Study designed by the Escolhas Institute Coordination: Ligia Vasconcellos and Shigueo Watanabe Jr., (Escolhas Institute) Elaboration: William Wills (EOS Strategy & Sustainability).
This study seeks to understand the impact of different scenarios of electricity generation on an economy, employment and GHG emissions in the country. These scenarios were developed by the Energy Scenarios Platform (PCE), organized by the Avina Foundation, which selected four scenarios of nationally renowned institutions to elaborate long-term national electricity planning, based on a set of premises and common information. Scenarios are geared towards goal setting. 3. The main objective is therefore to analyze their priorities as their respective advantages and disadvantages with the main objective of their macroeconomic, social and environmental impacts.
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.