As part of the "Decarbonization of Turkey's Steel Industry" project coordinated by the Istanbul Policy Center, representatives from industry, government agencies, researchers and participants from steel consuming industries gathered for the "Turkey Steel Industry Network Work Program Information Session". Topics discussed during the meeting included the European Union's Carbon Border Mechanism (CBAM), low-emission steel definitions, green steel standards, financing challenges and the industry's transformation process.
Speaking at the opening of the meeting, project coordinator Dursun Baş from the Istanbul Policy Center said that the Decarbonization of the Turkish Steel Industry project, which began in June 2022, will complete its fourth year in June 2026, initially targeting crude steel producers in Turkey. Bash explained that the project involves not only steel producers, but also government agencies, industry associations, financial institutions and steel consuming sectors through joint efforts. He stressed that it is not just the crude steel producers who are responsible for decarbonizing the sector, and said this transformation needs to be addressed together with the energy, natural gas, logistics, finance, public policy and steel consuming sectors. Noting that the Turkish steel industry's emissions burden does not only come from integrated plants, Bas said that electric arc furnace plants also generate significant indirect emissions due to high electricity consumption. He also noted that emissions arising from the use, transportation and logistics of natural gas are also significant.
Confirmed emissions data and financial pressure mark a new stage
Speaking during the meeting, Muammer Bilgic, member of the executive board of Bilecik Demir A.
Ş., said that the emission targets and reference values announced by the EU under CBAM mark the beginning of a new era for the sector. Bilgic noted that previously companies were assessed based on indicators that they determined themselves, but now the basis will be verified emissions data. He emphasized that companies are now considered green only to the extent that they have proven values. Bilgić also noted that electric arc furnace-based facilities may not be as profitable as previously thought, noting that under CBAM, electric arc furnace-based facilities and oxygen furnace-based facilities
