CIG: Brazil and Saudi Arabia seen as blocking progress of the carbon offset markets at Copenhagen.

Dec. 16, 2009 - PRLog -- CIG has learned that dissent seems to be increasing at the Copenhagen climate change conference, where reforms to the $6.5 billion carbon offset market, currently governed by the Kyoto Protocol, called the Clean Development Mechanism (CDM), have been proposed, but most have been turned down.

One source close to the negotiations was quoted as saying, “All the measures that would allow this mechanism to scale up, including standardized baselines, more due process and more transparency are being blocked by Brazil. The Brazilian forestry proposal and the Saudi Arabian carbon capture and storage (CCS) proposal have been contested by each other since day one ... This could be a deal-breaker at every level and could hold up a final agreement."

Deforestation, which CIG believes contributes almost one fifth of global carbon emissions, has Brazil lobbying wealthier nations to pay  for the preservation of the countries and other Amazon rainforests under the CDM by which companies can purchase carbon credits to offset their CO2 emissions,  but the oil rich Saudi Arabia is opposed to this saying that forestry offsets would dilute the value of credits they would be marketing for carbon capture and storage projects which are more costly to generate.

CIG has learned that Brazil is currently managing 165 carbon offset projects, almost 8.5% of the total 1952 registered schemes under the CDM as opposed to Saudi Arabia’s 0.

It is felt that after years of delays on a decision on CCS funding one will not be forthcoming from Copenhagen.

# # #

CIG is an exclusive, members only, off shore, private equity investment firm that provides consulting services to like minded members of the private equity and alternative investment community.