Environmental compliance for exporters to the European Union

The Carbon Border Adjustment Mechanism (CBAM) is the EU's carbon pricing scheme for imports. From 2026, European importers will pay a charge equivalent to the EU ETS carbon price on carbon-intensive products: steel, aluminum, cement, fertilizers, hydrogen and electricity.

Brazilian exporters have to supply verified embedded emissions data per tonne of product. Without that data, the European importer applies default values, usually higher than actual emissions, which raises the price of the product and cuts its competitiveness.

The Corporate Sustainability Reporting Directive (CSRD) requires large European companies to report environmental, social and governance indicators using the European Sustainability Reporting Standards (ESRS). Companies in the value chain, Brazilian suppliers included, are affected indirectly.

If your European customer has to report Scope 3, it will ask for your emissions data. Companies that cannot supply it lose contracts. Mangue Tech structures the inventory and the reporting in the format ESRS E1 requires.

The EU Deforestation Regulation (EUDR) bans the import of commodities linked to deforestation after December 2020. It covers soy, beef, timber, coffee, cocoa, palm oil and rubber, along with every product derived from them.

Exporters have to prove traceability down to the production plot with georeferenced coordinates, and to demonstrate compliance with local environmental law. Mangue Tech brings together georeferencing data, emissions inventory and environmental due diligence.