Brazil has the potential to become a global hub for low-carbon steel and aluminum. The report, presented at the Brazil Climate Summit Europe, outlines how Brazil could help reduce up to 40 million tons of CO₂ emissions in Europe by exporting 15–20 million tons of green steel, accelerating industrial decarbonization and driving investment.
The country could unlock between $2 and $3 trillion in investments by leveraging its natural advantages, such as abundant wind and solar energy (with a competitive LCOE of $33/MWh), over $15 billion in annual energy investment, and access to key raw materials like iron ore and bauxite. Brazil is also well-positioned to become a global hydrogen hub, with the potential to capture 10–15% of global exports by 2030. Decarbonizing Brazil’s steel and aluminum value chains could reduce global emissions by up to 5%. This transition could also help the EU lower its Scope 3 emissions significantly, with the potential to reduce 85–105 million tons of CO₂e in steel and 40–50 million tons in aluminum.
To realize this opportunity, Brazil must address key challenges — including scaling scrap usage, investing in breakthrough technologies, and establishing clear policy and financial incentives. Transforming Brazil into a global green metals hub is not only an environmental imperative, but also a strategic economic opportunity that could attract €10–15 billion in investment and multiply exports to Europe by up to 22 times.