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Brazil's Piaui State plans to use carbon credits for rainforest protection

It was announced on Tuesday that the Brazilian state of Piaui would issue carbon credits as a reward for actions taken to combat deforestation. This will give momentum to other regional initiatives to protect the country's forest.

Brazil wants to keep its ambitions in reducing emissions, as it prepares for the next round of climate talks to be held in the Amazonian town of Belem this November.

Piaui, unlike traditional forest protection plans proposed by private landowners and involving government and local communities, is focused on public sector efforts. These efforts cover a larger area and are aimed at avoiding simply shifting the location of deforestation.

In the states of Tocantins, and Para, similar projects known as jurisdictional are currently being developed.

Investe Piaui (the state's mixed-economy company) announced on Tuesday that it had signed a contract with Silvania, an investment firm, to provide 10-20 millions reais (3.69 million dollars) for the development of the program.

Silvania, a Brazilian company, will be the credit taker. Systemica will assist with the technical side of the program. Geonoma, a company that provides environmental services, will be leading the development of the programme.

The group stated that if Piaui reduces deforestation 10% annually, it can generate over 20 million credits in 2030, which they could sell to countries and companies to help them achieve their own emission targets.

In a press release, the Governor of the state Rafael Fonteles stated that "Through Investe Piaui we will protect our forests and create sustainable opportunities for communities."

Carbon credits may not always deliver the environmental benefits that they claim, but their importance could increase as governments become more focused on short-term cost and political will to combat climate change ebbs. This is despite scientists' findings linking human activity to record-breaking temperatures, extreme weather, and other extreme events.

Last week, the European Union proposed for the first-time an EU climate goal that would allow countries to use credits of carbon from developing nations in order to reach a small portion of their emission goals.

(source: Reuters)