“We cannot fall into a carbon tax trap”, says Campos Neto

The president of the Central Bank, Roberto Campos Neto, criticized the carbon tax, considered a “green tax”, as a way to encourage the reduction of carbon emissions. According to him, with the burden mostly on those who produce, producers may be discouraged.

“We need to make the carbon market work. We cannot fall into a carbon tax trap”, he defended this Friday (12), during an event in Portugal on Sustainable Agribusiness in Brazil, where he participated in the panel on sustainability in the financial world.

Campos Neto also reinforced the assessment that the transition to a greener and more sustainable economic activity will take place between 80% and 90% via private financing. “To think that governments allocate resources better than the market is a mistake”, he said.

“The risk of transitioning from the world before to the world we want seems much harder and harder than before. This transition will be questioned when the price increase starts to affect energy, food”, he added.

For the head of the monetary authority, Brazil is currently going through the third wave of this transition, when society begins to demand that the financial flow be green and sustainable as well.