Will Brazil's regulated carbon market let pig iron and steel exporters reduce CBAM costs?
Only once a carbon price is actually paid. Brazil's law creating its emissions trading system phases it in over several years, starting with reporting before any allowance cost. Until a producer pays for its emissions, there is nothing for the EU declarant to deduct.
How the deduction works
Article 9 of the CBAM Regulation lets the declarant deduct the carbon price effectively paid in the country of origin for the embedded emissions, after free allocation and any rebate.
What to do now
- Start the monitoring and reporting the Brazilian system will require; it matches what CBAM needs.
- Keep fuel, reductant and production records per installation.
- When a price applies, keep proof of payment and the share attributable to exported goods.
What Senseible does here
Senseible reads coal, coke, gas and electricity invoices and production records into a dated, fingerprinted record per site, so the direct emissions behind each tonne can be traced to the documents. Emissions factors outside India are entered from the official source and labelled.
Sources: CBAM Regulation (EU) 2023/956, consolidated, European Commission, CBAM legislation and guidance, UNFCCC, national inventory and NDC documents
Last reviewed 2026-10-21.