14 May 2012
Brazil carbon market to experience 'huge' growth
Brazil's new carbon market could experience 'huge' growth in the next eight years, as the government seeks to curb emissions from deforestation and industry.
That is the bullish prediction of some of Brazil's leading economists, who are also looking to the UK for advice in developing a successful emissions trading scheme, according to KleanIndustries.
Speaking to reporters at Sao Paulo's FGV school of economics, Mario Monzoni, founder and director of sustainability studies, predicted a cap-and-trade scheme would be the most important mechanism to cut emissions from deforestation.
Deforestation currently accounts for around 80 percent of Brazil's greenhouse gas emissions, driven by the growth of agri-businesses including cattle farming, soya bean and sugar cane.
Brazil's first government-backed carbon trading scheme, Bolsa Verde do Rio de Janeiro (BVRio), was launched in December last year. Last week it opened pre-registrations for a new forestry credit market, which can be used by farmers to comply with the country's Forestry Code.
The code requires landowners to retain certain levels of vegetation on their land, but those with more forest than the legal minimum would be able to sell it as a carbon credit to those falling short of the minimum requirement.
His bullish forecasts were echoed by Gustavo Loyola, former president of Brazil's central bank. In a separate interview in Sao Paulo he told reporters that financial mechanisms such as cap-and-trade would be crucial to cutting emissions in Brazil.
"The way to conciliate these is two ideas - growth with conservation of the environment - is to use mechanisms to reduce carbon emissions. So I think Brazil is one of the few countries in the world that could benefit from this kind of mechanism," Loyola said.
OPTIONS AND HELP
To give any feedback, click:http://www.energy-enviro.fi/index.php?PAGE=57&feedback
Email to a friend
To email this article to a friend, click:http://www.energy-enviro.fi/index.php?PAGE=58&ARTICLE_ID=2&ID=4202&email
To subscribe to our mailing list, visit:http://www.energy-enviro.fi/index.php?PAGE=59&subscribe
To unsubscribe mailing list, click:http://www.energy-enviro.fi/index.php?PAGE=60&unsubscribe