ENGIE and Catona Climate join forces to scale supply of nature-based carbon removals

Rhea-AI Summary

ENGIE pre-orders 5 million nature-based carbon removal credits from Catona Climate, set for issuance between 2030 and 2039.

This collaboration aims to enhance ENGIE's decarbonization strategy, addressing residual emissions and meeting Net Zero targets by 2045.

By securing long-term offtake agreements, ENGIE intends to attract capital for nature-based carbon removals and scale the market.

Both companies emphasize the importance of high-quality, impactful projects benefiting local ecosystems and communities.

Positive

• ENGIE secures 5 million tonnes of nature-based carbon removal credits, aiding its decarbonization efforts.
• The pre-order spans from 2030 to 2039, ensuring long-term commitment to carbon removal.
• Collaboration supports ENGIE's goal to reach Net Zero emissions across all 3 scopes by 2045.
• The initiative helps attract capital for nature-based carbon removal projects.
• Partnership with Catona Climate aligns on quality and impact, offering meaningful benefits to local ecosystems and communities.

Negative

• The financial commitment until 2039 might strain ENGIE’s cash flow if not managed properly.
• If the carbon removal projects do not perform as expected, ENGIE may face reputational and financial risks.
• Long-term agreements can be risky due to potential changes in regulatory or market conditions.

The preorder of 5,000,000 nature-based removal credits from Catona's carbon
portfolio will enable ENGIE to flexibly source removals from multiple high-impact
projects with locked-in pricing through 2039.

LOS ANGELES, June 4, 2024 /PRNewswire/ -- Global leader in the net zero energy transition, ENGIE, has pre-ordered 5 million tonnes of nature-based carbon removals issuing 2030-2039 from climate finance company, Catona. The collaboration exemplifies an industry-leading approach to decarbonization — reducing emissions aligned with public science-based targets and addressing residual emissions through high-impact carbon removal projects on the path to net zero and beyond. This pre-order also demonstrates how long-term offtake commitments can help attract capital for nature-based carbon removals and scale the market.

"Now is the time to accelerate the energy transition, and while we must all focus on reducing carbon emissions, reaching Net Zero will imply removing unavoidable emissions. Promoting the development of high-quality nature-based carbon removal projects will contribute to decarbonizing our client's businesses and help the Engie group reach its Net Zero objective across all 3 scopes by 2045," said Jérôme Malka, Executive Committee member at ENGIE's business entity 'Global Energy Management & Sales'. "Collaborating with Catona to address residual emissions was a natural fit given our alignment on quality and impact, and our shared commitment to supporting projects that not only remove carbon, but also provide meaningful benefits to local ecosystems and communities."

"Key to the success of our carbon financing model is our ability to work with forward-thinking corporations like ENGIE to send unambiguous demand signals to the market," added Tate Mill, CEO of Catona Climate. "Those signals help us de-risk carbon investments and drive more capital through our trusted network of project developers to accelerate the development of nature-based carbon removal solutions so critical to turning the tide on climate change."

About Catona Climate
Catona Climate is a climate finance company that delivers high-quality carbon solutions to businesses everywhere, helping transform climate pledges into measurable action through rigorously vetted high-impact nature-based carbon projects around the world. Guided by an unwavering commitment to the planet, Catona Climate exists to combat the climate crisis by driving capital to nature and enabling a fair and equitable transition to a net-zero future. Catona Climate is a member of the Business Alliance to Scale Climate Solutions, IETA, and other critical industry groups dedicated to accelerating climate action. For more information, visit Catona.com.

About ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 96,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose ("raison d'être"), ENGIE reconcile economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2022: 93.9 billion Euros. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris - Europe 120 / France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).

Media Contacts Catona Climate press@catona.com

ENGIE's Business entity 'Global Energy Management & Sales' Tiffany NGO Tiffany.ngo@engie.com

 

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SOURCE Catona Climate

FAQ

What is the nature of ENGIE's recent collaboration with Catona Climate?

ENGIE has pre-ordered 5 million tonnes of nature-based carbon removal credits from Catona Climate, to be issued between 2030 and 2039.

When are ENGIE's carbon removal credits from Catona Climate expected to be issued?

The carbon removal credits are expected to be issued from 2030 to 2039.

How does ENGIE's pre-order with Catona Climate support its Net Zero goal?

The pre-order assists ENGIE in addressing residual emissions, helping to meet its Net Zero targets by 2045.

What are the benefits of ENGIE's collaboration with Catona Climate?

The collaboration is expected to attract capital for nature-based carbon removal projects and offer benefits to local ecosystems and communities.

What risks does ENGIE face with its long-term carbon removal credit pre-order?

ENGIE faces potential financial strain, reputational risks if projects underperform, and risks related to changes in regulatory or market conditions.