Brazilian aluminium and steel exporters are stepping up efforts to measure, verify and certify product emissions as the European Union’s Carbon Border Adjustment Mechanism (CBAM) begins to influence trade with Europe. What was initially viewed as a future compliance requirement is now affecting pricing, contracts and sourcing decisions, particularly for companies supplying the European market.
According to Rafael Della Barba, climate risk and decarbonisation coordinator at WayCarbon, Brazilian exporters have responded differently to the new framework. Some steel producers started preparing in 2023, well before mandatory compliance, while others postponed investments and are now working to understand their emissions exposure.
Under CBAM, exporters must calculate emissions at the individual product level, covering production routes, traceability and auditable data. This requires companies to move beyond traditional corporate emissions inventories. Those unable to demonstrate lower emissions may have to rely on default emission values, reducing the advantage of Brazil’s relatively clean energy matrix.