said and done, the partnership between Occidental and BHE Renewables signifies a major leap forward in lithium extraction technology and a transition to a greener future.

FURTHER READING: BlackRock Places $550M Bet on Occidental’s DAC Project STRATOS (carboncredits.com)

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Starbucks faced a challenging second quarter with declines across major financial metrics, including traffic, revenue, and income, resulting in its stock price plunging. Despite this, the company remains committed to sustainability, aiming to reduce its climate impact by 50% by 2030 through its ambitious “Greener Stores” initiative.

Starbucks Financials Are Boiling Down

Starbucks holds a premium status in the hearts and habits of many, yet its recent quarter revealed a harsh reality: even major consumer companies face tough times. Indeed, Starbucks’ latest results were undeniably dismal.

Starbucks’ challenging second quarter, which concluded on March 31, delivered disappointing results across the board. Key metrics such as traffic, revenue, and income experienced declines:

4% decrease in comparable-store sales
2% decline in consolidated net revenue
2.4% drop in operating margin
14% decline in earnings per share

Investors have recently taken a pessimistic view, with Starbucks’ stock dropping about 7% following the report of a quarterly decline in comparable-store sales on April 30. The stock subsequently reached a 52-week low shortly after the company announced its fiscal second-quarter results.

Source: The Motley Fool

This marked Starbucks’ first revenue downturn since the onset of the pandemic, a stark departure from the company’s long-term target of high-single-digit growth. Yet, as a brand with a 50-year history, Starbucks remains steadfast in its commitment to champion sustainability in the industry. 

The coffee chain set an ambitious goal of reducing its climate impact by 50% by 2030. This bold target includes both the direct and indirect carbon footprint of Starbucks. And a big part of this goal is the restaurant’s “Greener Stores” initiative. 

The Greener Stores Program

Starbucks designated nearly 16% of its 38,587 cafes as Greener Stores, meeting strict criteria for waste, energy, and water conservation. This marks nearly twofold increase from April 2023, with the aim of certifying 10,000 stores worldwide by the end of 2025. The majority, totaling 5,488 locations, are situated in North America, out of Starbucks’ global network of 38,600 cafes.

Across Latin America and the Caribbean, all new Starbucks stores adhere to Greener Stores standards. Meanwhile, the company’s real estate team is evaluating which markets should follow suit.

To achieve Greener Store status, locations must undergo an independent audit by SCS Global Services, confirming investments and practices across eight environmental impact areas, including:

The Starbucks location in Williamsburg, Virginia, is among the six sites recently recognized as Greener Stores of the Year. Originally a 100-year-old home, this building was repurposed into a cafe featuring:

Renewable energy sourced from the local grid.
An on-site rainwater collection system for landscape irrigation.
Banquettes crafted from recycled wood.

In the United States, the implementation of Greener Stores practices has slashed energy and water use by 30%. This yielded nearly $60 million in annual operational savings. As part of Starbucks’ broader corporate pledge, the company aims to halve emissions, water consumption, and landfill waste by 2030.

Starbucks GHG Emissions Reduction Goal

The coffee chain giant aims to achieve 50% absolute reduction in scope 1, 2 and 3 greenhouse (GHG) emissions involving all of Starbucks direct operations and value chain. The food company uses 2019 GHG emissions as a baseline and reported an 18% increase in emissions in 2023. 

To address this environmental impact, the coffee giant has been busy expanding its Greener Stores program. Slashing waste and energy through this initiative means reducing Starbucks carbon footprint, too. 

According to Michael Kobori, Starbucks’ chief sustainability officer, the long-term goal is for all new stores to be constructed according to Greener Stores guidelines, with existing locations retrofitted as updates become necessary. The standards used in Greener Stores program were developed in partnership with World Wildlife Fund (WWF) and SCS Global Services.

Taking inspiration from the LEED certification program, Starbucks introduced the Greener Stores framework in September 2018. This initiative builds upon Starbucks’ previous investment in the Leadership in Energy and Environmental Design (LEED) certification by the U.S. Green Building Council, which acknowledges environmentally conscious construction practices and design. 

Notably, Starbucks played a role in establishing the LEED for Retail designation. But unlike the LEED program, the Greener framework places a strong emphasis on operational metrics.

The Growing Trend of Green Standards in the Restaurant Industry

The adoption of standard frameworks like Greener Stores is becoming increasingly common within the restaurant industry. This is particularly among chains facing scrutiny from shareholders regarding their carbon emissions and sustainability efforts, noted Alastair MacGregor, national business line executive and green buildings analyst at consulting firm WSP.

Many establishments prioritize passive architectural design strategies aimed at reducing energy consumption. These strategies include maximizing natural lighting in seating areas and selecting appropriately sized food preparation and ventilation equipment for each location.

Last year, the world’s largest McDonald’s franchisee had also revealed a new standard for sustainability in restaurants to reduce its growing carbon emissions. The food chain partnered with UBQ Materials which employs advanced technology that can avoid GHG emissions of >14 kg/CO2 equivalent.

READ MORE: Sustainability Supersized: McDonald’s and UBQ Materials Set New Standards

However, smaller retail organizations often struggle to justify the initial costs of implementing technologies that haven’t yet gained widespread acceptance.

Starbucks offers its Global Academy course free of charge to suppliers interested in staying informed about the company’s procurement requirements. It is also free to other retailers aiming to reduce the environmental impact of their real estate.

Starbucks is navigating through financial turbulence while steadfastly committing to slash its carbon footprint for a greener future. The Greener Stores initiative shows how the company is leveraging sustainability to drive long-term growth and operational efficiency. 

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