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

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.

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.

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