Bloomberg reports that the largest Brazilian city will be selling Carbon Emission Permits for the first time on the 27th September. An equivalent of 808,450 tons of CO2 in permits gained through the city’s Clean Development Mechanisms will be sold, with a minimum bid price that will be set at a 40% discount rate of the European permits for December 2008, traded between September 17th to 26th. “The city may raise about $30 million from the sale”.

“This represents an important initial step in the organization and development of a global market for environmental certificates,” according to the joint statement from the city and exchange.

The need to reduce carbon emissions in Brazil, Latin America’s biggest economy, will increase as the country relies more on fossil-fuel-fired plants to generate power to make up for a limited supply from hydro-electric facilities, according to Fernando Abdalla, an analyst at Uniao de Bancos Brasileiros SA. In Europe, the cost of buying emission-reduction permits is passed on to consumers, he said.

Technorati Tags: Carbon Emission Permits, CO2, Clean Development Mechanisms, carbon emissions, fossil-fuel, hydro-electric

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