Page 15 - Respond 2022 Magazine

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critical in setting the pace of the transition (i) respecting and promoting the rights capital allocation decisions aligned with
to a lower carbon steel. and the culture of indigenous people and the Paris Agreement goals. We believe
traditional communities, (ii) supporting the that pricing externalities related to GHG
The decarbonization challenge faced by fight against illegal mining and logging, in emissions enable a faster and more efficient
the steel industry points to the essential addition to promoting spatial planning and transition to a low-carbon economy.
role of nature-base solutions in supporting land regularization in consolidated areas,
companies mitigate the climate impact, (iii) promoting the inclusion of forests in That is why the definition of a sound
and aiming to scale up voluntary carbon the carbon markets through REDD and and robust framework for Article 6 is so
markets, for the scope 3 target, we consider other mechanisms, and (iv) encouraging important to us. We will not use any type of
the possibility of using high-integrity offsets environmental protection and restoration credits that can jeopardize the climate fight
(up to 20%). initiatives, highlighting the value of the and, therefore, we need predictable rules to
rainforest, increasing carbon sequestration ensure this and to avoid reputational risks.
As for shipping decarbonization, we have and stocking, and ensuring that we will
the very successful EcoShipping program, continue to offer environmental stewardship At Vale, we are changing how we mine
aligned with the International Maritime services. to serve a changing world. The iron ore,
Organization targets. The program is based nickel and copper we produce are critical
on a strong partnership with shipowners We believe that Vale can be a catalyst to building a cleaner, greener and healthier
and a roadmap of innovative technologies, for “impact carbon” projects that future for all. But supplying these metals to
with projects on rotor sails, air lubrication, generate carbon credits with significant the world is only part of the solution, how
and a Memorandum of Understanding to socioenvironmental benefits. we supply them is even more important.
assess ammonia’s potential as a shipping And that is where the real change is
fuel, in force since the first half of 2021. And finally, Vale supports the Article 6 happening.
negotiations in order to foster a credible
Vale carries out sustainable mining and high-integrity carbon market. We have an ambitious climate agenda, but
practices coupled with forest We have a long-term commitment towards we also have the people, the passion, and
conservation worldwide. net-zero emissions by 2050. It starts with the purpose to deliver it.
Vale has been in the Amazon for more than our priority to continuously reduce our
30 years, helping to protect approximately operational emissions, through innovation
800 thousand hectares of rainforest. The and technology, as previously stated.
area is five times the size of São Paulo’s
capital city and stores approximately 490 Nevertheless, science recognizes that, as
million tons of carbon equivalent. Over a hard-to-abate sector, we may also rely
60% of our iron ore is produced within to a limited extent on carbon offsets and
the Amazon region, proving that mining removals. We will leverage our expertise and
activities and sustainable development know-how to address sound nature-based
are compatible. We generate income and solutions. At the same time, we will count on
thousands of jobs and engage an entire high-quality and credible carbon markets,
chain of local suppliers. aligned with international best practices. 1 2017 baseline
2 IEA – “Net Zero by 2050: a roadmap for the
global energy system”, 2021
As stated in our September 2020’s At Vale, an internal carbon price of US$
3 IEA. “Iron and Steel Technology Roadmap:
Amazon Manifesto, we are committed to 50/tCO2e is already in effect to guide our Towards more sustainable steelmaking”, 2020
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