Investments and initiatives

Ensuring proper quantification of carbon-related risks and opportunities is one of our top priorities, and transparency is critical to enabling our stakeholders to understand the motivations behind our decisions. SP 2023-2027 reinforced our commitment to advance the decarbonization of our operations while seeking to capture new business opportunities and deepen studies to diversify our portfolio.

Our low-carbon investment forecast has increased in this strategic plan, providing US$ 4.4 billion for the decarbonization of operations, production and supply of bioproducts (renewable diesel and sustainable aviation kerosene), and low-carbon research and development.

It’s a big challenge for Petrobras to achieve its ambition of operational emissions neutrality and meet society’s ambition. To overcome this challenge, innovation remains a crucial pillar to accelerate the development of technological solutions and create opportunities for the future.

GHG mitigation strategy and integrated management

We are constantly identifying GHG mitigation opportunities to support our sustainability commitments and the ambition of neutrality of operational emissions. Since 2021, we have used the Marginal Abatement Cost Curve (MACC) methodology to assess and compare different mitigation opportunities across all segments we operate. The MACC allows us to classify options based on the relationship between the cost of implementation and the potential for greenhouse gas abatement. Our integrated MACC includes over 500 mitigation opportunities, classified into five categories: efficiency, energy, losses, process, and CO2 removal.

We structured the Carbon Neutral Program to strengthen our current low-carbon position with an integrated corporate vision of all our initiatives. The Program has a fund dedicated to decarbonization projects, the Decarbonization Fund, with a budget of US$ 600 million for the five-year period (2023-2027). In 2022, through specific governance, the first portfolio of projects under the Decarbonization Fund was approved, covering initiatives in the E&P, Refining, G&P and Logistics operations.

Seeking operational excellence to reduce greenhouse gas emissions, we continually improve and update project development requirements. Specific programs focus on increasing operational efficiencies, such as EF100, FPSOzero, RefTOP, Avança Log, projects in G&P and for maritime transport and offshore logistical support, aiming to contribute to reducing GHG emissions in different segments.

Low-Carbon Products and Businesses

We are attentive to opportunities that contribute to long-term sustainability, diversifying our portfolio of products and businesses. We have developed a new generation of products in line with our focus on acting as a protagonist in the supply of low-carbon products, focusing on the BioRefining Program.

Throughout 2022, we analyzed diversification opportunities that also reduce the carbon footprints of our products and businesses. We developed studies and metrics that allow comparing different types of projects and opportunities in the energy and non-energy markets. We plan to deepen these studies in new initiatives analysis. In 2022, three segments were selected for potential portfolio diversification, for which we will advance in internal studies: Offshore Wind Energy, Hydrogen and Carbon Capture.

Emissions compensation strategy and support for the regulated carbon market

We believe in carbon markets as an important instrument for fighting climate change. We are engaged in conversations regarding implementing a regulated carbon market in Brazil and supporting the country’s carbon market development.

We have included offsets in our strategy as a possibility for achieving even more ambitious results than those possible with the intrinsic decarbonization of our operations while at the same time contributing to the preservation of Brazilian ecosystems. Potential compensations will be complementary, and not substitutive, of intrinsic mitigation efforts. We seek to invest in high-quality carbon credits to bring climate, socioeconomic and environmental benefits. We are committed to transparency and traceability in disclosing the origin and use of credits.