Cenovus announces a strategic investment in Green Star Royalties
December, 2023 – At Cenovus Energy, we share the world's concerns about climate change and we’re working hard to reach our long-term ambition of net zero emissions from our operations by 2050.
As part of these efforts, we’ve invested about C$21 million in Green Star Royalties, a joint venture that invests in emissions reduction projects (or credits). The agreement will give Cenovus approximately 26% ownership in the company, as well as two seats on each of the Board of Directors and Technical Committee, which will help us advance the strategic goals of the organization.
“This investment has the potential to open up new avenues for business growth and development in an emerging sector,” says Tyler Tarnoczi, Senior Climate & Sustainability Specialist. “It’s a way for us to diversify our corporate revenue sources, use carbon credits to meet regulatory obligations in certain provinces and to help bridge our long-term net zero ambition.”
It should be noted that using carbon credits towards our 2035/2050 targets is not the primary motivation for this investment, and the announcement doesn’t change our commitment to decarbonizing our base business.
“We’ve set ambitious emissions reduction targets for ourselves, and it will take a variety of solutions to meet them,” says Susan Grey, Director, Sustainability. “We’re progressing several GHG emissions reduction opportunities within our five-year business plan. We’re also advancing and scaling existing technologies like carbon capture and storage, and exploring emerging technologies like direct air capture, hydrogen and small modular nuclear reactors. This announcement is about new business opportunities beyond those decarbonization initiatives.”
Read the Star Royalties* news release
*Note: Star royalties is the parent company of Green Star Royalties.
Using carbon offsets in our value chain
Carbon offsets are already being used in our value chain. In 2022, we invested in the BigCoast Forest Climate Initiative – a carbon crediting opportunity supporting improved forest management practices. We’re using the carbon credits we received through the investment to offset several years’ worth of our aviation-related corporate travel and employee commuting emissions. These represent a portion of our scope 3 emissions footprint, which are indirect emissions in our value chain or from the use of our products.
Carbon offsets are generated when a company voluntarily reduces their greenhouse gas emissions either by avoiding an activity that generates emissions (e.g. harvesting trees) or by doing something that removes carbon dioxide from the atmosphere (e.g. planting trees). The offset credits are then put on the voluntary carbon market which other companies can purchase and retire to neutralize their own emissions.
Read our environmental, social & governance (ESG) report to learn more about our ESG targets and performance.
We’re collaborating to achieve net zero greenhouse gas (GHG) emissions from our oil sands operations by 2050. Read more.