Mercedes-AMG PETRONAS Expands Carbon Removal Initiatives

Mercedes-AMG PETRONAS commits to large-scale carbon removal across six technologies

Mercedes-AMG PETRONAS Formula One Team has committed to a major expansion of its carbon dioxide removal portfolio. The team announced seven new projects spanning six different removal technologies on March 3-4, 2026, at Economist Impact’s Sustainability Week. This investment represents one of the most diverse carbon removal portfolios in global sport.

The commitment supports the team’s Race Team Control Net Zero goal by 2030. It addresses residual emissions that remain after the team has eliminated direct operational emissions. The portfolio includes both nature-based and engineered solutions, verified by CUR8, a carbon removal marketplace that ensures transparency and methodological rigor.

The announcement builds on existing reduction achievements. Mercedes-AMG PETRONAS has already cut Race Team Control emissions by 35% in 2024 compared to the 2022 baseline. The team aims to eliminate all Scope 1 and 2 emissions by 2026.

Portfolio spans direct air capture, biochar, and ocean-based removal

The seven new projects deploy six distinct technologies. These include Direct Air Capture, Biomass Storage, Bioenergy with Carbon Capture and Storage, Biochar, Ocean Alkalinity Enhancement, and Enhanced Rock Weathering. Together, the portfolio represents approximately 18,900 tonnes of CO₂ equivalent.

Geographic distribution aligns with the Formula 1 race calendar. Projects are located in Brazil, Canada, the United States, the United Kingdom, Denmark, and India. This approach creates local impact in communities where the team races.

The team has partnered with Frontier for durable technological solutions. Frontier specializes in direct air capture and enhanced weathering, offering storage that lasts over 1,000 years. Credits from these projects are expected from 2027 onwards. The long-term aim is to achieve costs below $100 per tonne.

Chestnut Carbon leads the nature-based component. The US-based organization will reforest 200 hectares with more than 260,000 native trees in the southeastern United States. This project is expected to sequester 1,000 to 1,500 tonnes of CO₂ equivalent annually from 2027. It extends Mercedes’ tree planting efforts, which have reached 17 million trees since 2022.

Additional partners include Carboneers, InPlanet, and Blaston Farm. These organizations focus on regenerative agriculture and reforestation. Previous investments have included AI-monitored soil carbon projects.

Emission cuts remain the primary focus for race operations

Carbon removal complements an aggressive reduction strategy. The team has achieved measurable cuts across multiple emission sources. In 2024, sustainable aviation fuel certificates covered 68% of aviation emissions, saving 9,860 tonnes of CO₂ equivalent. Race trucks now run on HVO100 biofuel for 98% of operations, saving an additional 449 tonnes.

The team is phasing out gas heating at its facilities. Meanwhile, the vehicle fleet is transitioning to electric models. These changes target Scope 1 and 2 emissions directly. By 2026, Mercedes-AMG PETRONAS aims to eliminate these emissions entirely.

Remaining emissions will be neutralized through high-quality carbon dioxide removal. The team follows the Oxford Offsetting Principles, which prioritize reduction before removal. By 2030, the target is a 75% reduction in Race Team Control emissions compared to 2022 levels. The final 25% will be addressed through verified removal projects.

This approach addresses hard-to-abate Scope 3 emissions. Supply chain goods represent a significant portion of these residual emissions. Consequently, the carbon removal portfolio focuses on durable, verifiable solutions rather than short-term offsets.

What this means for motorsport sustainability and carbon markets

Formula 1 faces unique sustainability challenges. The sport involves global travel, freight logistics, and high-performance engineering. Emissions reduction in this context requires both technological innovation and strategic investment. Mercedes-AMG PETRONAS demonstrates how carbon removal can complement operational changes without replacing them.

Alice Ashpitel, Head of Sustainability at Mercedes-AMG PETRONAS, explained the rationale. She stated that emissions reduction remains the priority. However, high-quality carbon removals are essential for tackling residual emissions. By investing early across diverse technologies and regions, the team contributes to scaling durable climate solutions. The approach also supports communities and environments in racing regions.

The investment carries broader market implications. Early adoption of emerging removal technologies helps drive down costs. Direct air capture and enhanced weathering currently operate at higher price points. However, advance market commitments like this create demand that enables scaling. Over time, increased deployment should reduce per-tonne costs significantly.

CUR8’s verification role addresses credibility concerns. Carbon offset markets have faced scrutiny over quality and permanence. Third-party verification ensures that removal claims are measurable and verifiable. First credits from the portfolio are expected in 2027, allowing for transparent tracking of delivery.

