Brazil's oil sale plans prompt fears of global fossil fuel extraction race

The government proposal to give tax relief for offshore oil would increase emissions and contradicts the nation’s progressive stance in Bonn.

Brazil is planning a fire-sale of its oil resources before shrinking global carbon budgets push down demand and prices, environmental groups have warned.

The focus of concern is a government proposal for up to $300bn in tax relief to companies that develop offshore oilfields that opponents claim would use up 7% of humanity’s emission budget if global warming is to be kept below 2C.

Climate Observatory, WWF, Greenpeace and other groups say the subsidies could spark a get-it-out-of-the-ground race with fossil fuel rivals such as the US, Saudi Arabia, Russia, Norway and the UK.