How is the panorama of carbon credit supply in Brazil?
Today, Brazil is considered the Saudi Arabia of Carbon Credits, since the country has approximately 40% of the tropical forests in the world (in second place comes Congo, with 11% and then, several countries in sub-Saharan Africa and Southeast Asia).
Is Brazil the new “Saudi Arabia” of Carbon Credit?
Ten countries with the largest forest area in the three rainforest basins, 2010
Brazil certifies approximately 5 million tons of CO2eq per year, with the potential for the certification annually of more than 1.5 billion tons. Thus, Brazil’s annual supply of carbon credits could grow by 300x. If this happens, according to Shroders, Brazilian GDP growth would increase from 2% to 6% . Nevertheless, the potential supply will take time to flourish.
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