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Brazil has outlined a phased rollout plan for its national Emissions Trading System, bringing the iron and steel sector into the first implementation phase from 2027. The proposal also covers cement, pulp and paper, primary aluminum, oil and gas, refining, and aviation in the initial stage.
The second phase, planned for 2029, will expand to mining, electricity generation, glass, chemicals, ceramics, food and beverage, and waste management. A third phase from 2031 will include road, rail, and waterway transport.
During the early transition period, companies will focus on emissions monitoring and reporting, with no immediate carbon costs or penalties. The move aims to create a predictable carbon market while supporting industrial decarbonization and competitiveness. For Brazil’s steel industry, the plan signals a gradual shift toward cleaner production and stronger environmental compliance.
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