CBAM for Steel Exporters
in India
India exports over $5 billion of iron and steel to the EU annually. From January 2026, every tonne requires verified emission data under CBAM. This guide covers everything Indian steel manufacturers need — CN codes, BF-BOF vs EAF emissions, default values, penalties, and how to save 30–40% on carbon tax.
Steel Products Covered Under CBAM
If your product falls under any of these CN codes and is exported to the EU, CBAM compliance is mandatory from January 2026.
| CN Code | Product Category | CBAM Risk |
|---|---|---|
| 7206–7207 | Pig Iron & Spiegeleisen | High |
| 7208–7212 | Flat-Rolled Steel (Hot & Cold) | High |
| 7213–7215 | Bars, Rods & Wire Rod | High |
| 7216–7217 | Angles, Shapes & Wire | Medium |
| 7218–7223 | Stainless Steel Products | High |
| 7224–7229 | Alloy Steel Products | Medium |
| 7301–7307 | Structural & Pipes/Tubes | High |
| 7318 | Fasteners (Screws, Bolts, Nuts) | Medium |
Emission Intensity by Production Route
Your production method determines your CBAM liability. Indian BF-BOF steel has significantly higher emissions than the EU average — but using verified actual data instead of EU defaults saves crores.
All values in tCO₂ per tonne of crude steel. Savings calculated per 1,000 tonnes at ~€80/tonne CO₂.
| Production Route | India Typical | EU Average | EU Default Value | Savings with Actuals |
|---|---|---|---|---|
| BF-BOF (Blast Furnace) | 2.2–2.8 | 1.4–1.8 | 3.5+ | ₹56–80 lakh |
| EAF (Electric Arc Furnace) | 0.8–1.4 | 0.3–0.5 | 2.0+ | ₹48–72 lakh |
| DRI/Sponge Iron + EAF | 1.8–2.4 | 1.0–1.2 | 3.0+ | ₹40–64 lakh |
| IF (Induction Furnace) | 1.2–2.0 | 0.5–0.8 | 2.5+ | ₹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 — far higher than even Indian actuals. A typical Indian BF-BOF plant emitting 2.5 tCO₂/tonne would pay based on 3.5+ tCO₂/tonne under defaults — an overpayment of ₹56–80 lakh per 1,000 tonnes. CarbonSettle calculates your verified actual emissions from existing factory documents.
Major Indian Steel Hubs Affected
CarbonSettle serves steel manufacturers across all major Indian steel clusters. We understand region-specific production methods, fuel mixes, and grid emission factors.
Jamshedpur-Bokaro Belt
Very High RiskJharkhand
Integrated steel (Tata Steel, SAIL BSL)
Raipur-Durg-Bhilai
Very High RiskChhattisgarh
Sponge iron, TMT bars, wire rods
Bellary-Hospet
High RiskKarnataka
Iron ore, pig iron, steel ingots
Durgapur-Asansol
High RiskWest Bengal
Alloy steel, ferro-alloys
Salem
High RiskTamil Nadu
Stainless steel, cold-rolled sheets
Visakhapatnam
High RiskAndhra Pradesh
RINL/Vizag Steel primary steel
Ludhiana
Medium RiskPunjab
Re-rolled steel, fasteners, auto parts
Nagpur-Butibori
Medium RiskMaharashtra
Steel wire, fasteners, auto parts
Step-by-Step Steel CBAM Compliance
CarbonSettle's end-to-end service handles every step. You share factory documents — we deliver EU-ready verified reports.
Factory Boundary Mapping
We map your steel production process — blast furnaces, BOF/EAF, reheating furnaces, casting, rolling mills — to identify all emission sources per CBAM methodology.
Data Collection
Share electricity bills (MSEDCL, UGVCL, TANGEDCO, etc.), coal/coke purchase invoices, natural gas bills, and monthly production logs. We work with your existing documents — no new systems needed.
Emission Calculation
Our experts calculate Scope 1 (fuel combustion, process emissions) and Scope 2 (grid electricity) emissions using EU-approved methodologies, adjusted for your specific production route and fuel mix.
Supplier Data & Precursors
We chase your raw material suppliers (pig iron, DRI, scrap, ferro-alloys) for precursor emission data. Automated follow-ups and verification calls until every supplier responds.
EU Report & Importer Handoff
We generate the EU CBAM XML report, coordinate with your EU buyer's Authorised Declarant, prepare audit documentation, and handle verifier queries. Your supply chain relationship stays protected.
Frequently Asked Questions
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.
Get Your Steel Plant CBAM-Ready in 2–4 Weeks
CarbonSettle has helped 100+ Indian steel manufacturers get CBAM compliant. We understand BF-BOF, EAF, DRI, and induction furnace operations. Get a free assessment — we'll show you exactly how much you can save with actual emission data.
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