🚢 Brazil’s shipping emissions tax battle

Hello! Welcome to another edition of the Brazil Climate newsletter! This week, how Brazil is teaming up with China, Indonesia and others to oppose a flat tax on maritime emissions — and the opportunity that decarbonization debates could open up for Brazilian biofuels.

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Taxing ship emissions? Brazil & Co. say no

Brazil, China, Indonesia, Saudi Arabia and others have joined forces to take on a common adversary: a proposed universal flat tax on greenhouse gas emissions from large ships, currently under discussion at the International Maritime Organization (IMO).

European nations argue that the levy is essential to curb emissions and fund climate change mitigation, particularly in poorer countries. The IMO has set ambitious targets for reducing emissions from maritime fuels, aiming for net-zero emissions in international shipping by 2050.

But critics say the proposal would disproportionately harm major exporters from the Global South, exacerbating economic inequalities. Brazil, for example, has countered with a plan that would tax emissions only beyond a certain threshold and operate under a credit system.

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