SAO PAULO, December 11 /PRNewswire/ -- The Brazilian Securities, Commodities and Futures Exchange - BMFBOVESPA will hold on December 22 the first voluntary carbon credit market auction. A total amount of 240,000 voluntary carbon units from projects managed by the Social Carbon Company will be auctioned.
The emission reductions were generated from 11 renewable biomass projects administered by the Social Carbon Company in porcelain factories. These plants are located in the Brazilian states of Sao Paulo (Panorama, Presidente Epitacio, Pauliceia), Para (Sao Miguel do Guama), Pernambuco (Lajedo, Paudalho), Sergipe (Itabaiana), Minas Gerais (Ituiutaba), and Rio de Janeiro (Itaborai). The projects reduce gas emissions by replacing gasoline with renewable biomass fuels like sugarcane bagasse, acai seeds, and rice husks, among others. The carbon credits have been validated by certified entities authorized by the United Nations Framework Convention on Climate Change (UNFCCC).
The auction will be held in four sessions, with a lot traded per session. The initial bidding prices will be indicated by lots that vary in accordance with the vintages and are priced at BRL 8.00 to BRL 14.00 per unit. The first transaction will occur at 1 p.m. (Brazil Time) and will be carried out by BMFBOVESPA's Carbon Credit Trading System. The financial settlement will be coordinated by Liquidez DTVM brokerage house.
BMFBOVESPA's Carbon Credit Market
The Brazilian Exchange has previously organized two carbon credit auctions in 2007 and 2008. Both auctions offered Certified Emissions Reductions (CERs), held by the Sao Paulo Municipal Government, and generated by the Bandeirantes and Sao Joao landfill projects.
The objective of BMFBOVESPA's carbon market is to foment carbon credit trading in Brazil within an organized trading environment. It also provides Brazilian companies an opportunity to sell their GHG emission reduction projects in the country. The Exchange's trading platform offers global participants a secure, transparent, and efficient trading atmosphere with competitive prices.
About BMFBOVESPA
BMFBOVESPA S.A. - The Brazilian Securities, Commodities and Futures Exchange was created in 2008 with the integration between the Brazilian Mercantile Futures Exchange (BMF) and the Sao Paulo Stock Exchange (Bovespa). Together, the companies have created one of the largest listed exchange groups in the world, the second in the Americas, and the leading exchange in Latin America. The Exchange features a vertically integrated business model, with trading, registration, netting, settlement, risk management, market data, and central securities depository services. BMFBOVESPA's state-of-the-art technological resources provide investors with an efficient and secure trading and post-trading environment. Among its broad range of trading products, the Brazilian Exchange offers equities, securities, financial assets, indices, interest rates, agricultural commodities, as well as foreign exchange futures and spot contracts, and acts as a central counterparty for all of its market segment through its four clearinghouses -- equity, derivatives, foreign exchange, and securities.
About Social Carbon Company
The Social Carbon Company provides carbon management services to project developers in the Verified Emission Reduction (VER) market and applies Voluntary Carbon Standard (VCS) and SOCIALCARBON(R) Methodology to implement carbon emission reduction projects in partnership with project developers. This unique approach to project development and sustainability reduces project risk and adds long term sustainability to the projects. The current list of projects includes the switching from non-renewable biomass as a fuel source to renewable biomass sources, energy efficiency, landfill and small-scale hydro-electricity. For more information, please visit www.socialcarbon.com.
SOURCE: Brazilian Securities, Commodities and Futures Exchange - BMSOURCE: FBOVESPA
CONTACT: Sergio Malzoni, Social Carbon Company, +55-11-2649-0036 or+55-11-9950-4973, sergio@socialcarbon.com; or Carmen Barcellos,BMFBOVESPA, +55-11-2565-7865, +55-11-2565-7746, +55-11-2565-7764,imprensa@bmfbovespa.com.br
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