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Engie Buys 5 Million Tons of Nature-Based Carbon Credits for Net Zero

Engie, the world’s largest independent power producer, has made a significant commitment to sustainability by pre-ordering 5 million tons of nature-based carbon removals from Catona Climate, a climate finance company.

This move is part of Engie’s strategy to meet its Net Zero target by 2045. It also represents a major investment in nature-based solutions, which are becoming crucial for climate change mitigation.

A Major Deal for High-Quality Climate Solutions

The recent reports from the Intergovernmental Panel on Climate Change (IPCC) have highlighted the necessity of scaling up carbon removal methods to achieve climate goals. The latest IPCC report emphasizes nature-based solutions, which can remove at least 3 gigatons of CO2 annually by 2030. 

Traditionally, efforts focused on technological solutions for carbon capture. However, nature-based solutions are also gaining traction due to their additional environmental benefits, as evidenced in recent Xpansiv report. 

Engie’s partnership with Catona Climate reflects a broader industry trend toward integrating ecosystem restoration projects into corporate carbon strategies. This shift highlights the growing recognition of carbon removal alongside direct emission reductions in achieving net zero emissions.

Engie’s pre-order aligns with these findings and marks a significant step up from its previous smaller-scale carbon offset projects. However, scaling these projects faces several challenges, including complexities related to impacts on local communities and balancing carbon sequestration with other environmental benefits.

This is where Catona Climate’s solutions come in. 

Based in California, Catona Climate funds high-impact, nature-based projects through carbon removal purchases. These projects are aligned with science-based targets and focus on regenerative land management, reforestation, and combating deforestation. 

The climate finance company sources, invests, and monitors these projects, offering businesses a portfolio of high-quality climate solutions. By creating clear demand signals, Catona aims to de-risk carbon investments and accelerate the development of high-quality climate solutions. 

A Growing Trend of Nature-Based Carbon Removal

The agreement enables Engie to secure carbon removal credits from multiple projects at fixed prices, offering financial stability and predictability. Under the partnership, the carbon removal credits will be issued between 2030 and 2039, with Engie having the flexibility to source from multiple projects at locked-in pricing. 

Jérôme Malka, a member of Engie’s Executive Committee, emphasized the shared commitment to quality and impact between Engie and Catona. He further highlighted the benefits of this deal, saying that:

“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.”

Tate Mill, CEO of Catona Climate, stressed the importance of the partnership with Engie to drive capital and expand nature-based projects. 

“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.”

Engie’s collaboration with Catona is a key component of its strategy to decarbonize clients’ operations and achieve net zero. Here are the other major operational levers of action the company is undertaking. 

Engie operational levers for action

What’s Inside Engie’s Ambitious Net Zero Goal?

Engie is committed to a bold decarbonization strategy, aiming to achieve net zero across its three scopes. In 2023, the Group’s carbon emissions totaled 158 million tonnes of CO2 equivalent, a significant reduction of 39% from 2017’s 260 million tonnes.

Engie carbon footprint emissions 2023

The French power company’s roadmap sets a goal to cut all emissions by at least 90% between 2017 and 2045, with the remaining 10% to be neutralized. The company’s 2030 decarbonization trajectory, certified as “well below 2°C” by the Science-Based Targets initiative (SBTi), involves four main goals to reduce emissions. These include:

  • 59% reduction in energy production emissions (scopes 1 and 3), 
  • 34% decrease in emissions from gas sales (scope 3), 
  • 66% reduction in carbon intensity from energy production (scope 1) and consumption (scope 2), and 
  • 56% cut in the carbon intensity of energy sales (scopes 1 and 3).

Engie net zero strategy

To achieve these targets, the power company is adopting several key strategies:

  • Phase Out Coal: The Group plans to completely eliminate coal by 2025 in Europe and by 2027 globally.
  • Expand Renewable Energy: ENGIE aims for renewables (solar, onshore, and offshore wind) to comprise 58% of its electricity generation mix by 2030, boosting production capacity by 50 GW by 2025, reaching 80 GW by 2030. Additionally, 10 GW of battery storage capacity will be installed, mainly in Europe and the US, to enhance the flexibility of the energy mix.
  • Increase Green Gases: The biomethane production capacity is targeted to reach 10 TWh/year in Europe by 2030, with an injection capacity of 50 TWh/year across ENGIE’s networks. Green hydrogen is also a crucial component, with a goal of producing 4 GW by electrolysis by 2030, supported by a 700km transport network and 1 TWh storage capacity.

Notably, the Group aims to manage 30 TWh/year of decarbonized hydrogen and establish over 100 hydrogen refueling stations.

Finally, Engie commits to a program to reduce carbon emissions, targeting 45 million tons of CO2 eq. avoided each year. Part of this goal is investing in 5 million tons of carbon credits, which what the company just did.

Engie’s pre-order from Catona represents a step towards achieving its net zero goal by 2045. This collaboration aims not only to reduce carbon emissions but also to support local ecosystems and communities, ensuring the long-term viability of nature-based carbon removal solutions.

The post Engie Buys 5 Million Tons of Nature-Based Carbon Credits for Net Zero appeared first on Carbon Credits.

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The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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