EU carbon taxation will not impact Brazil’s footwear exports

Although about 20% of its exports are destined to countries in the European Union (EU), the Brazilian footwear sector does not expect the bloc’s plan to tax carbon on imported products to have an impact on sales to the region.

This Wednesday, July 14, the EU launched a comprehensive plan to combat climate change and decarbonize its economy via a set of measures that includes a carbon tax on imported products. The carbon tax on imports aims to protect the region’s industries from foreign competitors that are not subject to the same environmental standards.

“The measure does not impact us initially. They will start with homogeneous product sectors where there is a risk of carbon leakage”, says the association representing the sector, ABICALÇADOS, through its communication team.

ABICALÇADOS points out that there is a list that was published by the EU in 2019 showing sectors considered at risk of carbon leakage from 2021 to 2030. These sectors will be prioritized in the carbon adjustment mechanism at the border. “They initially selected from this list: cement, electricity, fertilizers, iron, steel, and aluminum. In fact, shoes aren’t even on that list of carbon leakage risk until 2030.”

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/empresas/noticia/2021/07/14/abicalcados-taxacao-de-carbono-pela-ue-nao-impact-exportacoes-do-setor.ghtml

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