Paris, France – TotalEnergies announces that it will contribute an amount of $50 million to the “Tropical Asia Forest Fund 2” (TAFF2) managed by New Forests, which aims at investing in certified plantations and native forest conservation projects in various countries across South-East Asia, including Indonesia, Malaysia, Laos, Cambodia, Thailand, and Vietnam.
TotalEnergies’ investment will contribute significantly to the fund’s goal of building a diverse portfolio of six to eight forestry assets for a total investment of $300 million.
The acquisition, development and sustainable management of these forestry assets will also allow TAFF2 to contribute directly to a variety of economic activities, including lumber, rubber, and carbon credits with co-benefits, thus strengthening local value chains.
The fund will focus on high Environmental, Social, and Governance (ESG) impact activities, in line with the United Nations Sustainable Development Goals (SDGs). All investments will be managed in accordance with the performance standards of the International Finance Corporation (IFC) and the standards developed by international forest certification labels such as the Forest Stewardship Council (FSC) and the Program for the Endorsement of Forest Certification (PEFC).
These forestry assets will: create local employment; create economic development opportunities for local communities, through programs aiming at artisanal producers; reinforce biodiversity corridors; protect primary forests.
“We are pleased to support the first close of TAFF2, allowing us to extend our presence in Asia and diversify our portfolio of nature-based carbon sinks” said Adrien Henry, Vice President Nature Based Solutions at TotalEnergies. “TotalEnergies’ climate ambition is based on a panel of tangible actions, aiming first to prevent and then to reduce our greenhouse gas emissions, and finally to offset residual emissions.”
“Asia is central to the economic and sustainability transformations happening in the 21st century. Asia has an important role to play in aligning its growth with climate positive, nature positive, and sustainable development outcomes. We appreciate the role TotalEnergies has played in helping to scale investment in the blended finance structure to mobilize more capital towards high social and environmental impact outcomes,” said David Brand, Chief Executive Officer, New Forests.
As part of its climate ambition, and in addition to its priority actions to avoid and reduce emissions, TotalEnergies works with many local partners around the world to develop and conserve natural carbon sinks, while helping to preserve their biodiversity. These operations follow a long-term approach of sustainable and integrated economic development of areas with local communities. TotalEnergies plans to spend $100 million per year to build a portfolio of projects capable of generating at least 5 million metric tons of CO2e of carbon credits per year by 2030. These carbon credits will be used after 2030 to offset the Company’s scope 1 & 2 emissions.