Assessing environmental and market implications of steel decarbonisation strategies in Brazil

This study examines the transition to low-carbon steel production in Brazil, highlighting its environmental and economic implications. The results show that adopting cleaner technologies can reduce emissions by 69% while also lowering steel prices by up to 38%, challenging the assumption that decarbonization comes at a financial cost. Brazil’s abundant renewable energy resources and potential for green hydrogen production position the country as a key player in the global green steel economy. Furthermore, the study demonstrates that using the Input-Output Matrix and the Multifunctional Analysis of Regions through Input-Output (MARIO) model is an effective method for analyzing sectoral interactions and economic impacts.

To ensure a successful transition, policymakers should establish clear regulations for green hydrogen production, implement subsidies and tax incentives to support clean energy investments, and enhance grid expansion and storage capacity. Strengthening steel recycling systems and promoting electric arc furnace adoption will further reduce emissions and energy demand. Additionally, long-term policy stability, carbon pricing mechanisms, and international trade agreements will be essential to securing investment and ensuring competitiveness in global markets. A just transition must also be prioritized by investing in workforce training programs to prepare for shifts in employment within the steel sector.