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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