Brazil state-run oil firm Petrobras (PETR4.SA) will use the 175,000 carbon credits it purchased last month to render carbon neutral around a year's worth supply of its premium gasoline, Gasolina Podium, a company executive said on Wednesday.
Petrobras made its first ever carbon credit purchase in September, as part of broader push to become more sustainable.
It bought 175,000 carbon credits from Projeto Envira Amazonia in the Amazon rainforest, it said at the time, adding it plans to spend at least $120 million in carbon credits by 2027. The price Petrobras paid was not made public.
At a press conference on Wednesday, Sandro Barreto, Petrobras' executive manager of sales to the internal market, said the credits would be used to offset the carbon produced over the course of a year by Gasolina Podium.
The premium fuel represents about 1% of sales to customers at gas stations supplied by Vibra (VBBR3.SA), Petrobras' main distributor, which has exclusive rights to sell Podium.
Carbon credits are tradable permits that allow the owner to emit certain amounts of greenhouse gases. Each credit permits the emission of one metric ton of carbon dioxide or the equivalent in other greenhouse gases.
The certification of the credits follows Verra's Verified Carbon Standard (VCS), the largest certifier of the voluntary carbon market in the world.
