Global Dialogue on Border Carbon Adjustments: The case of Brazil

This report analyzes the potential impacts of border carbon adjustment (BCA) schemes, specifically the EU's Carbon Border Adjustment Mechanism (CBAM), on Brazil. Based on research and stakeholder dialogues, it identifies challenges regarding export competitiveness, compliance costs, and the need for international collaboration to balance climate goals with economic equity.

• The EU Carbon Border Adjustment Mechanism (CBAM) is expected to have limited effects on Brazil because only a small portion of Brazilian exports to the EU are covered by the mechanism.
• While the EU's impact may be limited, Brazilian exports could face more significant impacts from BCAs implemented in other jurisdictions, specifically the United States.
• A primary obstacle in Brazil is the lack of awareness regarding CBAM and other BCA measures, which may hinder the country as more such schemes are introduced.
• Stakeholders identified several critical challenges associated with BCAs, including short-term negative impacts on exports, economic activity, and employment, as well as high compliance costs and the investment required to change production methods in affected sectors.
• Brazilian exporters are concerned that administrative burdens and compliance costs of BCAs must be fair to avoid giving domestic producers in the implementing jurisdictions a disproportionate advantage.

APA

CINDES, (2024). Global Dialogue on Border Carbon Adjustments: The case of Brazil. International Institute for Sustainable Development. https://www.iisd.org/publications/report/border-carbon-adjustments-brazil

Chicago

CINDES,. Global Dialogue on Border Carbon Adjustments: The case of Brazil. International Institute for Sustainable Development, 2024. https://www.iisd.org/publications/report/border-carbon-adjustments-brazil.

Wikipedia

{{cite report |last1=CINDES, |title=Global Dialogue on Border Carbon Adjustments: The case of Brazil |publisher=International Institute for Sustainable Development |date=19 July 2024 |url=https://www.iisd.org/publications/report/border-carbon-adjustments-brazil |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cindes2024global, author = {CINDES,}, title = {{Global Dialogue on Border Carbon Adjustments: The case of Brazil}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = jul, url = {https://www.iisd.org/publications/report/border-carbon-adjustments-brazil}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }