The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Environmental finance: Brazil pioneers carbon credits market

Rio de Janeiro now offers a developing market alternative to Chicago.

By its own admission, Brazil, with its continual destruction of the Amazon rainforest, is not the world’s most environment-friendly country. Yet South America’s largest economy is cleaning up its act and making money at it too, pioneering the carbon dioxide credits market in the region. According to the Universidade Federal do Rio de Janeiro, Brazil could earn about $3 billion a year from 2012 in trading carbon credits by selling other polluting nations the right to maintain their emissions without facing heavy fines under the Kyoto Protocol.

In late January, Rio began testing its first biodiesel passenger buses, which in full service could generate $2 million in carbon credits a year from around 2008. According to Brazil’s trade and development ministry, the global carbon credit trade could reach $40 billion a year in 2010, with about $21 billion traded outside the European Union’s emissions trading scheme.

Brazil’s futures market, the Bolsa Mercadorias & Futuros, has been particularly quick to catch on and has developed a carbon credit exchange in Rio to provide a developing world alternative to the Chicago Climate Exchange and the European market. The internet-based trading system, which was set up late last year, enables companies to register greenhouse gas-free projects – ranging from energy generation from renewable fuels to capturing methane gases from waste landfills to provide electricity – which are then analysed by the BM&F and put forward for trading.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree