In a note, civil society organizations call for incentives for the energy transition, and show that the path lies in Tax Reform

Several organizations that work in socioenvironmental defense published a note of positioning to the Brazilian government showing that it is possible to direct incentives to a just energy transition through Tax Reform. If approved, the measure will transform the regimes that benefit the oil and gas sector in Brazil. This means that a large part of the subsidies allocated to this sector will undergo a change.

As stipulated in the Tax Reform, a transition regime is forecast from 2027 to 2033. According to the note, this guarantees the adequate time to implement changes without causing legal or social insecurity for the low-income population and allows the sector to prepare itself for a new tax system aligned with the climate objectives of the just and inclusive energy transition.

Currently, the burning of fossil fuels is the main cause of climate change in the world. Between 2018 and 2022, R$ 246 billion were granted in subsidies for Oil & Gas production, according to data from Inesc (Institute for Socioeconomic Studies). The letter is signed by the Institute for Socioeconomic Studies (Inesc), the Institute of Energy and the Environment (IEMA), the ClimaInfo Institute, the Institute for Consumer Protection, Idec, the Climate Observatory (OC), Oxfam Brasil, the Clean Energy Coalition, the International Institute,, the Pólis Institute, the International Energy Initiative (IEI Brasil), the Talanoa Institute, Brasil, Greenpeace Brasil and The Climate Reality Project Brasil – some of these being partners or supported by iCS.

Read the note of positioning for the end of the fossil fuel subsidies

Civil society organizations call for incentives for the energy transition with the support of Tax Reform. Photo: Disclosure

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