Avoiding and reducing emissions are the main priorities to decarbonize the energy sector. Natural climate solutions (NCS) play an additional role, restoring ecologies to capture and store existing carbon from the atmosphere. The challenge is identifying and measuring NCS projects that will have a positive impact on climate, environment and society.
As part of a climate portfolio of 15 projects, in which BRL 14 million was invested in 2019, Petrobras is sponsoring the “Florestas de Valor” (Forests of Value) project in the Brazilian Amazon. The project aims to conserve more than 2 million hectares of rain forest – a powerful natural carbon sink. A non-profit partner, the Institute for Forest and Agricultural Management and Certification (IMAFLORA), is carrying out the work.
Between 2014 and 2020, Florestas de Valor saved an estimated 28,000 tonnes of carbon dioxide emissions from release into the atmosphere through deforestation. Between 2018 and 2020, it created 20 forest nurseries and established 133 hectares of agroforestry systems.
Local communities involved have generated BRL 1.4 million of income (2018-2020). Sustainable production chains are encouraged and management practices including family farming are helping protect hundreds more hectares in the Amazon.
With support from the Institute for the Development of Social Investment (IDIS), a cost benefit analysis was carried out, showing that for each BRL 1 invested, approximately BRL 7.94 are generated in environmental and social benefits.
In 2019, Petrobras developed a methodology to guide the carbon quantification of forest conservation and recovery projects. Using it to assess its climate portfolio, which includes 100,000 hectares of recovered or conserved land, indicated a total of 850,000 tonnes of avoided carbon dioxide emissions.
Petrobras is leading the global NCS work stream for OGCI member companies seeking to deliver environmental, biodiversity and social benefits, in addition to carbon mitigation, in their projects.