Carbon Credits to Be Traded at Brazil’s Stock Exchange

The project establishing the Brazilian Greenhouse Gas Emissions Reduction Market (MBre), or carbon credits market, should begin to operate on the Rio de Janeiro Stock Exchange in the second half of the year.

This information was provided today by Virgí­lio Gibbon, professor at the Getúlio Vargas Foundation (FGV) and coordinator of the national MBre project, at the request of the Ministry of Development, Industry, and Trade (MDic), directed to the Commodities and Futures Market (BM&F).


The MBre was launched by the MDic and the BM&F last December and will allow Brazil, given its status as a developing country without targets to meet in the Kyoto Protocol, to offer projects that will contribute to the diminution of the greenhouse gas effect, Gibbon explained.


This will put the country in the position of generating these credits, which are currently being sold on the international market, even in the preliminary stage, prior to certification.


Gibbon said that it is still difficult to estimate the benefits, including the financial ones, that this market can confer on Brazil.


However, to get an idea of the magnitude of the program, the professor calculated that it should become one of the world’s biggest markets in the coming years, “because the Kyoto Protocol refers only to the initial commitment period, which runs from 2008 to 2012, when developed countries are obliged to reduce their emissions to a level 5.2% lower than they were in 1990.”


Since the mechanism aims to minimize the costs of reduction, the market is expected to channel a large volume of investments to developing countries, where it costs less to implement projects to contain emissions, he explained. In Japan, for example, reducing gas emissions costs as much as US$ 500/ton.


Gibbons believes that this will lead to a large influx of funds, not just to purchase credits but also to invest in the development of projects.


“And this should open prospects for connecting capital markets in the northern and southern hemispheres, which can be very significant. The flow of capital could be very substantial. We are talking about projects on the order of US$ 50 million, US$ 100 million, each,” he said.


Added to this are the carbon credits that can be traded, he observed. “It is really a very impressive market, very important, and irreversible, because the planet is heating up,” Gibbon says.


Translation: David Silberstein
Agência Brasil

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazil’s De Millus Wants Its Panties and Bras Beyond Japan and LatAm

The company De MiHlus, one of the largest Brazilian lingerie manufacturers, has plans for ...

Brazilian Embraer Sells 50 Jets to Texan Taxi Service

The Brazilian aircraft manufacturer Embraer announced today, September 5, the sales of 50 executive ...

LETTERS

In movies, plays, music, art, and literature, the Brazilian culture continues more alive than ...

Brazil Wants Rules Changed by IMF and Co.

Brazil’s Minister of Cities, OlÀ­vio Dutra, wants Brazil to revise its relationship with international ...

Brazil Lets Airlines Offer Discounts on International Flights

The Brazilian government is starting to loosen its grip on international airline tickets including ...

Presidents Bush and Lula talk about ethanol at Transpetro, in São Paulo, Brazil

Lula & Bush Didn’t Discuss What Brazil Wanted Most: Tariff Reductions

Brazil and the United States signed today, March 9, a memorandum of cooperation in ...

Brazilian Design with an Eye for the Ecologically Correct

Headquartered in Belo Horizonte, capital of the southeastern Brazilian state of Minas Gerais, CWT ...

Best-seller Books, Plays and Movies

By Brazzil Magazine RIO Nervos de Deus (Nerves of God). Based on German judge ...

Penelope

He eats with his head down, without a word. At night, he reads the ...

Brazilian Federal Police Tap and Threaten the Press

Reporters Without Borders today, November 10, condemned the action of the federal police in ...