In December 2015, 195 countries gathered to create the Paris Agreement, around the commitment to contain global warming within 2° C, with efforts to ensure that it does not exceed 1.5° C by the end of this century. Therefore, the Brazilian Coalition on Climate, Forests and Agriculture – a multisectoral movement consisting of more than 120 companies, business associations, civil society organizations and research centers – has commissioned multidisciplinary teams from the Choices Institute and the Center for Sustainability Studies of the Getúlio Vargas Foundation (GVces) to construct scenarios of the Brazilian reality that encompass the three major commitments listed by Brazil in its NDC.
This cover document presents a study, developed by the Instituto Escolhas, on the adoption of an alternative of
US$36/tCO2 e as a Carbon Tax levied on fossil fuels in Brazil, focusing on maintaining a neutral tax burden. This neutrality is obtained by means of simplification of one of the most complex taxes that exists in the country, widely known by its acronym of PIS-Cofins, which has been the object of simplification plans proposed by the Executive and Legislative branches of Government.