Market and Potential of Small Hydro Power Plant’s Certified Emission Reductions in Brazil

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Abstract:

The Kyoto Protocol proposes the use of market instruments to meet the goals of reducing greenhouse gas emissions in the countries that signed it. One such instrument introducing carbon trading is the clean development mechanism (CDM). Transactions based on certified emission reduction units (CERs) tend to increase the attractiveness of a project because they increase the internal rate of return. This paper aims to survey projects and determine the potential for CDM as it relates to small hydro power (SHP) in Brazil, analyzing the economic growth in these endeavors if they sold CERs. Data for CDM projects were found in the database of the United Nations Framework Convention on Climate Change (UNFCCC), and the projects used were obtained from the National Agency of Electric Energy and a geo-referenced information system of the power sector. The CERs were calculated for a period of 21 years based on UNFCCC methodologies. The theoretical potential of CERs for SHPs in Brazil that have not started construction exceeds 340 million tonne carbon dioxide equivalent over the next 21 years.

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Periodical:

Advanced Materials Research (Volumes 1073-1076)

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2784-2787

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December 2014

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© 2015 Trans Tech Publications Ltd. All Rights Reserved

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