Iron & Steel Sector

For the Iron & Steel Sector CBAM Solution

Carbonaz fully supports the four main routes of steel production (BF-BOF, EAF, DRI-EAF, SR). CBAM 2026 sectoral benchmark values are defined in the system, the Annex II Scope 2 exemption is applied automatically and the CN code 72xx series is fully supported.

Full Support for Every Production Route

The Four Main Production Methods of the Iron & Steel Sector

Customized calculation engines, dedicated process types and correct emission factors for each route.

BF-BOF

Blast Furnace and Basic Oxygen Furnace. Full calculation including hot metal production, coking coal, limestone flux and BOF electrode consumption. Turkey's most common production route.

Hot metalCoking coalLimestoneBOF electrode

EAF

Electric Arc Furnace. CBAM 2026 benchmark-compliant calculation for carbon steel and high-alloy steel production. The Annex II Scope 2 exemption is applied automatically.

EAF Carbon SteelEAF High AlloyScrap metalElectrode consumption

DRI-EAF

Direct Reduced Iron combined with EAF. Natural gas or hydrogen reduction, DRI process emissions and electricity consumption. The core route for green steel production.

DRI reductionNatural gasHydrogenEAF integration

SR (Smelting Reduction)

Customized calculation methodology for smelting reduction processes. Ready infrastructure for advanced technologies such as HIsmelt and COREX.

HIsmeltCOREXFINEXBath smelting

Calculation Accuracy

CBAM 2026 Benchmark Data Built In

The European Commission's official benchmark values are defined in the system. You do not need to enter them manually for the free allocation (FAA) calculation.

ProductBenchmark
Hot Metal / Pig Iron1.370 tCO₂/ton
EAF Carbon Steel (Scrap)0.072 tCO₂/ton
DRI-EAF0.481 tCO₂/ton
EAF High-Alloy Steel0.352 tCO₂/ton

Source: CBAM 2026 Benchmark (IR 2025/2620) · Carbonaz seed data available in the system

Sector-Specific Capabilities

Built From Scratch for Iron & Steel

The Annex II Scope 2 Exemption Is Applied Correctly

For iron and steel, Scope 2 is calculated but not included in the CBAM certificate calculation. Carbonaz manages this automatically, with no manual intervention required.

Full Support for the CN Code 72xx Series

All iron and steel CN codes from 72011000 to 72163100 are defined in the system. Automatic matching when adding a product.

Multi-Tier Precursor Supply Chain

An unlimited-depth supply chain for iron ore, coking coal and alloying elements. You can collect data even from your supplier's supplier's supplier.

Automatic 80/20 Actual Data Rule Check

The actual supplier data ratio is tracked automatically in every calculation. When it drops below 80%, it warns you of the mark-up penalty in advance.

Automatic Process Type Selection by Production Route

Based on the BF-BOF or EAF choice, the appropriate process types (electrode consumption, limestone flux, DRI reduction) appear automatically.

Correct Annual Mark-up Penalty Rate

2026 +10%, 2027 +20%, 2028 and beyond +30% are coded correctly. Year-based simulation projects your future cost.

Full CBAM Factor Transition 2026 → 2034

The 0.025 → 1.000 transition schedule is recorded in the system. Project your costs for the coming years.

Immutable Audit Trail · 7-Year Retention

Every data entry, every calculation and every report is recorded so it cannot be changed retroactively. Ready for SGS verification.

Specific Calculation for Liquid Iron and Steel

Separate benchmarks and free allocation calculations for hot metal (pig iron), EAF carbon steel and high-alloy steel.

Native-Language Interface and Support

The interface, documentation and support are available in multiple languages. Your team works in its own language.

CBAM Factor Phase-In Schedule

From 2026 to 2034: Cost Projection

The CBAM factor rises year over year, reaching a full 100% in 2034. Carbonaz supports every transition year and shows your future cost today with the mark-up simulator.

YearCBAM Factor
20260.025
20270.050
20280.100
20290.225
20300.485
20310.610
20320.735
20330.860
20341.000

Source: Regulation (EU) 2023/956 Article 31 · Carbonaz seed data

Frequently Asked Questions

Iron & Steel CBAM Questions

In iron and steel, are Scope 2 (indirect) emissions included in the CBAM certificate calculation?
No. Iron and steel fall under Annex II of the CBAM regulation. Scope 2 emissions are calculated and reported but are not included in the certificate obligation. Carbonaz applies this distinction automatically.
How is the calculation difference between the BF-BOF and EAF routes managed?
When you select the production route, the appropriate process types appear automatically. Route-specific inputs such as hot metal, coking coal, limestone flux and BOF electrode for BF-BOF, and scrap metal and electrode consumption for EAF, are calculated separately.
Which CBAM 2026 benchmark values are used for iron and steel?
Hot metal (pig iron) 1.370, EAF carbon steel (scrap) 0.072, DRI-EAF 0.481 and EAF high-alloy steel 0.352 tCO₂/tonne benchmark values are defined in the system. You do not need to enter these manually for the free allocation (FAA) calculation.
How are precursor emissions such as iron ore and coking coal collected?
With the multi-tier supply chain, precursor emissions are collected to the end of the chain. The actual supplier data ratio is monitored in every calculation, and when it drops below the 80% threshold you are warned ahead of the mark-up penalty.
Which iron and steel CN codes are supported?
All iron and steel CN codes between 72011000 and 72163100 (the 72xx series) are defined in the system and match automatically when adding a product.

Request a Demo for Iron & Steel

In a 30-minute demo, see your sector-specific calculations, supplier management and reporting workflow live.