Trairi Wind Complex issues its first carbon credits
Situated in the state of Ceará and operated by ENGIE, Trairi successfully concluded its first carbon credits issue involving four of its wind farms installed in the municipality – an achievement representing one more milestone in the strategy for accelerating ENGIE’s energy transition.
The Trairi Wind Complex comprises 86 wind turbines with total installed energy of 212.6 MW – equivalent to the volume needed to supply energy to a population of 174 thousand. Over a period of seven years (2013 to 2020), 1,238,487 carbon credits have been issued each one corresponding to a ton of carbon dioxide gas (CO2) not emitted into the environment.
To give an idea of volume, the credits are enough to compensate for one year of CO2 emissions from 23 thousand vehicles traveling 30 kilometers every day with an autonomy of 10 kilometers per liter. Another way of estimating the magnitude of the amounts involved is reflected in the energy consumption of a state in the federation. For example, Trairi’s carbon credits would be enough to compensate the emissions equivalent to the annual consumption of energy in the state of Ceará over a period of 5 years.
In all, four wind farms in the Trairi Wind Complex were responsible for generating the carbon credits. The first was Guajiru, with 378,020 tons of carbon dioxide equivalent, represented by the tCO2e acronym. The second was Fleixeiras with 321,131 tCO2e, followed by Mundaú with 273,653 tCO2e, and finally Trairi with 310,683 tCO2e.
“Trairi’s carbon credit issues not only contribute to mitigating climate change but also drive the sustainability agenda and create sustainable business opportunities, supporting the decarbonization journey of innumerous clients”, comments Gabriel Mann, ENGIE Brasil Energia’s Chief Energy Commercialization Officer.
The carbon credit issuance process was approved by the United Nations Framework on Climate Change (UNFCCC) with all wind farm verification and monitoring reports prepared by Consultoria Ecofinance, and audited by the company, ESPL, which certified the entire registration process within the scope of the Clean Development Mechanism (CDM).
For registration under the CDM, the carbon credit project must be in strict accordance with all the rules and procedures of this mechanism as well as the Kyoto Protocol and the UNFCCC. The number of carbon credits to be generated by each project adheres to specific methodologies for calculation and monitoring approved internationally by the United Nations Organization (UNO).
How will commercialization be conducted
The carbon credit can only be commercialized after generation, that is after decarbonization has been verified. ENGIE’s sales strategy has been to prioritize the direct attendance of the customer in support of the latter’s decarbonization journey through delivery of the voluntary cancellation certificates issued by the UNO (UNFCCC).
“The issuance of Trairi carbon credits will allow emissions reduction certificates with great added value to be offered to clients since the Trairi Wind Complex has also been a medium for providing innumerous socio-environmental benefits for the region from the outset of the Complex’s implementation phase and including jobs and income creation, upgrading of skills together with training of the local population, research and education in the area of biodiversity, treatment of waste, among others”, declares Luciana Nabarrete, Chief People, Processes and Sustainability Officer of ENGIE Brasil Energia.
In addition to contributing to the supply of renewable energy and reducing CO2 emissions into the atmosphere, the Trairi Wind Complex is also an important vector for the promotion of the Sustainable Development Goals (SDGs), supporting territorial development activities through socio-environmental initiatives, above all in the areas of healthcare and education for the communities. Since the Complex’s implementation, ENGIE has invested more than R$ 10 million in socio-environmental projects, benefiting 50 thousand people directly and indirectly. Particularly outstanding is the Trairi Cultural Center, under construction in the region. The Center is designed to provide the municipality with a physical space where cultural and artistic manifestations may be expressed, valorizing the cultural heritage of the area, and including the first theater auditorium in the municipality. In this way, Trairi will have at its disposal a venue for enriching the cultural baggage of its citizens while, conversely, being a vehicle for disseminating local culture to those visiting the city.
What are carbon credits?
Carbon credits are generated from projects which reduce or remove greenhouse gas emissions such as carbon dioxide (CO2), from the atmosphere. In the case of renewable energy sources, such as solar or wind, carbon credits arise from the reduction in CO2 emissions which would occur if energy was to be generated from conventional energy resources such as through the burning of fossil fuels.
Through the intermediation of this system, companies that succeed in reducing their emissions below a given limit enjoy the right to issue carbon credits equivalent to the quantity of avoided pollutants. Such credits can be traded in the international market, thereby allowing other organizations to compensate their own emissions by acquiring these credits.
ABOUT ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 97,000 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 reconciles 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: 82.6 billion Euros.
In Brazil, ENGIE, leader in 100% renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. The Company
has in the country an installed capacity of 12,5 GW, originated from renewable sources and with low GHG emissions, such as hydro, solar and biomass power plants, and windfarms.
With the acquisition of Transportadora Associada de Gás – TAG, ENGIE now also owns the largest natural gas transportation network in the country, at 4,500 km and transecting 10 states and 191 cities.
The Group has a complete portfolio of integrated solutions focused on reducing costs and improving the infrastructure for companies and cities, such as energy efficiency, public lighting, energy monitoring and management.
With 2,800 employees, ENGIE’s turnover in Brazil in 2023 was of R$ 11.7 billion. ENGIE trades on the B3 through its energy generation and trading company, ENGIE Brasil Energia, under the ticker EGIE3. In addition to being a B3 Novo Mercado component, the Company is one of the very few companies that have been listed in the Business Sustainability Index since its creation in 2005. In 2021, ENGIE Brasil Energia was included in the Carbon-Efficient Index (ICO2), made up of IBrX 100 companies that are most transparent in terms of GHG emissions reporting and how they are preparing for a low-carbon economy.
The company also received in May 2024 the certification Great Place to Work, a recognition which validates the continuous commitment of the company to create a positive and inclusive work environment for all.
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).