1. Themes
  2. Concessional Finance
  3. Levies on High-emitting Activities

Levies on High-emitting Activities

Levies on high-emitting activities, such as maritime shipping and fossil fuels, can raise funds for climate finance.

2030 Goals

01

Develop and implement national-level levy mechanisms directly targeting high GHG emitters (e.g., industry, energy, transport), with emissions monitoring as a prerequisite.

02

Integrate levy revenues into dedicated climate funds supporting adaptation and emission-reduction programs.

03

Build the institutional capacity for emissions-based tax accounting, linked to Brazil’s MRV (Monitoring, Reporting, and Verification) systems.

04

Encourage subnational initiatives with emission-based charges, especially in urban areas and emission-intensive corridors.

Status

No Progress

Brazil does not currently implement any direct levy on GHG emissions that raises funds for climate finance.

Leading Actors

Cooperation is required between these actors and audiences to drive progress foward in Levies on High-emitting Activities.

Multilateral Development Banks

Inter-American Development Bank (IDB)

Multilateral Development Banks

World Bank

International Organizations

World Trade Organization (WTO)

International Organizations

United Nations Framework Convention on Climate Change (UNFCCC)

International Organizations

Intergovernmental Panel on Climate Change

International Organizations

Organization for Economic Cooperation and Development (OECD)

Ministries

Ministry of Finance (MF)

Ministries

Ministry of Environment and Climate Change (MMA)

Ministries

Minstry of Planning and Budget (MPO)

Other Governmental Organizations

Interministerial Committee on Climate Change and Green Growth (CIMV)

Other Governmental Organizations

Brazilian Institute of Geography and Statistics (IBGE)

Other Governmental Organizations

Federal Revenue Secretariat (Receita Federal)

Other Governmental Organizations

Federal Attorney General's Office (AGU)

Supportive Stakeholders

Observatório do Clima

Supportive Stakeholders

Instituto do Clima e Sociedade (iCS)

Supportive Stakeholders

Conselho Empresarial de Desenvolvimento Sustentável (CEBDS)

Key Milestones

Showcasing the key reform milestones for Levies on High-emitting Activities that have been addressed at global events.

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Brazil

Brazilian Sustainable Taxonomy announcement

View Event
  • Levies on High-emitting Activities

    Develop comprehensive emissions monitoring and verification systems beyond the Emissions Trading System to support accurate, fair, and enforceable emissions-based levies

  • Subsidy Reform

    Improve data systems to evaluate subsidy effectiveness and climate impacts with reliable evidence

India (city TBC)

18th BRICS Summit - BRICS Leaders’ Summit

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  • Levies on High-emitting Activities

    Publish annual MRV progress in national climate and fiscal reports to strengthen transparency and investor confidence

  • Subsidy Reform

    Phase out fossil fuel subsidies for diesel and natural gas, aligning fiscal policy with long-term climate objectives

TBC

Sustainable Finance Policy Conference 2026

View Event
  • Levies on High-emitting Activities

    Introduce fiscal instruments that directly or proportionally tax GHG emissions, closing the current regulatory gap in aligning pricing mechanisms with emission intensity

  • Nationally Determined Contribution

    Discuss the implementation of energy efficiency and fuel-switching measures in transport and industry to stay within Brazil’s allocated carbon budget.

Brazil

Brazilian Presidential Elections

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  • Levies on High-emitting Activities

    Engage Congress, subnational governments, and sectoral associations in consultations to refine proportional taxation models

  • Subsidy Reform

    Strengthen inter-ministerial coordination to implement integrated subsidy reform strategies

Learn More

Publications and educational material to deepen understanding of Levies on High-emitting Activities.

Brazil Adopts a Cap and Trade System

Levies on High-emitting Activities

Announcement of Brazil’s adoption of a national cap-and-trade system to regulate carbon emissions.

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O que é o Programa Mover

Levies on High-emitting Activities

Overview of Programa Mover, a federal initiative to promote industrial innovation, decarbonization, and sustainability through fiscal incentives.

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ICMS Ambiental

Levies on High-emitting Activities

Explanation of the ICMS Ambiental, a mechanism that allocates part of state tax revenue to municipalities based on environmental criteria.

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