Forging a Sustainable Future: Brazil’s Opportunity to Lead Steel Decarbonization

Brazil is positioned as a potential global leader in green steel due to high-quality iron ore and vast renewable energy resources, though its industry remains heavily reliant on coal-based blast furnaces. While the country leads in biochar use, a full transition requires shifting to electric arc furnaces (EAF) and green hydrogen-based direct reduced iron (DRI). The report emphasizes that strategic policy and the upcoming COP30 summit are critical to overcoming the longevity of existing coal-based infrastructure and the high capital costs of new technologies.

• Brazil's steel industry is dominated by emissions-intensive technology, with 76% of operating capacity using blast-furnace-basic oxygen furnace (BF-BOF) and only 24% using electric arc furnaces (EAF).
• Decarbonization is hindered by the fact that over half of the blast furnaces at Brazil's largest plants were recently relined or started, meaning they can operate into the 2030s without intervention.
• Brazil is the world's largest producer of biochar-based steel, with roughly 11% of production based on biomass-derived charcoal as of 2021, though the carbon neutrality of this method is debated due to potential upstream deforestation emissions.
• Brazil has significant potential for green hydrogen-based direct reduced iron (H2-DRI) production, supported by its status as a top global player in hydropower, bioenergy, wind, and solar capacity.
• The country is exploring novel technologies like molten oxide electrolysis (MOE), with Boston Metal opening a plant in Minas Gerais in March 2024 to produce green iron without the need for hydrogen.
• Despite industrial potential, the Brazilian government has lacked specific steel-sector mitigation targets in its October 2023 NDC update and its January 2024 industrialization action plan.

APA

Swalec, G. C. C. (2024). Forging a Sustainable Future: Brazil’s Opportunity to Lead Steel Decarbonization. Global Energy Monitor. https://globalenergymonitor.org/research/forging-sustainable-future-brazils-opportunity-lead-steel-decarbonization

Chicago

Swalec, Gregor Clark, Caitlin. Forging a Sustainable Future: Brazil’s Opportunity to Lead Steel Decarbonization. Global Energy Monitor, 2024. https://globalenergymonitor.org/research/forging-sustainable-future-brazils-opportunity-lead-steel-decarbonization.

Wikipedia

{{cite report |last1=Swalec |first1=Gregor Clark, Caitlin |title=Forging a Sustainable Future: Brazil’s Opportunity to Lead Steel Decarbonization |publisher=Global Energy Monitor |date=29 August 2024 |url=https://globalenergymonitor.org/research/forging-sustainable-future-brazils-opportunity-lead-steel-decarbonization |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{swalec2024forging, author = {Swalec, Gregor Clark, Caitlin}, title = {{Forging a Sustainable Future: Brazil’s Opportunity to Lead Steel Decarbonization}}, institution = {Global Energy Monitor}, year = {2024}, month = aug, url = {https://globalenergymonitor.org/research/forging-sustainable-future-brazils-opportunity-lead-steel-decarbonization}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }