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Business News of Monday, 21 February 2022

Source: GNA

Tullow Oil, Forestry Commission sign MoU to develop carbon offset projects

Deputy Managing Director of Tullow Ghana, Cynthia Lumor Deputy Managing Director of Tullow Ghana, Cynthia Lumor

Tullow Oil and Forestry Commission have signed a Memorandum of Understanding (MOU) to identify and develop carbon offset projects that will support both the realisation of Tullow’s 2030 net zero plans and the Government of Ghana’s nationally determined contributions under the Paris agreement.

Under the MOU, the two organisations will collaborate to develop projects which will enhance the conservation of existing forests and increase forest stocks in line with Ghana’s REDD strategy.

The active collaboration will not only help build a low carbon future but will create alternative economic opportunities for communities within the identified project zones.

Deputy Managing Director of Tullow Ghana, Cynthia Lumor and the Chief Executive of the Forestry Commission, Ghana, John M. Allotey signed the agreement on behalf of their respective institutions.

Commenting on the MoU, Cynthia Lumor said, “The partnership with the Forestry Commission of Ghana to co-develop carbon offset projects is beneficial to both parties and is evidence of demonstrable resolve between private sector and government, united to address climate change whilst supporting sustainable delivery of energy for development."

"Benefits to local communities will be at the forefront of projects to be developed to ensure that we continue to create alternative livelihoods aligned with our shared prosperity agenda”.

She said the signing of the MoU marked the formal kick-off of the company’s drive to control emissions of a minimum of 600,000 tonnes of carbon dioxide per annum and to increase that to 1.2 million tonnes per year.

She said the company was committing $37 million as far as the decarbonizing to expand the company’s gas capacity in the Jubilee and Ten fields to eliminate flaring by the year 2025 and as we work on the

Mrs Lumor said the Forestry Commission would offer the necessary guidance as to where the projects would be located, what to do and how to limit the impact on stakeholders.

In addition to the company’s commitment to decarbonise operational assets and eliminate flaring by 2025, the identified carbon offset projects will form part of Tullow’s strategy to attain Net Zero on its scope 1 and 2 emissions by 2030.

The carbon offsets will compensate for the residual, hard to abate emissions.

The Chief Executive of the Forestry Commission, Ghana, Mr. John M. Allotey said Ghana had demonstrated significant leadership on REDD to tackle deforestation and forest degradation.

“As a signatory to the Glasgow Leaders Declaration on Forests and Land-Use, the Country is even more determined to harness the power of collective action, in partnership with private sector to make good our promise for the survival of forests ecosystems, people and their livelihoods.

The signing of the MoU is, therefore, timely and the Commission looks forward to the implementation of measurable actions for verifiable emission reductions”.

Mr Allotey said the signing would pave the way for the two institutions to take the next steps necessary to bring the projects to fruition.