By Intern 1 – 10/16/2026

According to Saxton, steel industry decarbonization is no longer just an environmental concern and has begun to influence production costs and access to international markets. Under stricter regulations, companies using more polluting processes may face tariffs and other trade barriers.

“Increasingly, emissions will weigh on access to markets,” the executive states. He cites measures adopted by the European Union, the United States, and Japan as examples of a shift in trade and industrial policies, which are increasingly taking the climate impact of products into account.

Industry Seeks Alternatives to Reduce Emissions

The president of Brazil Iron also addresses the challenges of replacing conventional production methods, which still depend on coal. Installing electric arc furnaces can reduce emissions, but requires substantial investment and an adequate supply of raw materials.

“Steel production accounts for approximately 8% of global greenhouse gas emissions,” Saxton highlights. This figure helps illustrate the pressure on an industry that needs to reduce its carbon footprint without losing competitiveness.

In this process, metal scrap will play an important role, but it is not expected to meet global demand for primary iron on its own. For this reason, the executive identifies direct reduced iron (DRI) and hot briquetted iron (HBI) as important materials for supplying furnaces and expanding lower-carbon production alternatives.

“Brazil is well positioned to compete,” Saxton states. In his assessment, the country has favorable conditions due to the availability of high-quality iron ore and its renewable energy generation potential, factors that could contribute to the production of inputs for steelmakers in different markets.

Project in Piatã Responds to Emerging Market Demand

It is in this context that Brazil Iron’s project planned for Piatã, in the Chapada Diamantina region, comes into focus, with an announced investment of US$ 5.7 billion.

The initiative seeks to combine mineral processing technology and sustainable solutions for green iron production, with the potential to integrate Bahia into an international supply chain that demands raw materials with a lower carbon footprint.

The article also mentions an assessment by Bureau Veritas projecting that one of the Brazilian projects under development will achieve a carbon factor of approximately 0.14 tonnes of CO₂ equivalent per tonne of HBI by 2034.

“Independently assessed data such as these will become increasingly important,” Saxton writes, emphasizing the importance of technical verification for companies, investors, and regulatory authorities.

In the executive’s view, closer cooperation between Brazil and Europe could facilitate the transition. While Brazil has the potential to produce iron with lower carbon intensity, European countries have an established steel industry and automotive and engineering sectors interested in materials with verified environmental performance.

“With imported HBI, European EAFs could take advantage of this combination,” Saxton states.

The assessment indicates that supplying low-carbon iron could create commercial opportunities for Brazil, while projects such as the one planned for Piatã seek to establish a foothold in a market increasingly focused on emissions and sustainable industrial production. Jornal da Chapada, with information from CNN Brasil.

Source: www.jornaldachapada.com.br