Public consultation on the National Strategy for Carbon Border Adjustment and Industrial Competitiveness will receive contributions by January 30

The Brazilian Industrial Development Agency (ABDI) and the Ministry of Finance have published Public Consultation No. 002/2025, seeking contributions to develop Brazil’s response strategy to the European Union’s and United Kingdom’s Carbon Border Adjustment Mechanism (EU CBAM[1] and UK CBAM[2], as well as government and industry actions to ensure the competitiveness of Brazilian products in the European and British markets.

The CBAM is a regulatory instrument that seeks to equalize carbon costs between domestic and imported products, requiring imported goods to incorporate the cost of greenhouse gas (GHG) emissions to prevent “carbon leakage” and protect the competitiveness of the local industry.

The EU CBAM and UK CBAM implementations will directly impact Brazilian export sectors such as iron, steel, aluminum, cement, fertilizers, hydrogen, and electricity. Therefore, contributing to this consultation will be strategically important to steer the criteria, guidelines, and instruments of Brazil’s response to the CBAM and mitigate risks to competitiveness, considering the development of the Brazilian Emissions Trading System (SBCE) and the specificities of the exposed sectors.

Participants will contribute, among other things, to identifying sectoral and regional impacts, costs, and competitiveness gains, measurement, reporting, and verification (MRV) requirements, and interoperability with carbon markets.

In summary, the consultation aims to systematize technical knowledge, organize sectoral positions, and foster political convergence on responses to the EU’s CBAM and the UK’s CBAM.

To contribute, please visit Public Consultation No. 002/2025 by January 30, 2026.

Demarest’s Environmental, International Trade and Customs, and ESG teams are available to provide any further clarifications that may be necessary.

[1] Required from January 2026.

[2] Ongoing implementation.