Posted on 20 Dec 2024
The Brazilian steel industry requires an estimated R$180 billion in decarbonization investments to achieve its 2050 carbon neutrality goal. Unlike the EU, where government support aids decarbonization, Brazilian steelmakers face significant challenges without subsidies.
Currently, the steel sector emits 1.7 tons of CO2 per ton of crude steel, relatively low due to Brazil’s renewable energy sources and use of biomass. However, this remains higher than in the US, where electric arc furnaces emit just 0.8 tons of CO2 per ton.
Transitioning to greener technologies like hydrogen-driven direct reduction iron (DRI) will require additional funding. Brazil's newly implemented carbon market regulations will add costs for steelmakers by 2030.
With rising steel imports—92% from China—experts call for measures like carbon border adjustments to protect domestic producers from high-carbon footprint imports. Despite regulatory challenges, Brazil’s 2024 steel imports are expected to reach a record 6.23 million tons, a 24% increase from 2023.
Source:Yieh
