Oil report

Brazilian state of Tocantins taps Mercuria to sell carbon credits

SAO PAULO, Oct 20 (Reuters) - The Brazilian state of Tocantins has selected Geneva-based Mercuria Energy Trading for the sale of up to 200 million tonnes of jurisdictional carbon credits generated from 2016 to 2032, the state announced late on Wednesday.

Mercuria, one of the world’s largest commodities and energy trading firms, with operations in 50 countries and annual revenue of $130 billion last year, has operated in carbon markets since 2008, according to its website.

Other firms that participated in the process have three days to appeal the decision. State environment official Marli Santos said once the partnership is signed, Tocantins will discuss with Mercuria which standard should be used to register the credits.

Tocantins is weighing whether to use Verra’s Jurisdictional and Nested REDD+ (JNR) standard or ART’s TREES. The credits will be held by a specific purpose company to be created.

If concluded, Santos said the transaction could bring up to $2 billion to the Brazilian state, which would be the first to sell jurisdictional carbon credits in the voluntary market. (Reporting by Tatiana Bautzer in Sao Paulo)