Haddad says new PAC will be greener – 07/14/2023 – Market

The Minister of Finance, Fernando Haddad, said this Thursday (13th) that the new PAC (Growth Acceleration Program) will pay attention to the environmental issue and “will be greener than that of 15 years ago”. The government of President Luiz Inácio Lula da Silva (PT) works with the estimate of launching around 2,000 works, between federal and state undertakings.

“I understand that all ministries will have to adapt”, said Haddad in an interview with journalist Kennedy Alencar, from Rede TV!.

The Ecological Transition Plan prepared by a team from the Ministry of Finance is ready and has already been presented to the president. According to the minister, Lula said that the presentation was not of a plan, but of another country.

The team assembled by Haddad mapped opportunities for the ecological transition and started a debate with the other ministries to “test adherence” and the possibility of approval by the government.

As examples of issues that need to be addressed in the transition, Haddad cited a regulatory framework for mining in rare earths, a term used to refer to the fact that ores are spread across the entire planet in relatively low concentrations.

“Latin America is very rich in rare earths”, said Haddad.

Another adjustment need cited by him is related to agriculture and livestock, so that these sectors do not lose market in the face of new ecological requirements.

The minister also discussed the integration of wind and solar energy production with electricity in the Brazilian energy matrix; the possibility of selling green steel to the Chinese and the organization of the carbon credit market.

The plan is expected to be implemented over the four years of the Lula government, starting with structural measures at first and, later, with developments such as regulations, in the coming years.

“We’re going to reap the rewards, if it’s up to us, for decades,” he said.

Praising Lula’s diplomatic posture in the world, Haddad stated that the fact that the president opened doors is a great Brazilian advantage that needs to be valued by businessmen, as it makes it possible to reconnect with the world.

“This could put Brazil on a level of attracting investment that has not been seen for a long time”, he opined.

Haddad also defended changes in education, with emphasis on training in non-polluting areas such as the digital economy and culture

CONSUMPTION AND GREEN ECONOMY

For the minister, everything goes through education about a new way of living. “There are frontiers of the new economy that are not polluting,” he said. As an example, he cited the production of books, which can be digital.

He defended a broad debate on consumption, circular economy, recycling, sanitation, landfills and electric vehicles, for example.

Still on the issue of consumption, the minister revealed that Lula had not yet spoken to him about the proposal to reduce taxes on white line appliances. The conversation should take place this Friday (14).

Haddad attributed the difficulty in buying appliances to the high interest rate. He said that whoever buys a refrigerator, for example, pays 20% real interest, which does not fit in the consumer’s pocket.

With regard to interest rates, the minister said he considered that there was no longer any discussion of when the cuts made by the Central Bank would be made, but rather what their magnitude would be, stating that there was room for a reduction in the Selic rate of more than 0.25 percentage points.

The basic interest rate is currently at 13.75% and the BC indicated in the minutes of its last meeting that it should reduce it as early as August, provided that until then the scenario of cooling inflation is maintained.

“It’s everyone’s expectation at this point, 100% of analysts expect a cut. Now the problem is no longer when (the cut will be made), but how much”.