The world is moving towards a low carbon economy to fight global warming caused by increases in anthropogenic emissions of greenhouse gases (GHGs). The carbon market beckons as a promising opportunity for Brazil through Clean Development Mechanism (CDM) projects, which result in Certified Emission Reductions (CERs). Although Brazil is responsible for about 7% of all CDM projects in the world, there is still no specific tax regulation for CERs, thus hindering the development of carbon market in Brazil. It is essential to have a consistent internal framework that ensures potential investors a minimum security on the legal and fiscal operations with CERs. There are cases of institutions linked to the Government which consider the current legislation and that, in light of the various bills pending in Congress, are not definitive. Such bills have different understandings of the legal classification of CERs and the related tax treatment. This article claims for an urgent need to issue a regulatory tax for CERs, proposing to eliminate taxes on transactions involving CERs, to encourage the effective development of carbon markets in Brazil, aiming for a greener low carbon economy.
展开▼
