Brazil launches carbon trade
Brazil’s Mercantile and Futures Exchange (BM&F) will begin carbon trading in São Paulo on September 27, auctioning CER carbon offsets from projects under Kyoto’s Clean Development Mechanism (CDM).
Trading will kick off with 808,000 CERs up for sale from a landfill methane capture project run by the São Paulo city administration, with a minimum price to be announced the day before the auction. The auction rules set a minimum bid price at 60 per cent of the average of December 2008 EUA settlement prices on the European Climate Exchange over the ten days preceding auction day.
The city administration is reported to be seeking $US30 million from the auction sale but if correct this appears overly optimistic, requiring $37 per CER. Current prices for issued CERs are around $20.
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