The Confederation of Agriculture and Livestock of Brazil (CNA) published, on Tuesday (31), the study "Global Agendas and the Brazilian Agro – The Mechanism for carbon adjustment at the border of the European Union", (CBAM), to alert the sector about the new European policy.

CBAM aims to measure the carbon footprint in the production process of imported goods and require payment of a border tax as a condition for entering the European Union.

In the study, cna addresses points such as the context of the creation of THE CBAM, the concept, how it should work and how agro can be impacted in the future.

In the evaluation of the entity, it is essential to understand how the measure will work, having, as potential targets, trade in agricultural products. The idea is to contribute to, in the future, avoid trade barriers to Brazilian agricultural products and to subsidize the government with technical basis on the new European mechanism.

CBAM integrates the strategies of the European Ecological Pact to stimulate the economic growth of the block based on decarbonization. The focus is to achieve a 55% reduction in greenhouse gas (GHG) emissions by 2030, based on 1990 levels, and the emissions neutrality target by 2050.

CNA also points out that even if agro products are not included in the preliminary phase of the measure, which should take effect between 2023 and 2025, with the implementation completed from 2026, it is possible to include new products and agro is in danger of being taxed.

The Confederation understands that it is essential to understand how CBAM will work, in addition to evaluating it in the face of international trade rules and the Paris Agreement, in order to protect exports from Brazilian agriculture.

CBAM still needs to be formally approved as regulations in the European Union. To learn more, click here and access the full CNA study.

Source: Notícias Agrícolas