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 Dismisses Charges of Genocide in Haiti as Pro-Aristide Propaganda

    The former commander of the UN Mission for Stabilization in Haiti (Minustah), Brazilian general, ...

    Brazil and Korea Study Renewable Energy Sources

    Korea Electric Power Corporation (Kepco), a Korean state-owned company and Brazil’s Eletrobrás – Centrais ...

    Laptop computer

    Whew, Theft of Classified Data in Brazil Was Just an Inside Job!

    Petrobras publicly announced two weeks ago (February 14) that it got burglarized. Brazil’s state-controlled giant ...

    Despite Low GDP Brazil’s Economy Jumps from 15 to 11th Place in the World

    Brazil became the leading Latinamerican economy in 2005, ahead of Mexico, and ranked eleventh ...

    Typical Brazilian Sex Slaves Taken Overseas Are Girls 18 to 21 Years Old

    According to the United Nations Office on Drugs and Crimes (UNODC), young women, between ...

    Flower Power

    Even after having been contacted by the women who found themselves pregnant while taking ...

    US Curbs on China Boost Brazil’s Printing Sector

    Brazilian exports of printing material increased 60.21% in the first half of the year ...

    Brazil Studies Harmful Radiation in Airplanes

    An unprecedented study conducted by the Brazilian Air Force’s Center for Aerospace Medicine (Cemal) ...

    Co-ops and Leases Make Doing Crime More Affordable in Brazil

    Five years ago, a German-made Heckler & Koch (HG) G3 battle rifle, capable of ...

    Brazil to Replay Its Agricultural Prowess This Year

    Brazil’s 2005 agricultural harvest should attain 119.48 million tons, practically the same as in ...