Brazilian new carbon market
Further to a previous post concerning the introduction of carbon permit sales in a Brazilian stock market: the Brazilian Mercantile and Futures Exchange yesterday ended the first auction for carbon credits on sale in the amount of 808,450 tons of CO2. The Dutch-Belgian Fortis Bank placed the highest bid amounting to $18.5 million for all credits on sale, according to CNN. This is less than expected, however the auction “paves the way for developing countries to make money fighting global warming”, and “a significant step toward institutionalizing the carbon market”, indulging a hopeful future for Brazil and other high emitting countries.
The carbon credits were created from the city’s Clean Deveopment Mechanisms, particularly a “project at the Bandeirantes Landfill to generate energy from the methane gas produced by the tons of solid residues it receives per day. The project is run by privately held Biogas Energia Ambiental SA.”
” Until Wednesday’s auction on the Brazil stock exchange, companies such as Fortis mostly purchased credits from individual sellers. Experts said the sale could be a major step toward creating a clearer system that could make buying and selling easier.
Fortis Bank beat out 13 competing bids to win the rights to emit 808,450 metric tons (891,163 U.S. tons) of carbon dioxide with an offer of $22.90 per metric ton, the exchange said in statement. It called it the first such sale on a regulated exchange.”