Vale concludes its first acquisition of carbon credits

Brazilian mining giant Vale concluded its first acquisition of carbon credits as part of efforts to boost sustainable solutions for its operations.

The contract, which will run until 2030, represents the purchase of around 133,000 credits, equivalent to protecting approximately 50,000ha of Amazon rainforest this year, Vale said in a statement.

Each carbon credit corresponds to 1,000t of carbon dioxide equivalent that was not emitted into the atmosphere.

The company purchased the carbon credits from a farm in Pará state called Fazenda Pacajá, controlled by Grupo Algar, under the REDD+ project. It was selected following a study of more than 60 initiatives carried out by Vale.

“Of this total, we shortlisted five, and we ended up choosing the Fazenda Pacajá project due to its social and environmental benefits, its concern with co-benefits and its long-term view of the region," said Gustavo Luz, the equity stakes manager of the fund created by Vale to acquire carbon credits.

REDD+ is a mechanism that financially rewards companies and countries that maintain carbon stocks through sustainable forest management or reduce greenhouse gas emissions from deforestation and forest degradation, according to the statement.

In 2019, Vale set the goal of protecting and restoring 500,000ha of native habitat outside its operating sites by 2030. 

Vale has also invested in the expansion of renewable energy in its operations to reduce greenhouse emissions.