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Shell invests $38 million in carbon credit projects in Brazil
Global Banking & Finance Review®
Company
By Rafaella Barros
SAO PAULO (Reuters) – Shell said on Monday it has invested 200 million reais ($38.07 million) into a Brazilian preservation-focused company.
Carbon credit developer Carbonext runs preservation projects across more than 2 million hectares (4.9 million acres) of the Amazon Forest that are owned by companies seeking to capitalize on the carbon market.
Carbonext then generates carbon credits that can be sold. Shell will now have preferential access to the company’s carbon market, although will not receive discounted prices.
“Associating our company with Carbonext is an important step towards our goal of offsetting 120 million tonnes of CO2 a year by 2030,” Andre Araujo, Shell Brasil’s president said in a note, with the company also backing a global initiative to hit net zero in emissions by 2050.
($1 = 5.2536 reais)
(Reporting by Rafaella Barros; Writing by Carolina Pulice; Editing by Christian Schmollinger)
A carbon credit is a permit that allows the holder to emit a certain amount of carbon dioxide or other greenhouse gases. One credit typically permits the emission of one ton of carbon dioxide.
The Amazon Forest is the largest tropical rainforest in the world, known for its vast biodiversity and crucial role in regulating the global climate.
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