On December 12, 2006, the Brazilian ministry of science and technology unveiled a us $37-million scheme to fund initiatives aimed at reducing carbon emissions. The scheme would help Brazil benefit from Kyoto Protocol's clean development mechanism (cdm). It has been estimated that between 2006 and 2012 the total carbon credit market in Brazil will be worth us $1 billion.

The scheme offers loans to support research on viability of cdm projects and finance implementation of technologies that help reduce greenhouse gases. Projects must cost at least us $233,000. Research and Projects Financing, an agency linked to the science ministry, will cover 90 per cent of the costs. Companies will have to repay loans in 10 years. The scheme will run till 2009.

The scheme also offers to cover up to half the cost of projects carried out by medium and large companies in partnership with scientific and technological institutions. Proposals must relate to new technologies or research on emissions monitoring and assessment, with a minimum cost of us $140,000. Projects must finish in two years.