Title: Clean development mechanism projects in the Brazilian wind sector and the carbon market: accounting aspects and relationships between its peculiarities

Authors: Andreza Moura Dos Santos; Márcio Sampaio Pimentel

Addresses: Federal Rural University of Pernambuco, Abel Ferreira da Silva St., Vitória de Santo Antão, PE, 55.608.745, Brazil ' Department of Administration, Federal Rural University of Pernambuco, S/n Dom Manoel de Medeiros St., Recife, PE, 52.171.900, Brazil

Abstract: This study analysed the accounting deal for carbon credit operations of Brazilian companies in the renewable wind energy segment with clean development mechanism (CDM) projects and their particularities. Descriptive, exploratory, and quantitative research was conducted. Multiple correspondence analysis was used to generate clusters and Fisher's exact test was also used. Regarding the accounting deal, the projects show transactions with carbon credits, classifying them as intangible assets. However, it is suggested that credit should be accounted for in a specific account of current assets as a financial instrument. Regarding the relationships between the particularities of the CDM, there is a significant relationship in all themes analysed, except for the information topic. Even though the CDM is a milestone in environmental regulation, it is important to establish public policies to promote tax incentives and specific rules on the accounting treatment of operations with carbon credits.

Keywords: environmental accounting; clean development mechanism; CDM; carbon credit; wind energy.

DOI: 10.1504/IJGENVI.2022.126211

International Journal of Global Environmental Issues, 2022 Vol.21 No.2/3/4, pp.113 - 129

Received: 11 May 2021
Accepted: 29 Sep 2021
Published online: 14 Oct 2022 *

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