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    CBAM for Iron & Steel

    Your import and export costs are set to rise due to CBAM regulations.

    Get a long-term strategy in place to ensure you remain commercially competitive as carbon regulations take hold.

    CBAM compliance for iron & steel

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    CBAM puts a direct cost on imported iron and steel, with blast furnace emissions hardest to avoid.

    CFP Energy helps steel and iron producers manage compliance, control costs, and plan the shift to low-carbon production.

    Without a clear costing strategy, you may see dramatic cost increases in the near future.

    Contact CFP Energy for immediate support.

      The challenges we help you overcome

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      High process emissions


      Blast furnace and DRI routes remain hard to decarbonise at scale.

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      Carbon leakage risk


      Imports face EU ETS-equivalent costs, creating pricing uncertainty.

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      High energy intensity

      Transitioning to renewable-based hydrogen and electricity is capital-intensive.

      How CFP Energy reduces your CBAM risk

      CBAM Certificate Procurement for Steel Imports

       

      Secure timely access to CBAM certificates covering embedded emissions in iron, semi-finished steel, and downstream products. Our market expertise ensures importers avoid compliance delays and price shocks.

       

      Hedging Against ETS-Linked Carbon Costs

       

      Steel is directly exposed to volatile EU ETS prices, which set the benchmark for CBAM. CFP Energy structures hedging solutions that smooth cost exposure, protect margins, and stabilise long-term import planning.

      Carbon delivery expertise

       

      With 15+ years supporting clients across compliance markets and multiple geographies, our team has the experience to ensure your long-term energy transition success.

      End-to-End CBAM & ETS Compliance

       

      From embedded emissions calculations to verified reporting, CFP Energy ensures accuracy and alignment with both CBAM and ETS rules. Our regulatory expertise reduces administrative burdens and keeps steel businesses compliant in a tightening carbon market.

      Request more CBAM information from our metal industry experts.

       

       

      CBAM Iron & Steel FAQs

      Iron and steel importers must report embedded carbon emissions quarterly under CBAM. This includes Scope 1 process emissions and Scope 2 electricity emissions linked to production. Accurate reporting avoids punitive default values and ensures compliance with EU ETS-aligned carbon pricing, protecting competitiveness in European steel markets.
      From 2026, importers of iron and steel must purchase CBAM certificates. These reflect embedded CO₂ emissions and are priced in line with EU ETS allowances. The financial adjustment replaces free allocation, levelling carbon costs between EU producers and international suppliers. Early preparation ensures smoother compliance and cost control.
      If accurate emissions data for iron and steel are unavailable, CBAM applies default embedded carbon values. These are set conservatively high, increasing costs. Importers should therefore collect verified emissions data from suppliers to minimise CBAM certificate purchases and maintain competitiveness in the EU steel market.
      Steel produced via blast furnace emits around 2 tonnes CO₂ per tonne, compared to 0.1 tonnes for electric arc furnaces. Under CBAM, high-emission producers must purchase significantly more certificates, raising import costs. This accelerates demand for low-carbon steel pathways such as hydrogen-based direct reduction and renewable power sourcing.
      Green steel producers, using hydrogen or electric arc furnaces powered by renewable electricity, benefit under CBAM. Lower embedded emissions mean fewer certificates are required, reducing costs. This creates a competitive advantage in the EU market, where demand for low-carbon steel is rising due to decarbonisation and sustainability targets.