CBAM and EUDR: the two EU rules that decide who keeps exporting

For decades, exporting to Europe required quality, price and customs paperwork. From now on it also requires carbon data and geographic coordinates of production. Two regulations explain that: CBAM and EUDR.

CBAM: carbon becomes an import cost

The Carbon Border Adjustment Mechanism enters its definitive phase in 2026. European importers of steel, aluminium, cement, fertiliser, hydrogen and electricity start buying certificates matching the emissions embedded in the products. In practice, a Brazilian exporter unable to evidence its real emissions will be taxed on default values, which are generally higher.

Our reading: Brazilian industry holds a competitive advantage it barely exploits, a clean electricity matrix. But an advantage that is not measured and certified is worth nothing at the European border.

EUDR: prove it did not come from deforestation

The deforestation regulation requires soy, beef, coffee, cocoa, timber, rubber, palm oil and their derivatives to be traceable back to the production area, with geolocation and proof that no deforestation occurred after 2020. Enforcement was postponed, but buyers are already demanding the data in contracts.

What to do now

1. Inventory emissions per product, using a recognised methodology, and prepare the reports in the format the importer requires.
2. Map the origin of each lot with geolocation and land documentation.
3. Add environmental compliance clauses to supplier contracts.
4. Choose logistics partners who understand the European documentary flow and know what local brokers will ask for.

Environmental compliance stopped being marketing and became customs. TMLOG builds these requirements into shipment planning so the cargo arrives with the right data, in the right format.