The British oil giant, BP, has advanced in its energy transition efforts by acquiring a majority stake at one of the biggest carbon offset firms in the United States: Finite Carbon, the company announced this Tuesday, as a part to develop new businesses, meets its climate goals and generate new revenue sources.
BP is not the only oil company looking for a rise in carbon credit prices; Shell and other major oil companies are going towards offsetting carbon solutions to counter the fall of fossil fuels and align better to an environmental agenda.
As we reported previously, oil companies are experiencing a paradigm shift, as investors are seeking to ensure their capitals through the adoption of the Environmental, Social and Governance agenda. Companies aligned with it have a better chance of selling their assets or ensuring financing and capital projects.
As for Finite Carbon, it has 50 carbon projects in three million acres all along the United States. It has registered more than 70 million offsets and generated more than $500 million in revenue for landowners.
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BP advances in energy transition efforts
Although the exact amount of BP’s investment on the company isn’t disclosed; Finite Carbon expects that the participation enables it to deliver further $1 billion to landowners by 2030. As “putting a price on carbon can make it possible for anyone with the ability to protect, plant, or improve forests to generate revenue from their efforts. However, there is currently limited infrastructure to quantify, monitor, and verify these actions at scale,” said Sean Carney, Finite Carbon’s CEO.
According to the company’s statement: “Our partnership will bring the firm into its in-house business accelerator, BP Launchpad. Together with bp’s additional investment, this is expected to bolster Finite Carbon’s expansion, including into new geographical markets.”
Carney added: “Thanks to this unique partnership, Finite Carbon now has the resources of a global energy company behind it to help address this enormous environmental challenge and help small landowners access this market.”
For David Eyton, BP’s executive Vice President for Innovation, “deepening our partnership with Finite Carbon will allow them to accelerate their development and expansion; and us to apply our unique innovation ecosystem to foster innovation and build material energy businesses in support of our net zero ambition.”