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The Brazilian Mercantile & Futures Exchange (BMFE) has taken a first step towards the creation of a carbon credit market. The first phase of the Brazilian carbon market was launched on September 15, with the inauguration of the BMFE Carbon Facility at the Rio de Janeiro Stock Exchange (BVRJ).
The seminar “Future and Sustainability: Organising the Carbon Market in Brazil “was held at the BVRJ to mark the beginning of the new market, with the presence of environment specialists from Brazil and abroad.
The carbon facility is an electronic registration system available at both BMFE’s and BVRJ’s websites, in which project proposals within the Clean Development Mechanism (CDM) criteria can be registered. Both validated projects and project idea notes can be registered. The carbon facility also accepts expressions of interest; however, it is not, at the present moment, a trading system, functioning primarily as a display of projects for those interested in offering or acquiring carbon credits or in financing the projects.
The Brazilian carbon market was launched in December 2004 in a joint initiative between the BMFE and Brazil’s ministry of development, industry and foreign trade. The goal behind the initiative is to create an organized and transparent carbon credit market, based on proposed or registered projects at the BMFE Carbon Facility.
During the following months, the Brazilian carbon market will begin implementation of its trading facility, which should be operational by the end of 2005.