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CBAM Iron & steel: embedded emissions, default values & how to cut your bill (2026)
Iron and steel is the largest CBAM sector by import volume, and the one where the production route matters most. Two plants making the same tonne of steel can have embedded emissions that differ by a factor of three — so the route you declare, and whether you use verified data, drives your CBAM bill.
Why steel emissions vary so much
Almost all of steel's carbon sits in the ironmaking step. An integrated blast-furnace / basic-oxygen route burns coke and coal to reduce iron ore, so its specific embedded emissions (SEE) land around 2.2 tCO₂e per tonne of crude steel. An electric-arc furnace melting scrap skips ironmaking almost entirely and can be closer to 0.6 tCO₂e/t.
That spread is why a single EU default value overstates a clean plant's real footprint — and why verified route data is worth collecting.
Default values vs verified data for steel
Where you cannot yet provide verified actual emissions, the EU default value applies — and for iron & steel that default carries a regulatory mark-up (10% in 2026, rising to 20% in 2027 and 30% from 2028). Verified supplier data removes the mark-up and usually reflects lower real emissions, so the same shipment carries a smaller, defensible bill.
How to cut your steel CBAM cost
Model the actual route in a plant twin, collect verified emission factors from your mill, and account for any carbon price already paid in the country of origin (the Article 9 credit). The live tour below shows exactly where a steel plant's carbon enters — and where a cleaner input would remove it.
Free cost check using the official EU default values — your number in two minutes.
Run the free estimateIron & steel CBAM — frequently asked
What are the CBAM embedded emissions of steel?
It depends on the route: an electric-arc furnace on scrap can be around 0.6 tCO₂e/t while an integrated blast-furnace/BOF route is around 2.2 tCO₂e/t. Both are computed live in the steel tour.
How much is the CBAM default-value mark-up for steel?
For iron & steel the default value carries a mark-up of 10% in 2026, 20% in 2027 and 30% from 2028. Verified actual data removes it.
Which goods are covered under CBAM steel?
Iron & steel goods under chapters 72 and 73 of Annex I to Regulation (EU) 2023/956, including semi-finished and many downstream products.