The portfolio diversification reduces risk. Relying on a single removal method creates vulnerability to technological or regulatory changes. By spreading investment across six technologies, Mercedes-AMG PETRONAS builds resilience. Nature-based solutions offer near-term impact. Meanwhile, engineered solutions provide long-term durability.

This strategy aligns with Formula 1’s industry-wide commitment to Net Zero by 2030. Other teams and suppliers may follow this model. Consequently, the announcement could accelerate carbon dioxide removal adoption across motorsport. The sector’s visibility also brings attention to removal technologies that could scale to other industries.

Essential details about the carbon removal commitment

• Mercedes-AMG PETRONAS has committed to approximately 18,900 tonnes of CO₂ equivalent removal across seven new projects using six different technologies.
• The team has already achieved a 35% reduction in Race Team Control emissions by 2024 compared to 2022, with a target of 75% reduction by 2030.
• Projects are located in Brazil, Canada, the United States, the United Kingdom, Denmark, and India, aligning with the Formula 1 race calendar.
• Sustainable aviation fuel certificates now cover 68% of aviation emissions, saving 9,860 tonnes of CO₂ equivalent in 2024.
• The team aims to eliminate all Scope 1 and 2 emissions by 2026, with any residual emissions neutralized through verified carbon dioxide removal.
• CUR8 provides verification and transparency for all projects, with first credits expected from 2027 onwards.
• Team partners Signify, UBS, and Nasdaq support the initiative, alongside Meta AI and Microsoft.

How UK businesses can apply these principles

The Mercedes-AMG PETRONAS approach offers lessons for UK small and medium-sized enterprises. Reduction must come first. Carbon removal should address only those emissions that cannot be eliminated through operational changes. This hierarchy prevents removal investments from becoming a substitute for genuine efficiency improvements.

Many UK businesses face similar challenges with hard-to-abate emissions. Supply chain emissions often represent the largest portion of a company’s carbon footprint. Manufacturing, logistics, and service businesses all encounter Scope 3 emissions that resist simple solutions. Consequently, a combination of reduction and removal becomes necessary.

Portfolio diversification matters for smaller organizations too. Relying exclusively on one type of carbon offset creates risk. Nature-based solutions like woodland creation offer co-benefits for biodiversity. However, they carry different permanence characteristics than engineered removal. Businesses should consider mixing approaches based on their specific needs and timescales.

Verification and transparency protect reputation. The carbon offset market includes providers with varying quality standards. Working with verified schemes ensures that removal claims withstand scrutiny. For businesses bidding on public sector contracts, this matters significantly. PPN 06/21 compliance for carbon reporting requires credible emissions data and reduction plans.

Geographic alignment can strengthen local relationships. Mercedes-AMG PETRONAS chose project locations that match their race calendar. Similarly, UK businesses might prioritize removal projects in their operational regions. This creates visible community benefits and strengthens stakeholder engagement.

The Oxford Offsetting Principles provide a useful framework. These principles emphasize cutting emissions deeply before using offsets. They also prioritize removal over avoidance credits. For businesses developing net-zero strategies, this guidance helps structure credible commitments that avoid greenwashing risks.

Timing matters for market access. Early investment in emerging removal technologies supports cost reduction over time. Businesses that wait may face higher prices or limited availability. However, early movers also accept higher initial costs. This trade-off requires careful financial planning.

UK businesses should also consider how carbon removal fits tender requirements. Public sector procurement increasingly includes sustainability criteria. A well-structured approach to residual emissions can strengthen bids. Therefore, sustainable procurement strategies should integrate both reduction and removal components.

Where to find detailed guidance and resources

The Oxford Offsetting Principles provide comprehensive guidance on prioritizing reduction before removal. These principles were developed by the University of Oxford and are freely available online. They offer a framework for businesses developing credible net-zero strategies.

The Science Based Targets initiative sets standards for corporate climate commitments. Their Net-Zero Standard includes specific guidance on carbon dioxide removal and neutralization. UK businesses can access detailed technical resources through their website.

CUR8 operates as a carbon removal marketplace with transparent verification standards. Their platform provides information on different removal technologies and project types. Businesses exploring removal options can review methodologies and pricing.

The UK government’s Green Finance Strategy outlines policy developments affecting carbon markets. The Department for Energy Security and Net Zero publishes updates on carbon pricing and removal incentives. These resources help businesses anticipate regulatory changes that may affect removal investments.

Formula 1’s sustainability reports document the sport’s progress toward Net Zero by 2030. These reports detail the technical and operational changes being implemented across teams. UK businesses in high-emission sectors may find relevant case studies and approaches.