The integrated route makes steel from iron ore with coke — carbon is the chemical reductant, so ~90% of emissions are locked into the blast furnace/BOF process until the route itself changes (scrap-EAF or hydrogen DRI). That makes BF-BOF the single largest CBAM-exposed product category by volume.
| Year | Free allocation (EU) | Payable carbon cost | Annual bill (per 100,000 t steel) |
|---|---|---|---|
| 2026 | 97.5% | €3.68 / t steel | €367,650 |
| 2030 | 51.5% | €71.32 / t steel | €7,132,410 |
| 2034 | 0.0% | €147.06 / t steel | €14,706,000 |
At EUA €77.4 (11 Jun 2026) and ≈1.9 t CO2/t steel (worldsteel/IEA integrated route 1.8–2.2). EU ETS industry schedule; exporters under CBAM follow the mirrored phase-in. Power sectors pay 100% from day one.
Indicative reduction potential of each measure against the relevant emissions share (sources: IEA industry roadmaps, sector associations — see each measure page). Measures stack but don't simply add.
While the route transition is financed, the now-money sits in heat: hot-blast stoves, steam systems, ladle preheating and the powerhouse all lose recoverable heat through bare valves and fittings. Integrated mills routinely show hundreds of uninsulated components per site survey — 2–4% of site fuel at <2-year payback, which at 1.9 t CO2/t steel is real CBAM tonnage.
Method: ASTM C680 / ISO 12241 surface energy balance — the same engine as our public calculators. Typical removable-insulation effect across hot-process plants: 2–5% of fuel-related CO2, payback up to 2 years.
Direct-emission intensities, typical published values per industry page — units differ by product; see each page for sources.
