eng_guiaprecificacao_web-1-652233be01f28095.pdf
Summary
The document provides a comprehensive analysis of carbon pricing mechanisms, specifically carbon taxes and emissions trading systems (ETS), within the Brazilian context. It evaluates international experiences, such as the EU ETS, to demonstrate that while short-term costs increase, long-term benefits include fostered innovation and business growth. The report details various macroeconomic studies on Brazil, suggesting that the negative impacts of emission restrictions can be minimized through revenue recycling and technological progress. It emphasizes the importance of Monitoring, Reporting, and Verification (MRV) and recommends that the Brazilian government establish a transparent climate governance structure. For companies, it suggests incorporating climate change into corporate strategy and adopting internal carbon pricing as a risk management tool.
Key insights
- Carbon pricing is expanding globally; as of mid-2016, 64 international jurisdictions were using carbon taxes or emissions trading systems, covering approximately 13% of global greenhouse gas emissions.
- The Paris Agreement's Article 6 allows for international cooperation through market mechanisms, including the international transfer of mitigation outcomes (ITMOs) and the creation of a Sustainable Development Mechanism (SDM).
- Brazil's Nationally Determined Contribution (NDC) commits to reducing GHG emissions by 37% by 2025 and 43% by 2030 compared to 2005 levels, and it considers the use of market mechanisms.
- International evidence, particularly from the EU ETS, suggests that carbon pricing can positively affect production, employment, and investment for regulated companies compared to non-regulated ones.
- Macroeconomic simulations for Brazil indicate that carbon pricing is more cost-effective than command-and-control policies, and that negative impacts on GDP and employment can be minimized through technological progress and revenue recycling, such as subsidizing consumption or income.
- The impact of carbon pricing on a specific sector depends on its carbon intensity, marginal mitigation costs, demand price elasticity, and degree of exposure to international competition.
- To prevent 'carbon leakage'—the relocation of production to regions with lenient restrictions—the report suggests using compensatory mechanisms like free allocation of permits, tax exemptions, or border carbon adjustments (BCA).
- Internal carbon pricing is increasingly used by global corporations as a risk management tool; in 2016, 517 global corporations had adopted this strategy, with Brazil showing a 74% increase in adoption.
- The report recommends that Brazil's carbon pricing design prioritize tax neutrality, where revenues from carbon taxes are used to reduce other burdens, particularly on labor, to avoid increasing the overall fiscal load.
Cite the original document
- APA
- da Motta, R. S. (n.d.). eng_guiaprecificacao_web-1-652233be01f28095.pdf. We Mean Business Coalition. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2017/08/ENG_GuiaPrecificacao_WEB-1.pdf
- Chicago
- da Motta, Ronaldo Seroa. eng_guiaprecificacao_web-1-652233be01f28095.pdf. We Mean Business Coalition, n.d. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2017/08/ENG_GuiaPrecificacao_WEB-1.pdf.
- Wikipedia
- {{cite report |last1=da Motta |first1=Ronaldo Seroa |title=eng_guiaprecificacao_web-1-652233be01f28095.pdf |publisher=We Mean Business Coalition |url=https://www.wemeanbusinesscoalition.org/wp-content/uploads/2017/08/ENG_GuiaPrecificacao_WEB-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{damottandengguiaprecificacaoweb1652233be01f28095pdf, author = {da Motta, Ronaldo Seroa}, title = {{eng\_guiaprecificacao\_web-1-652233be01f28095.pdf}}, institution = {We Mean Business Coalition}, url = {https://www.wemeanbusinesscoalition.org/wp-content/uploads/2017/08/ENG_GuiaPrecificacao_WEB-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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