Brazil - Brazzil Mag - Brazil Offers Loans to Help Reduce Greenhouse Gases

A new loans and grants scheme in Brazil will fund company initiatives that help reducing carbon emissions through the Kyoto Protocol's Clean Development Mechanism.

Projects and research that help remove greenhouse gases from the atmosphere or reduce their emissions will be eligible for the scheme, the first private sector financing program of its kind in Brazil.

The Ministry of Science and Technology unveiled last week the US$ 37 million scheme, which will run until 2009.

The Clean Development Mechanism (CDM) was established last year to encourage sustainable development in developing countries. It allows industrialized countries to earn emissions credits by investing in emission reduction projects in developing countries.

The Brazilian scheme offers loans to support research studies on the viability of future CDM projects, and to finance the implementation of new technologies that help to reduce greenhouse gases in the air.

Eligible projects must cost a minimum of US$ 233,000. The Research and Projects Financing (Finep), a public agency linked to the science ministry, will cover 90% of the costs. The companies will have to repay the loan within 10 years of receiving it.

The scheme will also offer grants to cover up to 50% of projects carried out by medium-sized and large companies in partnership with scientific and technological institutions.

Proposals for the grant must relate to new technologies or research on emissions monitoring and assessment, with a minimum cost of US$ 140,000. To receive the funding, companies should cover at least half of the project's total value, and the project must be completed within two years.

Fabrício Brollo, head of Finep's Agribusiness Department, said Brazil has a leader role in the CDM sector.

"The country ranks second in its potential in carbon trading, only behind China," said Brollo, adding that the total carbon credit market in Brazil, between now and 2012, is estimated to be worth US$ 1 billion.

Kyoto unfair
written by Not fair, 2006-12-19 16:18:19

This is why developed nations hate the Kyoto protocol. Countries like Canada, New Zealand and Australia are much younger than Brazil, and produce far fewer emissions than Brazil, but are obligated to give “underdeveloped” countries like Brazil CASH in exchange for carbon credits. Brazil is the 4th or 5th largest carbon polluter in the world because of the fires in the Amazon, but are not obligated to reduce their emissions, nor purchase carbon credits. So now countries like the ones mentioned above, need to buy credits from a country that pollutes more? Makes no sense. Of course, Brazil will look to their people and say “look at the money WE are investing” when it in fact is first world cash! Kyoto is a joke.

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written by sarah smithen, 2008-04-07 21:54:47

um.... it wasnt very informative but u did a good job "i think" smilies/tongue.gif

hehe i am sticking my tongue out at u!!!!! hahahahahahahahahahahaha anyway its not a very god help!!!! but it also aint bad so thanx but no thanx!

~ sarah~