According to a document prepared by the Turkish Steel Transformation Network at the Istanbul Policy Center (IPC), Turkey's Sectoral Investment Plan for Thematic Transformations in the Ferrous Metallurgy Industry provides a positive basis for assessing short-, medium- and long-term technological directions, but requires significant improvements in areas such as emissions data, financing, and scrap disposal., low carbon steel demand and regulatory regulation. politics.
The document, based on the results of four years of IPC field research and discussions held at the workshop on August 19, 2026, casts doubt on the carbon intensity of 1.8 million tons of CO₂ equivalent per ton of crude steel used in the investment plan. Based on enterprise-level sustainability reports, IPC estimates the average carbon intensity at 2.2-2.5 million tons of CO₂ equivalent per ton of steel for integrated plants and 0.4-0.6 million tons of equivalent per ton of crude steel for electric arc furnace installations. Considering that the production of EDP accounts for 72-75% of steel produced in Turkey, the document suggests a national weighted average of 1.0-1.2 million tons of CO₂ equivalent per ton of steel produced.
Decarbonization of steel should go beyond the requirements CBAM
The document argues that the rationale for decarbonizing the steel sector should not be based primarily on compliance with the EU Carbon Boundary Regulation Mechanism (CBAM). He recommends taking into account the potential limits of carbon mechanisms in other countries and the possible Turkish mechanism, while paying more attention to zero targets, phasing out fossil fuels and resource efficiency.
Along the path of technology, the investment plan provides for a transition from efficiency gains and chipboard improvements towards natural gas-based direct iron reduction, hydrogen-based DRI and carbon capture, utilization and storage. While the IPC generally supports this concept, it calls into question the effectiveness of hydrogen-based DRI as an immature technology. According to the document, the main obstacles are access to a large amount and inexpensive electricity from renewable sources and reducing the cost of hydrogen to below 1.20 долл./кг.
It is recommended to give preference to investments with proven эффективностью
The document recommends giving preference to limited concessional financing of investments in proven energy and material efficiency and cyclicity, rather than pilot and demonstration projects. It also proposes to define "decarbonization investments" as investments that provide a tangible reduction in emissions compared to existing levels without increasing production capacity. Electrification of high-temperature industrial process heat should also be included as a separate investment area.
IPC also questions the consideration of imported DRI and HBI as a source of low-carbon raw materials in the investment plan. According to the data provided by the life cycle assessment, emissions from the production of DRI based on natural gas may approach emissions from integrated production of cast iron and steel, in At the same time, the emission intensity at existing DRI plants in the Persian Gulf region and North Africa is approximately twice as high as in the production of EDP from scrap metal. Accordingly, imported DRI and HBI should not be automatically classified as low-carbon materials. Instead, verified monitoring, reporting, and verification data should be required from specific vendors..
The document claims that DRI and HBI will become truly low-carbon alternatives in combination with hydrogen produced using renewable electricity. Until then, imports should be considered as a strategic initial step or a testing platform, rather than a substitute for domestic investment.
A special recycling program is offered лома
Scrap management is identified as another serious shortcoming of the investment plan. Turkey imports about 70-75% of the scrap consumed by its steel industry, exposing manufacturers to global supply chain risks and differences in scrap quality. Internal problems include insufficient separation of waste at source, mixing of clean and contaminated scrap, insufficient quality control and traceability, and widespread informal activities.
Thus, the document proposes to create a special program for the transformation of the waste ecosystem. This will include a national scrap inventory, standards for various grades of scrap, a nationwide monitoring system, measures to reduce informal activities, and the transition of unregistered operators to organized industrial zones or licensed facilities. Financing mechanisms should also cover ore and scrap suppliers, while inputs should have their own technological path within the investment plan.
Calls for the development of policies that stimulate demand for low-carbon energy сталь
IPC claims that the investment plan focuses mainly on production and supplies, while insufficient attention is paid to the demand for steel. The document calls for detailed data on steel consumption in construction, infrastructure, automotive, household appliances, mechanical engineering and other manufacturing industries, as well as forecasts of Turkey's steel needs for the next decade.
According to the IPC study, low carbon steel has not yet become a significant product priority for steel consuming industries in Turkey. The document recommends the development of a national definition and technical standards for low carbon steel and demand support through green government procurement, carbon labeling of products, and systematic emission requirements within Scope 3, especially in the automotive and home appliance sectors.
The mandatory achievement of the 2030 emissions target and the ETS schedule are required. Турции
The document also raises questions about the approximately $250 million in concessional financing provided for six priority sectors, in which It is said that the criteria for the allocation of financing between sectors and individual companies remains unclear. This requires disclosure of the amount allocated specifically for the steel industry and its distribution among various technological areas. Financial institutions involved in the consultation process have reportedly indicated that steel producers are showing limited demand for bank financing for investments other than renewable energy, including waste heat recovery, material efficiency, and digitalization. The IPC recommends determining whether this reflects the financial costs or investment priorities of companies. The document also calls for the adoption of legislation regulating the transportation and storage of hydrogen and the risks of major industrial accidents, in accordance with relevant legislation. ЕС.
The lack of a binding and measurable national target to reduce industrial emissions and the fact that emissions Trading systems in Turkey that have not yet been implemented have been identified as serious shortcomings. The IPC calls for a mandatory target for reducing CO₂ emissions for the steel sector by 2030, an ETS implementation schedule for Turkey, and an annual industry carbon budget. It also recommends the development of a legally sound industrial decarbonization policy and a roadmap defining the year in which greenhouse gas emissions from the steel sector should peak, and setting targets for 2030 and 2050.
Emissions data at the installation level should be more accurate прозрачными
The document highlights the shortcomings in integrated environmental permits and access to emissions data at the plant, production and capacity levels. It recommends making access to financing conditional on disclosure and independent verification of data on greenhouse gas and other pollutant emissions, as well as strengthening measures on emissions and transfer of pollutants in Turkey. Регистр.
Other findings include slow technological transformation, insufficient institutional capacity and cooperation between the public and private sectors, weak domestic demand for low-carbon steel, dependence on fossil fuels for electricity generation, dependence on imported scrap, and insufficient interaction between steel producers and local communities. In particular, the document calls for the transformation of coal-fired and natural gas-fired power plants associated with steel producers, which should be taken into account in the investment plan, and recommends setting a national target to reduce emissions from electricity generation, expressed in kilograms of CO₂ equivalent per kilowatt hour.
In conclusion, the IPC recommends the preparation of a comprehensive national restructuring and modernization plan for the steel sector and the creation of a decarbonization platform for the industry with the participation of government agencies, companies, trade unions and civil society organizations. Investment and technological support should be linked to specific commitments to reduce emissions. The document also calls on all producers to calculate and disclose their emissions in volume 1 and volume 2 using a single methodology. This data should be available through a publicly accessible, traceable and verifiable national greenhouse gas information system integrated with the pollutant release and transfer registry and infrastructure. environmental declaration of products.
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