Fortis Bank buys €13.1 million worth of carbon credits from biogas project in Brazil, at first internet auction
Belgian-Dutch Fortis Bank has bought carbon credits equivalent to 808,405 tonnes of CO2 which were offered in an auction by the São Paulo Municipal Government on the Brazilian Mercantile & Futures Exchange (BM&F). This was the world’s first Certified Emission Reductions (CERs) spot market auction managed and promoted by a regulated exchange, representing an important initial step in the organization and development of a global market for environmental certificates. The auction was carried out via the Internet.
Fortis Bank paid a total €13.1 million(US$18.5 million), which comes down to 16.20 €/tonne. The minimum price was 12.70 €/tonne and according to BM&F nine companies participated in the auction. (The carbon price in Europe currently stands at 21.23 €/tonne).
The carbon credits or CERs were approved by the UNFCCC's Clean Development Mechanism (CDM), a Kyoto Protocol instrument that allows wealthy and industrialised countries to buy carbon credits from or invest in clean energy projects in the developing world, as an alternative to more expensive emission reductions in their own countries.
The credits were issued by the Bandeirantes sanitary landfill, where methane gases are collected by private company Biogás Energia Ambiental and used to generate electric energy. The fact that the project involves carbon credits, alternative energy production and social development - the money is going to be invested in community projects - helped increase the final price, the city's adjunct municipal secretary Stela Goldenstein said.
sustainability :: biomass :: bioenergy :: biofuels :: municipal waste :: biogas :: carbon credits :: certified emission reductions :: CDM :: Brazil ::
Brazil is one of the leading generators of CERs in the world, after China and India. Many CDM projects involve direct participation of companies from the industrialised world but often intermediaries - banks and specialised carbon credit constultants - close the deals. The auction at the Brazilian Mercantile & Futures Exchange however was the first direct internet-based deal.
The BM&F Settlement Bank provided oversight and provides the cash settlement services.
References:
Reuters Brasil: Fortis leva lote total de créditos de carbono em leilão na BM&F - September 26, 2007.
O Globo Online: Fortis leva lote total de créditos de carbono em leilão na BM&F - September 27, 2007.
Brazilian Mercantile & Futures Exchange: Carbon Credits: BM&F will hold an auction on September 26th - September 21, 2007.
Fortis Bank paid a total €13.1 million(US$18.5 million), which comes down to 16.20 €/tonne. The minimum price was 12.70 €/tonne and according to BM&F nine companies participated in the auction. (The carbon price in Europe currently stands at 21.23 €/tonne).
The carbon credits or CERs were approved by the UNFCCC's Clean Development Mechanism (CDM), a Kyoto Protocol instrument that allows wealthy and industrialised countries to buy carbon credits from or invest in clean energy projects in the developing world, as an alternative to more expensive emission reductions in their own countries.
The credits were issued by the Bandeirantes sanitary landfill, where methane gases are collected by private company Biogás Energia Ambiental and used to generate electric energy. The fact that the project involves carbon credits, alternative energy production and social development - the money is going to be invested in community projects - helped increase the final price, the city's adjunct municipal secretary Stela Goldenstein said.
The result is positive and now we have close to 34 million reais to invest in the neighborhood [in which the landfill is located]. This is apart from the 2008 budget for environmental projects. - São Paulo mayor Gilberto KassabThe carbon credits from the Bandeirantes operation are evenly divided by Biogás and the municipality. The auction was only for the municipal government's share. Biogás has already sold its credits directly to German bank KFW, said Biogás official Manoel Antonio Avelino da Silva:
sustainability :: biomass :: bioenergy :: biofuels :: municipal waste :: biogas :: carbon credits :: certified emission reductions :: CDM :: Brazil ::
Brazil is one of the leading generators of CERs in the world, after China and India. Many CDM projects involve direct participation of companies from the industrialised world but often intermediaries - banks and specialised carbon credit constultants - close the deals. The auction at the Brazilian Mercantile & Futures Exchange however was the first direct internet-based deal.
The BM&F Settlement Bank provided oversight and provides the cash settlement services.
References:
Reuters Brasil: Fortis leva lote total de créditos de carbono em leilão na BM&F - September 26, 2007.
O Globo Online: Fortis leva lote total de créditos de carbono em leilão na BM&F - September 27, 2007.
Brazilian Mercantile & Futures Exchange: Carbon Credits: BM&F will hold an auction on September 26th - September 21, 2007.
1 Comments:
Great read, many thanks for the content and the references.
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