From 2026 onwards, importers of steel into the EU will need to purchase CBAM certificates to cover the carbon emissions embedded in the steel, unless they can prove that an equivalent carbon price was already paid in the country of origin.
The exact cost of CBAM for steel imports depends on several factors:
- Carbon Intensity: The amount of CO₂ emitted per ton of steel produced.
- EU ETS Carbon Price: The price of carbon allowances under the EU ETS, which fluctuates based on market conditions. As of recent estimates, this price can be around €60 to €100 per ton of CO₂ (Steel News by Gerber Group).
- Production and Compliance Costs: Costs associated with implementing cleaner technologies and verifying emissions data.
For instance, with an EU ETS price of €60 per ton of CO₂ and an average carbon intensity of 1.9 tons of CO₂ per ton of steel, the cost impact would be:
=> CBAM Cost per ton of steel=1.9 tons CO2×€60/ton CO2=€114
This cost adds to the price of imported steel, potentially increasing the overall expense for importers and impacting the competitiveness of non-EU steel producers in the European market.
