São Paulo sells its carbon credits
October 03, 2007
On 26 September, São Paulo (Brazil) sold millions of dollars worth of carbon credits in a deal that experts said pave the way for developing countries to make money while reducing greenhouse gas emissions.
São Paulo sold $US 18.5 million in carbon credits to Dutch-Belgian Fortis Bank. It was the first such sale to be held on a regulated stock market.
Fortis Bank beat out twelve competing bids to win the rights to emit 808,450 metric tons of carbon dioxide with an offer of $US 22.90 per metric ton.
The auctioned credits were created for São Paulo’s government by a project at the Bandeirantes Landfill to generate energy from the methane gas produced by the tones of solid residues it receives per day.
More and more cities are facing the need to mitigate climate change while already adapting to the changes brought about by climate change. ICLEI’s Cities for Climate Protection® (CCP) Campaign is an innovative international campaign that helps local government and their communities to reduce greenhouse gas emissions and their impact on the environment. And now, the CCP Campaign is launching the Adaptation Initiative, building capacity for climate change impacts at the local level. For more information, please visit www.iclei.org/ccp.
São Paulo is one of 24 local governments in Latin America and the Caribbean that are currently Members of ICLEI – Local Governments for Sustainability. For more information on ICLEI and its activities in the Latin America and Caribbean Region, please visit www.iclei.org/lacs.
Source: “Brazil claims first with carbon auction”, Associated Press, 27 September 2007