Finland and Brazil signed a Memorandum of Understanding on cooperation in the field of Clean Development Mechanism

Ministry for Foreign Affairs of Finland Press release 174/2007 10 September, 2007

Finland signed a Memorandum of Understanding on cooperation in the field of Clean Development Mechanism, DCM, with Brazil. The MoU was signed on 10 September, in connection with the visit of President of Brazil Luis Inácio Lula da Silva. On Finland's behalf, the MoU was signed by Minister for Foreign Trade and Development Paavo Väyrynen and on Brazil's behalf by Foreign Minister Celso Amorim.

CDM is a flexibility mechanism developed under the Kyoto Protocol. In the Clean Development Mechanism an industrialised country with an emission reduction target set by the Kyoto Protocol implements a project in a developing country with no binding reduction target. The goal of the mechanism is to promote sustainable development in developing countries and to offer industrialised countries cost-effective means by which to reduce emissions. Typically, the CDM projects are carried out in the fields of renewable energy, energy efficiency or waste management. 37 per cent of the CDM projects registered by the present day are located in Latin America. Brazil is a CDM market leader together with China and India.

During the commitment period 2008-2012, Finland's Kyoto Protocol target is to reduce the emissions to the level of 1990. In accordance with the National Energy and Climate Strategy of 2005, Finland will acquire 10 million tons of emission credits during 2008-2012 by using the flexibility mechanisms. Some of the required emission reductions Finland will implement with help of Clean Development Mechanism projects.

The goal of the MoU is to promote exchange of information and cooperation in the field of climate policy – the Clean Development Mechanism in particular – and to strengthen the connections between the authorities of the countries involved. For this purpose, a task force will be established between Finland and Brazil.

Additional information: Senior Adviser Karoliina Anttonen, Unit for International Environmental Policy, Ministry for Foreign Affairs, tel. +358 400 876 512