Carbon Market Funding for the Development of Areas of Pastures: The Case of Small Farms in the State of Rio de Janeiro, Brazil

Fabiano Chagas, Osvaldo Gonçalves Quelhas, Roberto Pereira and Valdir Lameira

Energy and Environment Research, 2013, vol. 3, issue 2, 198

Abstract: This study aims to examine, within the Local Development, the reforestation with eucalyptus on land used for grazing. Uses the Market Certified Emission Reductions (CER) as a source for funding, through projects of Clean Development Mechanism (CDM). The study analyzes the cash flow of small-scale beef cattle operation and simulates the eucalyptus plantation on the farms. The area selected for this study covers the family-structured farms of small and medium extension on the beef cattle industry in north-central state of Rio de Janeiro, Brazil. The research method used was a literature review, application of the methodology recommended by the UN and cash flow analysis. Analysis of Net Present Value (NPV) considering the eucalyptus plantations for energy purposes, has brought positive values. The study confirms that the implementation of forestry along these models is itself a profitable activity. This study applied the methodology AR-AMS0001, recommended by the executive board of the United Nations on Climate Exchange.

Date: 2013
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