With the publication of reports on climatic changes, there is a growing concern as to the ways of producing the so-called alternative energy sources and the application of the terms of the Kyoto Protocol.
The recent carbon bond market was created through the Brazilian Mercantile & Futures Exchange Market (BMF). Besides, several requests for the certification of these projects were made to launch these bonds onto the market.
Even though the United States has not yet signed the Protocol, it already operates on the market through the Chicago Stock Exchange, thereby showing that the trade of those bonds is attractive, even if these were made through the negotiation of foreign securities.
Some areas of Brazil are preservation areas, differently from what occurs with the outlining of Brazilian national reserves, which are public plots of land whose vegetation cannot and must not be changed.
These projects are made viable thanks to the plantation of species which have the characteristic of allowing for a greater sequestration of carbon in the atmosphere and which are so far away from distribution and consumer centers that they compromise the economic feasibility of any farming exploitation.
The market in carbon credits may also be attended by financing the production of ‘green’ fuels. Financing the sale of local fleets of vehicles which consume those fuels is also another alternative.