As of January 1, 2026, the European Union's Carbon Border Adjustment Mechanism (CBAM) moved out of its transition period into full regime. For Turkish manufacturers working with steel and iron products, this is no longer an abstract regulation — it has become a direct cost line. In this article, we look at the cbam steel sector impact and how metal fabricators can prepare for this process.
What Is CBAM and Why Does It Matter?
CBAM requires importers of carbon-intensive products into the EU to purchase certificates based on the emissions generated during production. The steel, iron, aluminum, cement, fertilizer, electricity, and hydrogen sectors are directly within scope. The goal is to prevent non-EU producers from escaping the carbon costs that EU producers already face.
Why Is Turkey in the High-Risk Group?
Turkey stands out, alongside China and India, among the countries exporting large volumes of iron and steel to the EU; roughly 41% of Turkey's exports to the EU come from CBAM-covered sectors. In sector-level assessments, iron and steel are highlighted as the most critical item in terms of absolute CBAM burden due to high export volume.
How Large Is the Cost Impact?
In one example scenario, a producer exporting 10,000 tons of steel annually with an emission intensity of 1.8 tCO2e per ton would face an annual cost of around €1.44 million, assuming a certificate cost of €80 per ton. For high-volume exporters, even small per-ton differences can translate into millions of euros in total impact.
Is EAF-Based Production an Advantage for Turkey?
A large share of the Turkish steel sector uses electric arc furnace (EAF) technology; the emission intensity of EAF (0.4-0.7 tCO2e/ton) is significantly lower than that of blast furnace (BF/BOF) methods (1.8-2.3 tCO2e/ton). However, Turkey's relatively high grid electricity emission factor (approximately 0.47 tCO2e/MWh) can partially erode this advantage through indirect emissions. Whether this advantage translates into pricing therefore depends on accurate measurement and documentation.
Practical Impacts for Metal Fabricators
For companies that fabricate finished sheet metal or welded products, CBAM's direct scope currently focuses primarily on raw iron and steel products (semi-finished goods, profiles, plates). However, the carbon cost of steel used in the supply chain can indirectly affect manufacturing costs by flowing through raw material prices. In addition, for companies exporting directly to the EU or supplying EU-based customers, the possibility of scope expansion remains on the table.
Recommendations for Preparation
Knowing the production method (EAF/BF-BOF) and energy source of the steel used when selecting suppliers can provide a future cost advantage. Using renewable energy stands out as one of the fastest-acting areas for reducing both direct and indirect emissions. Companies that begin tracking the carbon footprint of their supply chains now will be better prepared for future reporting and cost requirements.
DMK Makina's Approach
Based in Lüleburgaz and serving customers across the Thrace and Marmara regions in custom fabrication and steel construction, DMK Makina closely follows regulatory developments like this and shapes its supply chain decisions accordingly.
Conclusion
With CBAM moving to full regime in 2026, the cbam steel sector impact has become a reality that can no longer be deferred. For both direct exporters and fabricators using steel in their supply chains, making carbon intensity measurable and documentable will be one of the decisive factors in competitiveness going forward.
