Decarbonising to Compete: Towards a Low-Carbon Cement and Steel Industry in Brazil

The report examines the decarbonisation of Brazil's cement and steel sectors, highlighting the role of low-carbon hydrogen, carbon capture and storage, and green finance in achieving net-zero emissions by 2050.

• The cement and steel industries are major contributors to Brazil's greenhouse gas emissions, with cement accounting for approximately 2.5% and steel for 4% of total national GHG emissions.
• Brazil possesses comparative advantages for industrial decarbonisation due to its predominantly renewable energy matrix and a history of using biomass, such as reforested charcoal, in steelmaking.
• Deep decarbonisation depends on emerging technologies including low-carbon hydrogen (LCH), carbon capture and storage (CCS), and electrification, though these face high capital expenditure (CAPEX) and infrastructure barriers.
• Short-term emission reductions can be achieved through energy efficiency, the use of supplementary cementitious materials (SCMs) in cement, and replacing fossil fuels with biomass or refuse-derived fuels (RDF).
• Brazil has established several regulatory frameworks to drive the transition, including the Brazilian GHG emissions trading system (SBCE) under Law No. 15,042/2024 and the legal framework for low-carbon hydrogen (Law No. 14,948/2024).
• Green finance opportunities exist but are underutilised; while BRL 24 billion is available for the civil construction sector in Brazil, only 1% of available credit has been used by the construction and real estate sector.
• International regulatory pressures, specifically the European Union's Carbon Border Adjustment Mechanism (CBAM), are driving Brazilian companies to invest in sustainability to maintain export competitiveness.

APA

Alves, S., de Araújo, B. C., & Tanwar, S. (2025). Decarbonising to Compete: Towards a Low-Carbon Cement and Steel Industry in Brazil. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/Decarbonising-to-Compete_English.pdf

Chicago

Alves, Sheila, Bruno Coloma de Araújo, and Sumedha Tanwar. Decarbonising to Compete: Towards a Low-Carbon Cement and Steel Industry in Brazil. Climate Bonds Initiative, 2025. https://www.climatebonds.net/files/documents/publications/Decarbonising-to-Compete_English.pdf.

Wikipedia

{{cite report |last1=Alves |first1=Sheila |last2=de Araújo |first2=Bruno Coloma |last3=Tanwar |first3=Sumedha |title=Decarbonising to Compete: Towards a Low-Carbon Cement and Steel Industry in Brazil |publisher=Climate Bonds Initiative |date=October 2025 |url=https://www.climatebonds.net/files/documents/publications/Decarbonising-to-Compete_English.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{alves2025decarbonising, author = {Alves, Sheila and de Araújo, Bruno Coloma and Tanwar, Sumedha}, title = {{Decarbonising to Compete: Towards a Low-Carbon Cement and Steel Industry in Brazil}}, institution = {Climate Bonds Initiative}, year = {2025}, month = oct, url = {https://www.climatebonds.net/files/documents/publications/Decarbonising-to-Compete_English.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }