Iron & Steel · India · 2026

CBAM for Indian steel exporters. Calmly, completely.

India ships over $5 billion of iron and steel to the EU each year. From January 2026, every tonne needs verified emission data. This guide walks through CN codes, BF-BOF vs EAF emissions, EU defaults, penalties — and how a named CBAM expert saves you 30–40% on every shipment.

Indian steel mill — molten steel pour at an integrated plant
On the floor
“Our buyer's declarant accepted the actuals on day one. The default-value markup was gone from the next invoice.”
— Integrated steel plant, Raipur
₹8,400 Cr+
Annual Indian steel exports to EU
24.4%
Drop in steel exports to EU (FY25)
2.2–2.8
tCO₂ / t for BF-BOF steel
30–40%
CBAM saving on verified actuals
CN code map

Eight steel product groups covered by CBAM

If your product sits under any of these CN codes and goes to the EU, CBAM compliance is mandatory from January 2026.

CN codeProduct categoryRisk
7206–7207Pig Iron & SpiegeleisenHigh
7208–7212Flat-Rolled Steel (Hot & Cold)High
7213–7215Bars, Rods & Wire RodHigh
7216–7217Angles, Shapes & WireMedium
7218–7223Stainless Steel ProductsHigh
7224–7229Alloy Steel ProductsMedium
7301–7307Structural & Pipes/TubesHigh
7318Fasteners (Screws, Bolts, Nuts)Medium
Emission intensity

Your route decides your CBAM bill.

Indian BF-BOF runs hotter than the EU average. But using verified actuals in place of EU defaults saves crores per consignment. All values are tCO₂ per tonne of crude steel; savings are per 1,000 t at ~€80/t CO₂.

Inside an Indian steel mill — production data feeding CBAM emission factors
Verified actual vs EU default · tCO₂ per tonne of crude steel Your verified actualOverpayment on EU default
BF-BOF (Blast Furnace)₹56–80 L saved / 1,000 t
0.00.0
EAF (Electric Arc Furnace)Scenario dependent
0.00.0
DRI / Sponge Iron + EAF₹40–64 L saved / 1,000 t
0.00.0
IF (Induction Furnace)₹36–56 L saved / 1,000 t
0.00.0

Representative midpoints. The red zone is the markup an EU default applies when no verified actual is filed — that gap is what your buyer overpays, and what CarbonSettle removes.

Production routeIndia typicalEU averageEU default valueSavings with actuals
BF-BOF (Blast Furnace)2.2–2.81.4–1.83.5+₹56–80 lakh
EAF (Electric Arc Furnace)0.8–1.40.3–0.52.0+₹48–72 lakh
DRI/Sponge Iron + EAF1.8–2.41.0–1.23.0+₹40–64 lakh
IF (Induction Furnace)1.2–2.00.5–0.82.5+₹36–56 lakh

Why default values are dangerous for Indian steel

EU default values assume the emission intensity of the worst 10% of EU producers — higher even than Indian actuals. A typical Indian BF-BOF plant emitting 2.5 tCO₂/t pays as if it emitted 3.5+ tCO₂/t. That's a ₹56–80 lakh overpayment per 1,000 t. CarbonSettle calculates verified actuals from your existing factory documents.

Cluster map

Indian steel clusters we serve

Region-specific production routes, fuel mixes and grid factors — we know the cluster before we walk in.

Jharkhand

Jamshedpur–Bokaro Belt

Integrated steel (Tata Steel, SAIL BSL)

Very High risk
Chhattisgarh

Raipur–Durg–Bhilai

Sponge iron, TMT bars, wire rods

Very High risk
Karnataka

Bellary–Hospet

Iron ore, pig iron, steel ingots

High risk
West Bengal

Durgapur–Asansol

Alloy steel, ferro-alloys

High risk
Tamil Nadu

Salem

Stainless steel, cold-rolled sheets

High risk
Andhra Pradesh

Visakhapatnam

RINL / Vizag Steel primary steel

High risk
Punjab

Ludhiana

Re-rolled steel, fasteners, auto parts

Medium risk
Maharashtra

Nagpur–Butibori

Steel wire, fasteners, auto parts

Medium risk
How we run your CBAM

Five steps. One named expert. Pre-verified output.

