Rio Oil & Gas received the certificate of neutralization for carbon emission generated at the event on Monday (9/26). This is the first time that the fair is zero carbon. The Instituto Brasileiro de Petróleo e Gás (IBP) corporate executive director, Fernanda Delgado, received the certificate of neutralization from BlockC platform CEO, Carlos Mathias Martins, responsible for intermediating the credit acquisition equivalent to 170 tons of CO2, at the Arena ESG opening. That is the estimated quantity of emissions, mainly from the event’s electricity generators.

“It shows the oil and gas industry commitment. It shows that we really embrace the energy transition, the decarbonization, that the industry has this commitment, and that we will comply with it”, said Fernanda.

The credits acquired were generated by the Envira Amazônia project, a forest area with more than 39 thousand hectares in Acre that develops agroforestry activities in partnership with local communities. The acquisition operation was performed at the Aircabon Exchange (ACX).

“I believe that the oil and gas sector has a fundamental role toward the greenhouse gases emission. A part of the solution is here. Nothing will be done without going through the sector”, said Carlos Mathias.

RENOVABIO

Only 13% of the emissions in the country is originated from liquid fuels. Despite the low general participation in CO2 generation, the fuel sector knows that they can contribute more to the matrix decarbonization process, highlighted Valeria Lima, IBP Downstream Executive Director, during the panel “Renovabio – the lessons learned from the first carbon market in Brazil”, who discussed the program, at Arena ESG.

Lorena Mendes, responsible for coordinating Renovabio, a Ministry of Mines and Energy’s program designed to increase the biofuel offer, highlighted that “decarbonizing is a question of survival, competitiveness, and also opportunities to Brazil in the global scenario.” Among the actions is the construction of a carbon market, with trading of CBIOs, decarbonization credits, which had a turnover of R$ 3 billion in negotiations at B3 stock exchange this year.

LOW CARBON AT LONG TERM

Another theme discussed at Arena ESG was what needs to be done for the oil and gas sector to achieve the carbon neutrality by 2050. The sector’s projects evidenced the deforestation as one of the greatest threats for the transition to the low carbon economy in Brazil. Agnes da Costa, Ministry of Mines and Energy Special Advisory on Regulatory Affairs head, reinforced the role of the studies to guide the projects on this theme. “Studies have shown that, if we do not control deforestation, we will face a great difficulty to fulfill the carbon neutrality by 2050”, stated Agnes, during the panel “The projects on the oil and gas sector for the Brazilian path to climatic neutrality in 2050”.

A survey from Energy Planning Program, by Coppe/UFRJ, presented by the assistant professor Pedro Rochedo, based on mathematical modeling tool, concluded that the deforestation is an essential measure to Brazil, if it is desired to keep their relevance role in a low carbon economy in the future.

“It is fundamental to have a long-term low carbon development strategy, as the challenge toward neutrality by 2050 is enormous. One of the best scenarios for our study indicates that the emissions permits auctions, returning to the economy and keeping the tax load neutral, the sectors that will have more benefits will be those that generate more job positions. We will use the carbon revenues favoring the economic transition toward a low carbon transition”, stated William Wills, EOS Estratégia e Sustentabilidade CEO.

Another important step is to define the sizing of emissions to each segment of the sector, an initiative that has already been started by a partnership between IBP and the WayCarbon consulting company. “In our first scope, made with 40 BP associates, we have identified the four segments with the highest emissions in the O&G sector: downstream, with 44%; upstream, with 35%; thermal, with 16%; and midstream, with 5%. This mapping will serve as an assessment for the cost-effective measures to decarbonization”, Julia Rymer, WayCarbon Mitigation manager and one of the speakers concluded.