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:

Ads

You May Also Like

Brazilian Jobs Grow in Transport But Fall in Wood and Leather Sectors

Brazilian industry sector's employment rate  grew by 1% from August to September, according to ...

Mercosur Viable Only If Brazil and Argentina Recover, Says Kirchner

Mercosur has “deep asymmetries” and until they are not solved, “the regional block will ...

Lula’s Last Appeal: When You Vote for Dilma You Vote for Me

Brazilian president Luiz Inácio Lula da Silva called on fellow Brazilians to vote for ...

Brazilian Police Break Soccer Ring That Was Cheating the IRS

Brazil’s Federal Police have just broken up a soccer corruption ring that illegally raised ...

It’s a Game, It’s a Fight, It’s a Dance

By Brazzil Magazine A sweet memory, the birth of inspiration, the flame of desire, ...

Brazil’s Amazon Deforestation Is Protected and Encouraged by the Constitution

In the last few weeks, a series of major events has signaled the urgent ...

The WTO Battle Lost, Can Brazil Still Win the War?

In a statement made last week by Foreign Minister Celso Amorim, Brazil has withdrawn ...

European Painters Worth US$ 50 Million Stolen During Brazil’s Carnaval

A spectacular robbery of art works by Picasso, Matisse, Monet and Dali marred the ...

When Brazilian Jazz Came to the US

Little did jazz guitarist Charlie Byrd and his friend saxophonist Stan Getz know that ...

Depressed with Brazil’s Loss Lula Wants to Skip World Cup Final in South Africa

It seems now that Brazilian president Luiz Inácio Lula da Silva will not attend ...