Brazil can earn up to R$ 160 million a year on clean energy projects .
Currently Brazil is the third country with the largest number of Clean Development Mechanism (CDM) projects registered with 207 projects, second only to China with 2244 projects and to India with 875 projects.
The Clean Development Mechanism ( CDM ) was established by the Conference of Parties to the UN Framework Convention on Climate Change ( UNFCCC – United Nations Framework Convention on Climate Change) as an alternative to help developed countries to fulfill the goals of the Kyoto Protocol ( Article 12 ) .
The CDM is the development and implementation of projects in an emerging country with the aim of reducing the emission of greenhouse gases (GHG) , and contribute to the development of a local sustainable culture. Each tonne of CO2 not released into the atmosphere, is equivalent to one unit of carbon credits, called Certified Emission Reductions (CERs), which is subsequently traded on the world market .
The group of buyers of these credits is headlined by countries or companies that wish to reduce GHG emissions at a lower cost, without having to invest in projects in their own territory .
The responsible for overseeing the CDM is the Executive Committee ( EC ) of the UNFCCC , which approves projects and methodologies of the mechanism .
According to a study by the Brazilian Agricultural Research Corporation (Embrapa), released on the National Plan for Agro-energy, agribusiness in Brazil , has the potential to earn US$ 160 million anually by selling of carbon credits. Sales may reach US$ 400 million annually with the inclusion of other segments of the economy .