Steel Production: Carbon Accounting Guide

Iron and steel are covered by EU CBAM. EU importers declare embedded emissions per tonne; without a producer’s actual data, default values apply and the cost rises.

The question eu importers ask

“What are the embedded emissions per tonne of the steel you ship to us?”

This sector is covered by EU CBAM (Regulation (EU) 2023/956). Since 1 January 2026, EU importers declare embedded emissions; without actual producer data, default values with a mark-up apply.

Scope 1 sources (evidence: fuel invoices)

• Coal and coke in furnaces
• Reheating furnace fuel
• Direct reduction processes
• On-site transport and handling

Scope 2 sources (evidence: electricity bills)

• Electric arc and induction furnaces
• Rolling mill drives
• Compressed air
• Material handling

Scope 3 sources (evidence: purchase and freight invoices)

• Iron ore, pellets and sponge iron
• Scrap purchases
• Limestone and fluxes
• Freight to port

Worked example

Illustrative monthly quantities: 4,00,000 kWh of grid electricity, 60,000 kg of coal, 8,000 litre of furnace oil, multiplied by the emission factors Senseible uses and annualised. Energy only. CBAM embedded emissions per tonne also need production quantities and, for some routes, precursor and process emissions.

Where reductions usually start

• Higher scrap share in the charge
• Furnace and reheating efficiency
• Renewable electricity for arc and induction furnaces
• Waste heat recovery
• Hydrogen-based direct reduction (long term)

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