TotalEnergies has committed $100 million to preserving American forests through a groundbreaking agreement with Anew Climate, a North American leader in climate solutions, and Aurora Sustainable Lands, a U.S. carbon-stewardship company. The investment marks the largest-ever purchase of carbon offsets tied to U.S. timberlands and is aimed at enhancing sustainable forest management practices across 300,000 hectares (740,000 acres) in 10 states, including Louisiana, New York, and Kentucky.
The deal spans 20 carbon projects across states like Arkansas, Florida, Michigan, and Virginia, focusing on Improved Forest Management (IFM) practices. These initiatives are designed to protect forests from heavy timber harvesting, advance sustainable management, and boost their capacity to store carbon. Anew Climate and Aurora will oversee operations to ensure the highest standards of environmental integrity and project durability.
The environmental benefits expected from this initiative include the preservation of natural carbon sinks, improvement of water and soil quality, protection of biodiversity, and conservation of natural habitats. The carbon credits generated from these projects will be acquired by TotalEnergies and retired beyond 2030, helping the company offset its remaining direct Scope 1 and 2 emissions after prioritizing emission avoidance and reduction.
Aurora Sustainable Lands, backed by T. Rowe Price Group subsidiary Oak Hill Advisors, has already reduced timber harvests on its properties by more than 50%. This shift focuses on creating long-term carbon sinks rather than maximizing timber revenue. Aurora's approach includes selective logging to encourage natural regrowth and preserving long-lived tree species like Louisiana's cypress.
Anew Climate, which facilitated the deal, determined the carbon content, registered the offsets, and manages verification. "Anew Climate is honored to partner with TotalEnergies on their journey to reach carbon neutrality," said Angela Schwarz, CEO of Anew Climate. "Their commitment to emissions reduction aligns perfectly with our mission."
TotalEnergies' investment aligns with the U.S. government's Voluntary Carbon Markets Principles, which the company supports. Adrien Henry, Vice President of Nature-Based Solutions at TotalEnergies Exploration & Production, emphasized the importance of sustainable carbon sinks for achieving carbon neutrality. "We are thrilled to partner with such experienced specialists as Anew Climate and Aurora Sustainable Lands," Henry said.
The price for these offsets remains largely confidential, though offsets like those sold by Weyerhaeuser at $29 each highlight their value in the market. TotalEnergies plans to use these credits starting in 2030, gradually increasing their use to reach net-zero emissions by 2050. The company's actions are part of a broader strategy to enhance transparency and integrity in voluntary carbon markets, in line with recent U.S. government guidelines.
