Brazil warns EU about discriminatory carbon tax plan

The Brazilian government alerted the European Union (EU) about potential discrimination, protectionist bias, and violation of international rules in the carbon tax project at the border that Brussels intends to implement beginning in 2023.

Itamaraty filed the Brazilian position on the 18th of June in the public consultation opened by the Europeans on its proposal for the Carbon Border Adjustment Mechanism (CBAM),  a law which it plans to apply to imports from countries with less strict environmental rules.

The initial list is aimed at imports of steel, cement, aluminum, fertilizers, and electricity, but will later be expanded to other sectors. The tax on imported products will change depending on the carbon intensity of production.

In the case of Brazil, steel and iron exports are the most vulnerable. According to an estimate by the United Nations Conference on Trade and Development (UNCTAD), Brazilian steel could be subject to a rate of US$ 3.3 per ton, in the case of India it would be US$ 12, and in the case of Kazakhstan, around US$ 17, increasing the cost of the exporter.

The EU is moving ahead with its unilateral carbon tax, and concern has been widespread due to the potential for conflict it can generate. On November 18th, the last day of the public consultation, there were around 190 reactions from governments, industries, academia, etc.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/brasil/noticia/2021/11/22/brasil-alerta-ue-sobre-discriminacao-no-plano-de-taxa-carbono.ghtml

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