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LONDON (Reuters) - Oil companies such as BP and Shell are nurturing nature as a future revenue stream, betting on an expected rise in carbon credit prices as their fossil fuel profits ebb.
A dense stand of small trees clear-cut approximately 10 years earlier is seen from the edge of Hersey Mountain Wilderness in New Hampton, New Hampshire, U.S., December 4, 2020. REUTERS/Elizabeth Frantz
BP last year put $5 million into Finite Carbon, a company that connects forestry owners with companies seeking to offset their climate-warming emissions via-tree planting.
The Californian firm expects to generate $1 billion for landowners over the next 10 years, after a 20-40% cut of the proceeds, its chief executive Sean Carney said.
BP Eyes Carbon Offset Market, Taking Majority Stake in Largest U.S. Forest Developer
BP plc has taken a majority stake in Finite Carbon, the largest developer of U.S. forest carbon offsets, with plans to accelerate business opportunities overseas.
Using its internal business accelerator BP Launchpad, the supermajor said it plans to provide the oomph for Finite to expand into international markets. BP already held a stake in the Wayne, PA-based firm, whose portfolio of about 50 projects stretches across three million acres of forestland, representing every U.S. region from Appalachia to coastal Alaska.
“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,” said Finite President Sean Carney, who founded the company.
BIC Magazine
December 17, 2020
bp has acquired a majority stake in carbon offset developer Finite Carbon, building on its existing interest in the company. Finite Carbon is the largest developer of forest carbon offsets in the US.
bp will bring the firm into its in-house business accelerator, bp Launchpad. Together with bpâs additional investment, this is expected to bolster Finite Carbonâs expansion, including into new geographical markets.
Finite Carbon identifies and develops projects that enable landowners to generate revenue from the protection, restoration, and sustainable management of forests. These actions increase carbon stored in forests and generate carbon offsets that are verified against industry-recognized standards and can be traded on markets.
BP Acquires Majority Stake in Largest US Carbon Offset Developer
Pennsylvania-based Finite Carbon, the largest U.S. carbon offset developer, pays landowners to manage forests, generating carbon offset credits that can be sold to polluters.
Hart Energy Staff
Background image of Sealaska, a forest carbon offset project in Alaska developed by Finite Carbon.
(Source: Shutterstock.com; Finite Carbon) Your browser does not support the audio element.
BP Plc recently acquired a majority stake in the largest U.S. carbon offset developer, Finite Carbon, as the British oil major works to achieve the ambitious climate goals it set earlier this year.
BP (NYSE: BP) has revealed that it has acquired a majority stake in carbon offset developer Finite Carbon.
BP (NYSE: BP) has revealed that it has acquired a majority stake in carbon offset developer Finite Carbon.
The energy major noted that it will bring the company 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, BP revealed.
“Finite Carbon has the potential to build a global platform for managing and financing natural climate solutions,” David Eyton, BP’s executive vice president of innovation and engineering, said in a company statement.