By Mauro Reis

An agreement signed between the World Bank and the steel company Plantar S/A last September aims to reduce carbon emissions by substituting mineral charcoal with wood charcoal from certified sustainably managed eucalyptus plantations in its steel production process.

Plantar S/A, which is based in the Brazilian state of Minas Gerais, will reduce its emissions of carbon dioxide and methane by about 13 million tons, for which it will earn carbon credits that can be sold in the market. The Bank's Carbon Prototype Fund will buy credits from Plantar to the value of US$5.3 million over seven years.