CBAM reshapes Brazilian steel and aluminum exports to Europe as emissions rules tighten

Brazilian steel and aluminum exporters are accelerating efforts to measure, verify, and certify emissions as the EU's Carbon Border Adjustment Mechanism (CBAM) begins to influence trade contracts and sourcing decisions. The article reports that aluminum billet exports to Europe fell 43.9% in the first half of 2026, while slab steel shipments rose 283.7% as European buyers seek lower-carbon semi-finished material. Brazil's clean energy matrix offers a potential advantage, but without verified data and international certification, exporters risk losing that edge. The piece highlights that CBAM is no longer a future regulatory risk but a present commercial factor affecting pricing and competitiveness. Companies unable to prove lower emissions may default to conservative values, reducing the benefit of Brazil's renewable-heavy grid. A domestic carbon market is expected to launch by 2030, but CBAM is already reshaping trade flows now. The article is based on Fastmarkets data and includes commentary from WayCarbon's climate risk coordinator.