Panel SA: Chemical industry complains about Bolsonaro and wants incentive for the use of hydrogen

The national chemical industry wants Lula to implement his recovery plan to recover the loss of competitiveness registered in recent years.

The president of Abiquim (Brazilian Association of the Chemical Industry), André Passos Cordeiro, told the column that the sector should close with a deficit of almost US$ 60 billion in the trade balance (more imports than exports).

“This difference was US$ 20 billion in 2019, it reached US$ 30 billion in 2020, and we will double this year due to the policy of reducing import tariffs,” he said.

For him, this mismatch was due to the import tax reduction policy which, instead of stimulating competition with foreigners, took more of the domestic industry market.

Cordeiro is going to present an overview of the sector and the main points on the sector’s agenda to authorities and investors this Thursday (8), in São Paulo. Governor-elect Tarcísio de Freitas was invited.

The companies defend tax reform and the approval of a legal framework for the use of hydrogen as an industry input —which they consider to be less polluting and more efficient.

“However, it needs encouragement [fiscal] to develop,” said Cordeiro. “It’s like solar and wind energy.”

In addition, they want the approval of a law that creates the rules for the carbon market in the country, a form of compensation for those who invest in clean energy. They also want the regulation of the Novo Mercado de Gás, even though they know that, with the PT in charge, Petrobras can once again have more strength in this market.

“Without regulation, there is no way investments in pipelines can occur and today we are losing more than half of the gas extracted in the country because there is no way to distribute them.”

Julio Wiziack (interim) with Paulo Ricardo Martins and Diego Felix