“Green CPR” – Decree No. 10,828

Optional

A Rural producers can now issue the so-called “Green CPR” for conservation and recovery of native forests and biomes

B3 is making improvements to its registration and centralized deposit systems, also know “Green CPR”, to facilitate Rural Product Note (CPR) trading in the OTC market and comply with the mandatory product registration.

CPRs may be used by rural producers and other agents in the agribusiness chain to raise funds to finance the conservation of native vegetation patches on their property, as regulated by Decree No. 10,828/21. This is a market that could reach R$30 billion in four years, according to Brazilian government estimates.

Project Tags:

OTC

Completed

Product benefits

Growing market

B3 has enhanced the NoMe platform to meet the “Green CPR” market demands.

Ease for investors

B3’s structure facilitates the connection of CPRs with other capital market trades.

Flexibilityficiência nos processos

The instrument's information can be changed autonomously when the asset characteristics are renegotiated.

Transparency

Easy to query information about issued CPRs via screen, file or API.

'Green CPR' Integrated Registration Service

The bond is yet another investment alternative based on agribusiness.

Decree No. 10,828/21 has regulated the issuance of Rural Product Notes - CPR related to conservation and recovery activities of native forests and their biomes, known as “Green CPR”. These activities were already included in Law No. 8,929/94, which established CPRs in Brazil.

The “Green CPR” can be issued by rural producers, associations and cooperatives. The issuance must be accompanied by a certification confirmed by an external audit or a third party, indicating and specifying the rural products that back it.

Through the “Green CPR”, rural producers are committed to preserving the forests and promoting the recovery of native vegetation, thus generating benefits such as the reduction of greenhouse gas emissions and contributing to environmental preservation.

The Rural Product Note (CPR) is a bond that must be mandatorily registered with a registration entity or central depository authorized by the Central Bank of Brazil and represents the promise of future delivery of an agricultural product. It is issued by rural producers or companies whose purpose is the production, sale and industrialization of rural products, including agricultural cooperatives. Two settlement models are allowed to trade CPRs: physical, whereby settlement takes place upon delivery of the product, and cash settlement with payment upon maturity. Currently, CPR is the main instrument to finance the agribusiness production chain.

The NoMe platform provides infrastructure to the OTC market and comprises registration, deposit, trading, and settlement activities, among others.