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For the first time, rural property auctions will accept carbon credits as payment

Banco do Brasil (BB) is holding a real estate auction in which, for the first time, it will be possible to pay for them with carbon credits, in part or in full. They are rural properties in the States of Mato Grosso, Mato Grosso do Sul, Goiás, Paraná and Santa Catarina.


Read here what appears in the notice of public auction 2023/706544(7419) of BB, part “Regulation of Carbon Credits” (Annex 08):


  1. All acquisitions will be based on the standards and terms recognized by the regulated market (CDM – Clean Development Mechanism) and/or the voluntary market (VCS – Verified Carbon Standard, Gold Standard, GCC - Global Carbon Council, SocialCarbon Standard, CCBs – Climate, Community and Biodiversity Standard).

  2. Carbon credits must be registered on a public platform such as VERRA (https://verra.org/), BC Carbon Registry (https://carbonregistry.gov.bc.ca), Markit Environmental (https:// ihsmarkit.com), or equivalent, that can prove the origin, certification standard and traceability of the CERs/RVEs, as well as the transfer of carbon credits to Banco do Brasil S/A.

  3. Banco do Brasil will act as the holder of the carbon credits acquired with the purpose of offsetting Greenhouse Gas (GHG) emissions, whether own or from customers.


In addition, the notice also defines that the maximum unit value of acceptability of carbon credit certificate titles will be R$ 88.27 / ton of CO2eq. Click here for an article from Campo Grande News, with some more interesting information and specific to a property being auctioned in that State.


Click on the image below to the auctioneer's website, link to the farm in Mato Grosso (426.00 ha). It includes the Public Notice of Banco do Brasil and questions and answers from interested parties. Obviously extremely interesting too:

  • other methodologies not mentioned. And some not accepted

  • use of older vintage carbon credits

  • temporal window of credits that will be accepted

  • credits on behalf of third parties

  • Global Carbon Offsets Report





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 CARBON CREDIT MARKETS

“Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.”

“I am among those who think that science has great beauty”

Madame Marie Curie (1867 - 1934) Chemist & physicist. French, born Polish.

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