Companhia Brasileira de Alumínio and green economy project developer Reservas Votorantim are issuing the first carbon credits generated from the Cerrado biome, according to a statement on Tuesday (30).
The credits will be auctioned from that date, and potential buyers have until the end of September to submit bids, the companies said.
The issuance of carbon credits generated in preserved areas of the Cerrado is a pioneer, according to the statement. At this time, around 316 thousand credits will be generated, covering the period between 2017 and 2021.
The Cerrado, with a predominance of soy and corn cultivation for export and local consumption, is being destroyed faster than the neighboring Amazon rainforest, according to the Worldwide Fund for Nature (WWF).
In Brazil, according to the 2012 forest code, farmers must conserve 35% of the area of their properties in the Cerrado, and 80% of the area if the farm is in the Amazon.
Strengthening voluntary carbon markets is an important tool for reducing deforestation in Brazil, as it offers a way to compensate farmers who preserve vegetation even in places where they can legally cut trees.
Reservas Votorantim has certified an area of 11,500 hectares in the state of Goiás, where it will be able to generate around 50,000 carbon credits per year, according to the statement.
Source: CNN Brasil
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