BM&FBOVESPA Signs Agreement with State Government
OREANDA-NEWS. June 14, 2012. BM&FBOVESPA, the Sao Paulo State Government’s Environment Secretariat, and the Environmental Agency of Sao Paulo State (CETESB) signed a protocol of intent today (June 05) that seeks to study institutional and regulatory measures for the development of the environmental assets market. The initial focus is on the Greenhouse Gas Emissions and Legal Reserve Compensation segments.
The agreement was signed at the Governor’s Palace during an event to commemorate World Environment Day. The event included Sao Paulo Governor Geraldo Alckmin, State Environment Secretary Bruno Covas, BM&FBOVESPA CEO Edemir Pinto and CETESB Director General Otavio Okano.
A new working group will be created within ten business days as of today, responsible for the activities foreseen in the protocol. As part of efforts by the government and the Exchange, a technical proposal will be drawn up that will describe the general characteristics of the Environmental Market and the main aspects of the institutional and operational structure necessary for its implementation, including the assets that may be used in transactions and the respective mechanisms for their issue, registration and trading.
The prerequisites for the Greenhouse Gas Emissions segment include determination of targets by the relevant bodies, the creation of rules for emission reduction criteria and the monitoring and double checking of corporate inventories.
The Legal Reserve Compensation segment requires, among other things, the creation of rules for emission reduction criteria and for checking legal reserves, as well as approval by the state government of the areas to be offered for meeting this obligation.
Also on the agenda of work to be done is the implementation of an appropriate operational structure that includes a registration system and trading platform for environmental assets, while being in line with state and federal legislation.