News

15/06/23

The topic was discussed during a meeting between the president of IBRAM and its members.

In October this year, the European Union (EU) will begin the gradual implementation of a carbon adjustment mechanism at borders (MACF), called a “carbon tax”, which will impact Brazilian industry. The theme was debated by members of the Brazilian Mining Institute (IBRAM) and guests, on the morning of this Thursday (06/15). The virtual event is part of a series of periodic debates, the “Meeting with the President”, conducted by IBRAM’s CEO, Raul Jungmann.

“It is an extremely sensitive issue for the entire sector and for the Brazilian economy. European Union regulations impact decarbonization, which is essential for the transition to a low-carbon economy and for overcoming a possible climate crisis that threatens all of our humanity,” said Jungmann.

Ambassador Rubens Barbosa also participated and explained that the MACF is a mechanism to equalize the carbon emission control of European products subject to the European Union’s emissions trading system, with products imported from countries that do not have the same type of control. . Initially, this policy is applicable to the iron, steel, cement, fertilizer, aluminum, hydrogen and energy industries.

“This policy aims to avoid the transfer of factories to other countries that do not have this requirement to reduce carbon emissions. In addition, it seeks to avoid the loss of competitiveness of European products and encourage countries like Brazil to reduce their emissions and achieve greater competitiveness in the European market”, emphasized Barbosa.

Lawyer Fernando Sabino evaluated the consequences of the MACF on the country’s exports. For him, “Brazilian industry will have to adapt in order not to lose competitiveness in the European market, which could generate additional costs, but also opportunities, since Brazil is in a better condition than many other countries that will be able to compete with us”, he said. .

He also pointed out that “the Brazilian market needs to be prepared to present information on the quantities of greenhouse gases linked to products, which makes it possible for European importers to have this data and, when necessary, offset emissions”.