Carbon tax in major economies puts pressure on Brazil

The great economic powers are accelerating plans to reduce greenhouse gas emissions, with a clear message to emerging countries such as Brazil that they will either do the same or they will pay the price with fewer exports. Climate policies will more and more be used in trade to simultaneously protect domestic production and pressure partners to reduce their own emissions.

On July 14, the European Union (EU) presented its “climate revolution” to decarbonize the economy – from electricity generation, car production, housing heating, air and maritime transport, and agriculture. It also announced the creation of a border carbon tax.

Democratic senators have proposed taxing imports of more polluting products to help pay for the government’s new $3.5 trillion spending package in the US. What the US does will have a global impact, but Democrats have not said how that tax will be imposed. A draft mechanism has already been adopted in California for some electricity imports. Canada and Japan are planning a similar type of initiative.

In turn, China is launching the world’s largest carbon market, where rights to pollute will be traded, initially involving 2,225 Chinese companies. China is the largest trading nation in the world (sum of exports and imports) and its products are the most vulnerable to pollution by partners.

Source: Valor Econômico

To read the full original article, visit the link:

https://valor.globo.com/mundo/noticia/2021/07/16/taxa-de-carbono-nas-principais-economias-coloca-pressao-no-brasil.ghtml

Sharing is caring!