OECD calls Brazil for global plan on carbon price

The Organization for Economic Cooperation and Development (OECD) invited Brazil to participate in a global plan that is consolidating the price of carbon to avoid trade wars amid the decarbonization of economies, as reported by Valor Econômico.

The carbon price is considered an efficient means of taxing polluters for the carbon they emit. The question is to determine what that price should be and to establish a global solution.

OECD Secretary-General Mathias Cormann sent a letter to Economy Minister Paulo Guedes, explaining that his idea is for a group of countries to start working on carbon price mapping, examine its impact, and try to avoid the multiplication of unilateral measures.

The plan is to gradually attract countries to discussions that could lead to an understanding on a voluntary basis about the best carbon tax and other environmental measures. This could later become a global agreement, along the lines that led to the international agreement to tax multinational companies more with the support of 136 nations, thus well beyond the entity’s 38 members.

The Brazilian government has not yet responded, but initial reactions in Brasilia seem positive, amid concerns about the unilateral “carbon adjustment mechanism at the borders” announced by the European Union (EU) on July 14th. Through it, Brussels will set a carbon price for imports of iron and steel, aluminum, cement, electricity, and fertilizers. The idea is to avoid polluting industries moving to countries where standards are less stringent and CO2 emissions are not taxed.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/brasil/noticia/2021/10/26/ocde-chama-brasil-para-plano-global-sobre-preco-do-carbono.ghtml

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