Turkish steel sector: CBAM default values fail to reflect low-carbon production

Wednesday, 01 April 2026 15:13:59 (GMT+3)   |   Istanbul

The Turkish steel sector has stated that the default emission values under the EU’s Carbon Border Adjustment Mechanism do not accurately reflect Turkey’s low-carbon production structure, calling for a reassessment of the methodology.

Yalçın Ertan, chairman of the Aegean Ferrous and Non-Ferrous Metals Exporters Association, emphasized that CBAM has become a key policy tool in a global trade environment increasingly shaped by carbon considerations.

Default values risk distorting competitiveness

Ertan noted that, for Turkey’s export-oriented steel industry, CBAM is not only an environmental mechanism but also a strategic factor directly impacting competitiveness in the EU market.

While the mechanism aims to prevent carbon leakage and support sustainable production, he stressed that calculation methodologies must reflect the actual production conditions of exporting countries.

EAF-based production structure overlooked

According to Ertan, approximately 70 percent of Turkey’s steel production is carried out via the electric arc furnace route, which relies heavily on scrap and results in significantly lower carbon emissions compared to blast furnace-based production. However, in cases where verified emissions data are not submitted, default emission values are applied. He argued that these default values appear to be based on higher-emission production routes, failing to reflect Turkey’s actual carbon intensity. In some cases, Turkey’s assigned values are reported to be higher than those of regions where production is predominantly based on blast furnace routes, creating a clear competitive disadvantage.

Ertan also highlighted ongoing uncertainty regarding accredited verification bodies required under CBAM. Although the EU mandates verification of emissions data, the institutions authorized to carry out this process have not yet been clearly defined. This could limit companies’ ability to access verification services in a timely manner, potentially leading to additional costs and operational challenges.

Call for alignment with real data

The Turkish steel sector has called for emissions to be calculated based on verified, plant-level data in line with CBAM methodology. Ertan stressed that recognizing Turkey’s EAF-based production structure is essential to preserving export competitiveness, while also urging stronger institutional engagement to address verification issues and ensure that Turkey’s position is effectively represented in international discussions.

ElifKefeli
Elif Kefeli
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I graduated from Yeditepe University’s Department of Translation and Interpreting Studies in 2017. I joined SteelOrbis in 2021, where I currently work as a content specialist. I am writing news reports and industry-related content with a special focus on decarbonization, green steel, sustainability, and recycling.

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