- Default values don’t reflect actual emissions intensity
- Uncertainty prevails over CBAM accreditation and verification
SteelOrbis: Turkish steel industry experts have stated that the default emission values under the EU’s Carbon Border Adjustment Mechanism (CBAM) do not accurately reflect Turkiye’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, emphasised 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 Turkiye’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% of Turkiye’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 Turkiye’s actual carbon intensity.
In some cases, Turkiye’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 authorised 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 recognising Turkiye’s EAF-based production structure is essential to preserving export competitiveness, while also urging stronger institutional engagement to address verification issues and ensure that Turkiye’s position is effectively represented in international discussions.
This article is published as part of an article sharing agreement between SteelOrbis and BigMint.
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