Voluntary Cancellation of CERs: a private sector perspective LACCF Bogotá 2014 Isabela Aroeira | Offset Manager

CDM Board Possibility to create new demand for CDM offset credits Brazil Possibility to compensate big international events through public calls: Rio +20 FIFA World Cup DIFFERENT PERSPECTIVES ON CER’s VOLUNTARY CANCELLATION Private Sector The action is aligned to the company values and beliefs: Brand name figuring among the “official CER’s Donors to offset GHG during the 2014 Soccer World Cup” Usage of the “Selo Sustentabilidade Baixo Carbono”

COMPLIANCE X VOLUNTARY CANCELLATION Higher volumes of transacted credits; Prices determined according to credits supply and demand. Smaller quantities of credits are transacted; (Less than 0,5% of total CDM issuance) Prices determined according to “co-benefits” delivered by project activities; Process have to be fast, transparent and less bureaucratic.

VOLUNTARY CANCELLATION BY HOST PARTY (CERs/tCERs/lCERs) 2 nd BRAZIL (17%) 1 st CHINA (36%) 1 st CHINA (36%) 3 rd ARGENTINA (12%) 3 rd ARGENTINA (12%) 2 nd FUGITIVE EMISSIONS (10%) 1 st AFFORESTATION AND REFORESTATION (59%) 1 st AFFORESTATION AND REFORESTATION (59%) 3 rd HYDRO (10%) VOLUNTARY CANCELLATION BY PROJECT TYPE (CERs/tCERs/lCERs) CER’s VOLUNTARY CANCELLATION – NUMBERS 2 nd Q / 2014

HOW TO CANCEL CER’s? PARTNERSHIP AGREEMENT (MMA AND COMPANY) SEARCH FOR BRAZILIAN CER’s PRICE NEGOTIATION SMALLER DEMAND, HIGHER PRICES CANCELLATION BY PROJECT OWNER TEXT: PURPOSE/BENEFICIAR Y OF CANCELATION…

AMIGO DO CLIMA - PROGRAM AND PREMISSES Selected high quality carbon credits; – Industrial gas offset projects and large hydro – questionable environmental integrity – tCERs – how can a temporary offset deliver permanent benefits? Possibility to combine carbon projects (different standards, project activities…) to compensate one action; Traceable, transparent, auditable system.

Private sector demand faster and transparent operations; The co-benefits of the project add value for voluntary compensation (SD Tool); Voluntary cancellation initiatives are growing and have an important role on todays scenario, enhancing carbon transactions. LESSONS

Obrigada! Isabela Aroeira | Offset Manager +55 (31) (31)