Business

New EU taxes could force Brazil into the global carbon market

Brazilian industrialists are concerned that taxes on exports will hit steel and iron, but the moves could lead the country to making good on its huge carbon credit potential

carbon market Demonstration during the Global Youth Climate Strike Rally and March in downtown San Francisco. Photo: Sundry Photography/Shutterstock
Demonstration during the Global Youth Climate Strike Rally and March in downtown San Francisco.Photo: Sundry Photography/Shutterstock

When the European Commission formally launched a set of measures to reduce carbon emissions in the bloc last July, Brazilian industry immediately declared the move extremely worrying for the country. Indeed, the measures include the creation of a carbon tax on some imported products, which would impact Brazilian steel exports. However, one upshot may be that the move bolsters Brazil’s position on the global carbon market.

The main goal of the EU Green Deal, so-named by the commission’s president, Ursula von der Leyen, is to reduce the bloc’s greenhouse gases by 55 percent by 2030. For that, 13 bills...

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