CBAM does not take into account the structure of steel production in Turkey – EDDMİB

SEATTLE (Scrap Monster): The default emission values announced by the EU under the Carbon Border Adjustment Mechanism (CBAM) do not adequately reflect Turkey’s low-carbon production structure.

This was emphasized by Yalçın Ertan, president of the Aegean Region Ferrous and Non-Ferrous Metals Exporters’ Association, according to SteelRadar.

The association believes the current approach undermines competitiveness and has called for a reassessment of the default values based on countries’ production methods.

He added that the CBAM provides a framework that directly affects manufacturers exporting to the EU market and companies importing these products. Therefore, it is crucial that the calculation methods and approaches used in practice accurately reflect the production structures of different countries. Calculations must be based on actual data obtained from manufacturers and verified in accordance with the mechanism’s methodology.

Approximately 70% of production in the Turkish steel sector is carried out using electric arc furnaces, largely based on scrap. However, as Ertan noted, how this advantage is reflected under the CBAM is a separate issue, since the carbon emissions embedded in the product directly affect financial obligations. Therefore, how emissions are calculated and values are verified becomes critically important.

The association’s president also noted that the designation of accredited organizations is extremely important and urgent to resolve uncertainty for exporters and ensure the continuity of exports.

Yalçın Ertan noted that Turkey is represented with a carbon intensity that exceeds its actual emissions figures. In particular, for some product groups, the values set for Turkish goods are higher than even those in regions such as China.

The association emphasized that it cannot accept this approach, which does not reflect production realities and creates serious competitive unfairness for the sector, and therefore expects support from the ministries.

It should be recalled that Turkey and the European Union discussed the technical aspects of the CBAM at a working group meeting held in March. Negotiators focused on how Turkey’s renewable energy system could be accounted for in the methodology applied to exports to the EU. The issue of recognizing verification processes that would allow Turkish exporters in relevant sectors to use actual emission values instead of default values was also raised. Additionally, the consultations covered a review of the default emission values set for certain sectors.

Courtesy: www.gmk.center