You share your factory documents. We deliver an EU-ready, declarant-friendly report — pre-verified by a top-3 EU auditor.

A glowing red-hot steel billet moving through a rolling mill in an Indian steel plant
  1. 01

    Factory boundary mapping

    We map your steel process — blast furnaces, BOF/EAF, reheating furnaces, casting, rolling mills — to identify every emission source per CBAM methodology.

  2. 02

    Data collection from your existing documents

    Electricity bills (MSEDCL, UGVCL, TANGEDCO, etc.), coal/coke invoices, natural gas bills, monthly production logs. No new systems for your team to learn.

  3. 03

    Emission calculation, India-specific

    Scope 1 (fuel combustion, process emissions) and Scope 2 (grid electricity) computed using EU-approved methodology and adjusted for your route and fuel mix.

  4. 04

    Supplier and precursor chase

    We chase your raw-material suppliers (pig iron, DRI, scrap, ferro-alloys) for precursor emission data — automated follow-ups in the supplier's language until every line is closed.

  5. 05

    EU XML, declarant handoff, verifier replies

    We generate the EU CBAM XML, coordinate with your buyer's Authorised Declarant, prep audit documents, and handle verifier queries. Your buyer relationship stays protected.

Free CBAM cost estimate

What will CBAM cost your shipments?

Pick your product, drop your number — a named CBAM expert sends your estimate on WhatsApp the same day, in your language. No forms, no software, no obligation.

Same-day reply
Hindi & English
Pre-verified by a top-3 EU auditor

Opens WhatsApp with your details pre-filled. Prefer to call? +91 76250 95885

Frequently asked

Steel CBAM, in plain English

Which steel products are covered under CBAM?

All iron and steel products under CN codes 72 (iron and steel) and 73 (articles of iron or steel) are covered. This includes pig iron, flat-rolled products (HR coils, CR sheets), bars and rods (TMT bars), wire rod, stainless steel, alloy steel, structural steel, pipes, tubes, fasteners (screws, bolts, nuts), and all other manufactured steel articles exported to the EU.

How are embedded emissions calculated for steel?

CBAM embedded emissions for steel include: (1) Direct emissions (Scope 1) from fuel combustion in blast furnaces, BOF, EAF, reheating furnaces, and boilers. (2) Indirect emissions (Scope 2) from grid electricity consumption. (3) Precursor emissions from raw materials like pig iron, DRI/sponge iron, or hot metal used as inputs. The calculation follows the EU methodology: total emissions divided by tonnes of product output, adjusted for precursor emission factors.

What is the CBAM cost for Indian steel exported to the EU?

At current EU ETS prices (~€80/tonne CO₂), Indian BF-BOF steel faces additional costs of €60-80 per tonne due to higher emission intensity compared to EU producers. For a typical exporter shipping 5,000 tonnes annually, using EU default values instead of verified actual data costs ₹1.5-3.5 crore in unnecessary additional CBAM tax. CarbonSettle helps save 30-40% by calculating and verifying your actual factory-level emissions.

Do sponge iron (DRI) producers need to comply with CBAM?

Yes. Sponge iron/DRI is a precursor product under CBAM. If your DRI is used to manufacture steel products exported to the EU, the emission data from DRI production must be included in the embedded emissions calculation. India is the world's largest sponge iron producer, and the Raipur-Durg belt has over 100 sponge iron plants whose emission data feeds into downstream steel CBAM calculations.

How does the steel production route affect CBAM liability?

The production route dramatically affects CBAM cost. BF-BOF (blast furnace) steel has the highest emissions at 2.2-2.8 tCO₂/tonne due to coal/coke usage. EAF (electric arc furnace) with scrap has lower emissions at 0.8-1.4 tCO₂/tonne, but Indian grid electricity (high coal share) pushes Scope 2 emissions up. Induction furnace steel falls in between. Knowing your exact route-specific emissions — not relying on defaults — is critical for minimizing CBAM costs.
Steel · 2–3 day onboarding

Your steel plant, CBAM-ready in two weeks.

CarbonSettle has helped 100+ Indian steel manufacturers across BF-BOF, EAF, DRI and induction routes. Get a free assessment — we'll show you the exact saving versus EU defaults, on your own numbers.

Or call us — +91 76250 95885