CBAM Guide for the Iron-Steel Sector

Iron-Steel is the CBAM sector with the most product sub-categories (10 distinct groups) and one of the sectors where Turkey holds the largest share of exports to the EU. In this guide, we cover the embedded emissions coefficient for each product group in detail, along with a real cost calculation.

For how CBAM works in general, the transition timeline, and the certificate cost formula, we recommend first reading our general CBAM guide — here we focus directly on the coefficients and example specific to the Iron-Steel sector.

Iron-Steel CBAM Product Catalog

CBAM covers 10 product groups in the Iron-Steel sector (CN codes 72, 7301-7311, 7318, 7326):

Source: the CBAM section of our Bibliography page (full list of all 25 products).

Why the Coefficients Differ, and Which Product Group Is Riskier?

The main driver behind the coefficient differences is the number of processing steps added during production: Pig Iron (1.40) has a relatively low coefficient because it's the ore's first reduced state from the blast furnace. As a product is processed further — up to Ferro-Alloys (2.50) or Seamless Tubes (2.30) — each additional processing step (melting, rolling, forming) adds its own energy intensity, raising the embedded emissions coefficient. Since a significant share of Turkish iron-steel exports is concentrated in flat products (hot/cold-rolled), these two categories carry substantial weight in the total CBAM cost impact.

Worked Example

For a company exporting 100 tons of Seamless Tubes (coefficient: 2.30 ton CO2e/ton):

Embedded Emissions = 100 tons × 2.30 = 230 ton CO2e
Cost = 100 × 2.30 × €72.5/ton (EU ETS price) × 0.10 (2026 phase-out rate) = €1,667.50

At the same export volume, this figure will rise to roughly 2.5 times that amount in 2027 (at a 25% rate), and 10 times that amount by 2032 (at a 100% rate) — see the transition timeline in our general CBAM guide for details.