July2024©2024InternationalInstituteforSustainableDevelopment|IISD.orgGlobalDialogueonBorderCarbonAdjustmentsThecaseofBrazilIISDREPORTIISD.orgiiGlobalDialogueonBorderCarbonAdjustments:ThecaseofBrazil©2024InternationalInstituteforSustainableDevelopmentPublishedbytheInternationalInstituteforSustainableDevelopmentThispublicationislicensedunderaCreativeCommonsAttribution-NonCommercial-ShareAlike4.0InternationalLicense.InternationalInstituteforSustainableDevelopmentTheInternationalInstituteforSustainableDevelopment(IISD)isanaward-winning,independentthinktankworkingtoacceleratesolutionsforastableclimate,sustainableresourcemanagement,andfaireconomies.Ourworkinspiresbetterdecisionsandsparksmeaningfulactiontohelppeopleandtheplanetthrive.Weshinealightonwhatcanbeachievedwhengovernments,businesses,non-profits,andcommunitiescometogether.IISD’sstaffofmorethan200peoplecomefromacrosstheglobeandfrommanydisciplines.WithofficesinWinnipeg,Geneva,Ottawa,andToronto,ourworkaffectslivesinmorethan100countries.IISDisaregisteredcharitableorganizationinCanadaandhas501(c)(3)statusintheUnitedStates.IISDreceivescoreoperatingsupportfromtheProvinceofManitobaandprojectfundingfromgovernmentsinsideandoutsideCanada,UnitedNationsagencies,foundations,theprivatesector,andindividuals.GlobalDialogueonBorderCarbonAdjustments:ThecaseofBrazilJuly2024WrittenbyCINDES–CentrodeEstudosdeIntegraçãoeDesenvolvimentoPhoto:iStockHeadOffice111LombardAvenue,Suite325Winnipeg,ManitobaCanadaR3B0T4Tel:+1(204)958-7700Website:iisd.orgX-TWITTER:@IISD_newsIISD.orgiiiGlobalDialogueonBorderCarbonAdjustments:ThecaseofBrazilTableofContents1.0Introduction....................................................................................................................................................................12.0Context.............................................................................................................................................................................32.1WhatIsaBCA?.............................................................................................................................................................................32.2WhyHaveBCAsBecomeaRelevantTopicintheInternationalAgenda?...................................42.3Brazil’sIn-CountryProcessanditsObjectives...................................................................................................63.0TheExpectedImpactsofEU’sCBAMinBrazilandtheRisksofBCADiffusiontoitsJurisdictions...........................................................................................................................................................................73.1TheRelevanceoftheEUMarketforCBAM-AffectedProducts.............................................................73.2Brazil’sRelevanceasaSuppliertotheEuropeanMarketandItsMainCompetitors......104.0ReactionsandResponsesbytheMainStakeholders............................................................................144.1ResponsebytheBrazilianGovernment.................................................................................................................144.2ResponsesbytheBusinessSector............................................................................................................................145.0TheDialoguesinBrazil:Stakeholders’mainconcernsandsta...