McLaren Racing signed an agreement with the startup Brazilian company Mombak to buy carbon removal credits from reforestation projects in the Amazon jungleas part of its bid to achieve net-zero emissions by 2040, the companies said Thursday.
McLaren competes in Formula One and the IndyCar Series, and generates emissions from – in addition to motorsport itself – from other activities such as air travel. F1 has 24 races scheduled in 22 different countries for next year.
Under its agreement, Mombak said it will supply McLaren from 2023 to 2025 at an average price of more than $50 per metric ton, a premium above the traditional carbon credit market.
Carbon credits are tradable permits that allow their owner to emit certain amounts of greenhouse gases, with each credit allowing the emission of one ton of carbon dioxide.
“Carbon credits over US$50 are the big news”Mombak co-founder Peter Fernández said in an interview. “That’s a new level. In Brazil some people still think that carbon credits are worth US$5, US$10, US$15; “That is no longer true.”
McLaren aims to reduce its emissions by 90% by 2040. For the 10% remaining, would implement initiatives such as carbon offsetting.
“A big part of that is making sure we reduce emissions across our operations and supply chain.”said the team’s chief sustainability officer, Kim Wilson, of the goal of net zero emissions by 2040.
“But we know that this is not enough. “We also have to do something about the carbon in the Earth’s atmosphere.”
Mombak is backed by investors including Bain Capital and AXA, and recently raised a $100 million fund to build carbon removal projects in the Amazon, with money from Canada’s CPPIB and the Rockefeller Foundation.
Critics of carbon offset markets, including Greenpeace, say they allow emitters to continue releasing greenhouse gases.
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.