TotalEnergies is contributing $50 million to the Tropical Asia Forest Fund 2 (TAFF2) managed by New Forests.
The fund invests in certified plantations and native forest conservation projects in various countries across Southeast Asia including Indonesia, Malaysia, Laos, Cambodia, Thailand and Vietnam.
The French supermajor’s investment will contribute significantly to the fund’s goal of building a diverse portfolio of six to eight forestry assets for a total investment of $300 million.
The acquisition, development and sustainable management of these forestry assets will also allow TAFF2 to contribute directly to a variety of economic activities including timber, rubber and carbon credits with co-benefits, thus strengthening local value chains, TotalEnergies noted.
“We are pleased to support the first close of TAFF2, allowing us to extend our presence in Asia and diversify our portfolio of nature-based carbon sinks,” TotalEnergies vice president of nature based solutions Adrien Henry said.
“TotalEnergies’ climate ambition is based on a panel of tangible actions, aiming first to prevent and then to reduce our greenhouse gas emissions, and finally to offset residual emissions.”
New Forests chief executive David Brand said Asia is central to the economic and sustainability transformations happening in the 21st century.
“Asia has an important role to play in aligning its growth with climate-positive, nature-positive and sustainable development outcomes,” he said.
“We appreciate the role TotalEnergies has played in helping to scale investment in the blended finance structure to mobilise more capital towards high social and environmental impact outcomes.”
As part of its climate ambition, and in addition to its priority actions to avoid and reduce emissions, TotalEnergies works with many partners around the world to develop and conserve natural carbon sinks, while helping to preserve their biodiversity.
The company plans to spend $100 million per year to build a portfolio of projects capable of generating at least 5 million tonnes per annum of carbon dioxide equivalent in carbon credits by 2030.
These carbon credits will be used after 2030 to offset its Scope 1 and 2 emissions.
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