Brazil Mulling Tax Breaks for Low-Carbon Projects, Minister Says

  • Country developing plan to finance environmental efforts
  • Proposal to fight global warming to be announced in Morocco

Brazil is developing a plan to pay for its fight against global warming.

The country expects to present the plan at a November climate conference in Morocco, according to Secretary for Climate Change Everton Lucero. The effort may include incentives for low-carbon activities needed to meet Brazil’s climate pledges under the global pact signed in Paris in December.

“Financing is the biggest challenge, so we need to identify which tools are needed to provide resources for our projects,” Lucero said in a telephone interview from Brasilia. “We can create, for example, differential taxes, without increasing the tax burden.”

Brazil’s President Michel Temer ratified on Monday the United Nations climate pact, becoming the third nation among the world’s top 10 polluters to sign up. Brazil pledged to reducing carbon emissions 37 percent by 2025 compared to 2005.

The country’s proposal will focus on farming, energy and forestry, which account for 80 percent of Brazil’s emissions, according to Lucero. The proposal will be opened for public consultation for about six months and the final plan will be ready in the second half of next year.