The first carbon credit auction under the auspices of the Clean Development Mechanism (CDM), of the Kyoto Protocol, was carried out today at BM&F. The Exchange auctioned off 808,450 carbon credits held by the Bandeirantes Landfill Gas to Energy Project of the São Paulo Municipal Government. The European Fortis Bank NV/SA bought the lot at € 16.20 per metric ton of carbon. The São Paulo Municipal Government received an equivalent of € 13.09 million for the carbon credits (approximately R$ 34 million). Fourteen institutions were authorized to take part in the auction – nine of them placing bids. The minimum bid was € 12.70.
The Mayor of São Paulo, Gilbert Kassab, was present during the auction, which was held at BM&F’s headquarters in São Paulo. According to Mayor Kassab, proceeds from the auction will be used in social projects for the surrounding area of the landfill. “We are satisfied with the result of today’s auction. We are planning to build a number of parks for the population that lives near the landfill”, stated Kassab. The Mayor also announced to the press that the City of São Paulo is already planning other carbon credit auctions.
BM&F’s Chairman, Manoel Felix Cintra Neto, emphasized the auction’s importance: “The main carbon credit traders participated in the auction”, he said. “It is an important moment for both Brazil and BM&F. An auction, at a global level, like the one that took place today at BM&F, bestows great credibility to the carbon credits and attracts major investors”, affirmed Cintra Neto.
Click here for the auction notice.
Click here for further details on BM&F’s Carbon Market
