The first auction of carbon credits from the new Bolsa Verde Rio, which ended last Thursday (April 28), was a pioneer in many ways. In addition to marking the beginning of operations of the AirCarbon Brasil platform, of which BlockC is a partner, it was the first public offering of carbon credits generated by urban micro mobility in the world - the assets were originated by the operation of Tembici, a shared bike company that owns of Itaú's “little oranges”. In this interview, the CEO of BlockC and director of AirCarbon Brasil, Carlos Martins, explains in detail the relationship between the two companies and shows the benefits of the initiative, not only for Brazil, but for the entire planet.
“We are at a point where we urgently need to rethink the impact we are having on the environment. That's why it's gratifying to see companies like StoneX and Climate Seed clinching the credits offered by Tembici, and thus helping to build a sustainable world”, says Carlos Martins. The credits generated by Tembici were calculated by ZCO2, another BlockC group company dedicated to promoting responsible consumption and fighting climate change through tokens backed by carbon credits.
What is BlockC's role in AirCarbon Brasil, the new carbon credit exchange that started operating in Rio de Janeiro?
BlockC is the integrator of AirCarbon Brasil's systems. It is also a minority partner with a 20% stake in the local company and is responsible for operationalizing the commercialization of environmental assets. It is BlockC that works together with buyers and sellers in the context of offering BlockC customers the complete decarbonization journey: it can be an asset with which it has emissions reductions to sell, which are such carbon credits; can be a liability, for those who have to buy carbon credits
Why was this city chosen to host the exchange?
Rio was chosen not only for its history of preservation, linked to Eco92 and the fact that it is home to the largest urban forest in the world, but above all for its business context. Of the four sectors of the economy called “hard to slaughter”, in which the reduction of greenhouse gases is difficult because there is still no economically viable technology to achieve zero emissions, at least three of them have a relevant chain of command in the city of Rio de Janeiro. . The sectors that, in the jargon of combating climate change, are called “hard to slaughter”, are fertilizers, cement, steel and plastics, and three of them have a relevant connection with the largest companies based in Rio, such as Petrobras, for example. Our expectation is to be close to the sectors that will need to place the carbon economy in the asset or liability account of their balance sheets.
Tell us more about the papers that will be traded on the stock exchange?
Initially, the assets traded on the exchange will be carbon credits from the voluntary market, to reduce emissions under global protocols such as Kyoto and the recent Paris agreement. This includes not only environmental assets traded in voluntary market global custodians, such as the UN, but also local assets that can be traded, such as Brazilian Renewable Energy Certificates and Renewable Natural Gas Certificates.
How does AirCarbon Brasil complement the BlockC solutions portfolio?
AirCarbon Brasil brings to the country the clearest and most reliable signaling of price and availability of environmental assets. So, if your company needs to buy or plans to sell carbon credits, AirCarbon Brasil will be the natural place for you to discover the fair price of these assets, since without an exchange that allows free trading, you are left in the hands of brokers, over-the-counter or bilateral agreements. The stock exchange, by definition, generates a lot of liquidity and price signaling, both for those who have assets and for those who have greenhouse gas reduction liabilities. BlockC customers will benefit greatly from all of this, which will more efficiently complement their decarbonization journey.
Will there be direct benefit to BlockC customers?
For regulatory and compliance reasons, we obviously cannot offer special trading conditions on AirCarbon Brasil for BlockC customers. However, it is natural that the market knowledge that our teams acquire from the exchange's operation will improve our ability to offer increasingly efficient solutions for our clients' decarbonization journey.
