Ecopetrol reaches10 million barrels of carbon compensated crude sales
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Ecopetrol reaches10 million barrels of carbon compensated crude sales
Aug 10, 2023
- The carbon compensation covers direct emissions generated along the entire crude lifecycle - including extraction, production, and transportation.
- The Company launched a carbon trading desk as part of its commercial decarbonization strategy with the aim to become a regional carbon hub in LatAm by 2030.
- Carbon compensation is part of the Ecopetrol Group´s decarbonization strategy as a key lever for decarbonizing non abated direct emissions. It is estimated that Natural Climate Solutions (NCS) will contribute between 2 and 4 MtCO2e to the company’s 2030 carbon emissions reduction goals.
Ecopetrol reached the 10-million-barrel milestone in the sales of carbon compensated crude to the Asian, European, and American markets, contributing in this way to the decarbonization of the commercial operations, consistent with the Group's carbon emission reduction objectives.
The volume of carbon-compensated crude traded to date offsets approximately 379 thousand tons of carbon dioxide equivalent (CO2e), equal to reducing emissions from deforestation of close to 9 thousand hectares of mangrove forest on the Colombian coast over a 10-year period.
The compensation covers direct carbon emissions generated throughout the product’s lifecycle, from its production process to its transportation to the Coveñas terminal in the Colombian Caribbean or to the destination port agreed with our customers.
The carbon offsets were derived from high quality-verified Natural Climate Solutions (NCS) projects, including forest restoration, tree planting, and the conservation of the neotropical high mountain biome or paramos, wetlands, and savannahs, among other actions seeking to avoid greenhouse gas emissions and increase carbon sequestration.
This climate-compensated initiative complements the actions conducted by the Ecopetrol Group to cut its operational emissions including energy efficiency and renewable energy projects, and reducing flaring, fugitive emissions, and venting, among others.
The buyers include international companies such as Reliance, Citgo, Repsol, PetroChina, and Phillips 66 which share Ecopetrol's quest to attain more sustainable business operations.
The carbon compensated cargos traded since 2021 to date are of Ecopetrol's two flagship crude blends - Castilla Blend® and Apiay Blend® - produced in the Llanos Orientales basin of Colombia.
“This milestone highlights Ecopetrol's commitment to its TESG agenda and strengthens its position as a leader in the Voluntary Carbon Market (VCM) and the commercialization of Colombian crude oil worldwide. We continue our pledge to sponsor innovative solutions that simultaneously address the needs of our clients, the global climate agenda, and the Company's 2040 strategy," said Pedro Manrique, Commercial and Marketing Vice President of the Ecopetrol Group.
In 2022, Ecopetrol sold 4 million barrels of carbon-compensated crude and in 2023 the goal is to at least double that number.
Ecopetrol is the first National Oil company in Latin America to create a carbon trading desk dedicated exclusively to the Voluntary Carbon Market (VCM).
The corporate objective is to continue investing in Natural Climate Solutions (NCS) projects to mitigate climate change, improve the quality of life of the communities where it operates and protect the biodiversity of strategic ecosystems.
Bogota, August 2023.
