Posted on 07 Apr 2022
A proposed European Carbon Border Adjustment Mechanism (CBAM) tax could affect Brazil's steel exports. The mechanism was expected to be rolled out in Europe in the next few months. Brazil ranked eighth in the CBAM system. Russia ranked first, followed by China, Turkey, the UK, Ukraine, South Korea, and India.
Brazilian steel is the country's most vulnerable product under the CBAM. Brazilian steel exports could be taxed at US$3.3 a ton.
Gustavo Pinheiro, coordinator of the low carbon economy portfolio at the Institute for Climate and Society (iCS), said the European market would need high-quality and more sophisticated products.
Pinheiro said if Brazil stops exporting steel to Europe because of the CBAM, it could lose the opportunity to produce higher value-added products.
Source:Yieh
