The European Commission (EC) has published its industry guidance for ferrous metallurgy under the Carbon Boundary Adjustment Mechanism (CBAM) to help non-EU operators, and has provided detailed rules for calculating and monitoring emissions for a specific period starting in 2026.
According to the guidelines, ferrous metallurgy and steel enterprises outside the EU must be protected from emissions. Imports are divided into six main aggregated commodity categories: sintered ore, ferroalloys, cast iron, direct reduction cast iron (DRI), crude steel, and cast iron or steel products. The latter category includes a wide range of products, including flat rolled products, rods, wire rod, profiles, shell pipes, structural products, containers, container containers and fasteners.
,Direct emissions tend to relate to metal products, ,
,For cast iron and steel products, only direct emissions are usually included in total emissions over a certain period. The main exception is sintered ore classified according to CN 2601 12 00, for which indirect emissions related to electricity must also be calculated. When sintered ore is subsequently used as a raw material for the production of another steel product, these indirect emissions are included in the emissions associated with the production of the next product.
The Commission also clarified that the production of complex steel products should take into account emissions associated with their respective precursors, including sintered ore, pig iron, DRI, ferroalloys and crude steel. Emissions of waste generated after consumption are zero, as are the corresponding precursors produced in EU countries or in territories not covered by CBAM.
,, Electric power emissions from electric arc furnaces excluded from calculations for steel smelting, ,
,When steel is smelted in electric arc furnaces, electricity-related emissions are not included in the emissions associated with steel production over a certain period, despite the fact that electricity is the main source of energy for steel production. However, it is necessary to calculate the direct emissions resulting from the use of fuels, electrodes, carbon-containing materials and other relevant sources.
According to the guidelines, under certain circumstances, operators are allowed to combine multiple production steps into a single production process, or "bubble". For example, an integrated steel producer can combine the production of sinter, cast iron and crude steel with subsequent operations when the raw materials of its own production are completely consumed.
