CantorCO2e Ltd., a subsidiary of Cantor Fitzgerald, L.P., a leading global provider of financial services to the world’s environmental and energy markets, has facilited a groundbreaking transaction involving the first Biomass Clean Development Mechanism Project in Chile.
The multi-million dollar transaction involving contracts between Arauco, the largest forestry company in Latin America, and Tokyo Electric Power Company (TEPCO), one of the world’s leading electricity generation companies in Japan, will see Arauco sell emissions reductions created from the Biomass project to TEPCO.
The transaction will result in the creation of energy through the burning of wood waste which will then be dispatched to the Chilean electricity grid, thereby reducing CO2 and methane emissions by 500,000 ton of CO2 equivalent while using the latest and cleanest technology available. Much of the biomass will come from Arauco’s own pine plantations – none of it is taken from native forest, of which Arauco owns 400,000 hectares.
CantorCO2e is the broker, having been instrumental in developing the methodology, validation, registration and verification for the project.
The project is one of the largest Clean Development Mechanism (CDM) projects involving biomass to have been agreed under the provisions of the Kyoto Protocol.
Although this project is substantial in size, biomass accounts for only 1.5% of power transmitted on the Chilean Power Grid.
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