Shell Invests $40 Million in Carbon Credit Developer Carbonext and Advances in Reducing CO2 Emissions

The Oil And Gas Company Shell Seeks More Sustainability In Its Production Chain And, Advancing Its CO2 Emissions Reduction Project, Made An Investment Of US$ 40 Million In The Carbon Credit Company Carbonext.

Taking another step towards contributing to sustainability and reducing environmental impacts, Shell became a shareholder of the carbon credit developer Carbonext on Tuesday, (07/11). The company made an investment of US$ 40 million and will have preference in Carbonext’s carbon market, thus accelerating its CO2 emissions reduction project in its production chain.

Carbon Credit Developer Carbonext Received A US$ 40 Million Investment From Shell, Expanding CO2 Emissions Reduction Project

Shell announced last Tuesday a multi-million dollar investment of US$ 40 million in the carbon credit development company Carbonext, targeting the international carbon market, which could be worth up to US$ 50 billion by the year 2030. With the investment in the carbon company, the oil company will now have priority in the carbon market for the coming years, also becoming a shareholder of the company.

The main objective of the company in the multi-million dollar investment in the carbon credit developer is to collaborate with its CO2 emissions reduction project. This is because André Araújo, president of Shell Brazil, commented that the oil company aims to offset 120 million tons of CO2 per year by 2030. Thus, the investment in Carbonext will be essential for this, as the company carries out preservation projects over millions of hectares in the Amazon Rainforest.

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In the oil and natural gas production market, several companies, like Shell, are investing in the carbon credit segment. This is because it is a way to offset emissions through nature-based solutions, such as Carbonext’s sustainability and environmental preservation project.

 Energy transition is increasingly becoming a near reality for these companies and, while oil companies do not find an alternative to replace CO2 emissions with a sustainable solution, the main measure to reduce impacts is to capture carbon with trees, investing in environmental projects. 

Shell’s Investment In Carbonext To Reduce CO2 Emissions Will Contribute To The Growth Of The Carbon Credit Market

Following the announcement of the multi-million dollar investment in Carbonext by Shell, the carbon credit development company highlighted that the amount will be applied to forest preservation and the development of new business areas, such as bioeconomy and reforestation in the Amazon Rainforest.

Thus, the amount will be used for improvements in the development processes of carbon credits, which aim to give value to standing forest, an economically viable alternative to livestock and agriculture.

Carbonext is a reference in the carbon credit sector and has international-level clients, such as Raízen, Isa Cteep, TIM, C6 Bank, Uber, Liberty Seguros, Buser, among other corporations. Thus, 70% of Shell’s investment for CO2 emissions reduction will remain in the forest itself, as a way to expand environmental preservation and carbon capture techniques. 

Finally, the partnership with Shell, which is a shareholder of the carbon credit group, will enable new innovations in the fields of biotechnology and monitoring of the Amazon Rainforest. Moreover, the companies also announced that the next 100 days will be crucial for the partnership, as they will conduct a series of technical studies for environmental preservation solutions in the region.