Vale has presented its target to reduce net scope 3 emissions from its client and supply chain by 15% by 2035. The reduction target references 2018 as base year, which registered 586 million tons of CO2 equivalent from Vale's value chain. The company expects to reach 496 MTCO2e in 2035, down 90 MTCO2e compared to 2018 levels, which were equal to Chile's emissions from energy consumption in the same year, according to the International Energy Agency. The target will be reviewed in 2025 and every five years thereafter. Currently, scope 3 emissions account for 98% of Vale's carbon footprint.
The target already considers the production capacity increase to 400 million tonnes of iron ore, to be reached by the end of 2022. Just like its scope 1 and 2 targets, the new target is also aligned with the Paris Agreement's ambition to limit global warming to well below 2 degree Celcius by the end of the century. Vale's scope 3 target is supported by its portfolio of high-quality products and innovative technologies that offer solutions for reducing emissions in its value chain.
The company will further engage with its value chain through partnerships for the development of low carbon technologies, especially with customers in the steel sector. Nature-based solutions also play an important role in this process, given Vale's forests initiatives and the potential access to carbon credit markets. Today, the company helps protect more than one million hectares worldwide. By 2030, it plans to cover another 500,000 hectares through recovery and protection projects. Vale recently joined the Task Force on Scaling Voluntary Carbon Markets, an initiative that brings together more than 40 leaders and companies worldwide with the aim of building capacity of voluntary carbon markets as a structured and feasible alternative against climate change.