CBAM Steel Default Values: 2.18 tCO2/t and What That Costs You
CBAM default values apply automatically when a non-EU producer cannot supply verified actual embedded emissions data. For the integrated steel CN codes, the default is 2.18 tCO2e per tonne of steel — set by the European Commission at the 90th percentile of EU production. At the current ETS price band, that default value carries a CBAM cost of approximately EUR 142 per tonne of steel imported into the EU. This page explains the default values, how they were set, and what they mean financially.
CBAM Steel Default Values by CN Code
| CN code | Description | Default value (tCO2e/t) |
|---|---|---|
| 7203 | Direct reduced iron (DRI) | 1.50 |
| 7206 / 7207 | Iron and non-alloy steel ingots, semi-finished | 2.18 |
| 7208–7212 | Flat-rolled products | 2.18 |
| 7213–7215 | Bars and rods | 2.18 |
| 7216–7218 | Angles, shapes, sections; stainless ingots | 2.18 |
| 7219–7222 | Stainless flat and bar products | 2.18 |
| 7223–7229 | Wire of steel and stainless | 2.18 |
| 7301–7308 | Steel sections and structures | derived from precursor |
Default values are kept under review and can be updated. Always check the current published values before filing a declaration.
How CBAM Default Values Are Set
CBAM default values are derived from EU production data, set at the 90th percentile of the embedded emissions distribution among EU producers in the relevant sector. The 90th percentile means that 90% of EU production has lower embedded emissions than the default value — the default is deliberately positioned to be punitive for non-EU producers without verified actuals.
The methodology is set out in the CBAM benchmark calculation guide. The practical effect: if your actual embedded emissions are at or below the global average for your production route, your saving from documenting actuals will be substantial.
What CBAM Steel Default Values Cost in Euros
Cost per tonne of steel imported under default values, at the current EU ETS price band:
| ETS price (EUR/tCO2) | CBAM cost per tonne of steel at 2.18 default |
|---|---|
| EUR 50 | EUR 109 |
| EUR 65 | EUR 142 |
| EUR 80 | EUR 174 |
| EUR 100 | EUR 218 |
For an exporter shipping 100,000 tonnes per year, the difference between defaults and actuals can be EUR 8–15 million annually depending on production route. At larger volumes (500,000+ t/year), the annual saving from documenting actuals routinely exceeds EUR 50M.
Replacing Default Values with Verified Actuals
To replace the default value with your installation's actual embedded emissions, you need:
- A CBAM-compliant calculation per Annex III methodology. See the CBAM steel calculation guide.
- Verification by an ISO 14065 accredited body. See the accredited verifiers list by country.
- A durable record the EU buyer can cite in their declaration and that EU customs can audit for the retention period. Store the verified record with a permanent vault URL.
Frequently Asked Questions
What is the CBAM default value for steel?
2.18 tCO2e per tonne for the integrated steel CN codes (7206–7229). The DRI default is 1.50 tCO2e/t under CN code 7203. These defaults are set by the European Commission at the 90th percentile of EU production.
What does the 2.18 default cost in EUR per tonne?
At the current EU ETS price band (~EUR 65/tCO2), the CBAM cost is approximately EUR 142 per tonne of steel imported. At EUR 100/tCO2 (a level the ETS may reach by 2027–2028), the cost rises to EUR 218 per tonne.
Can I use a sector average instead of the EU default?
No. Under current CBAM rules, only verified installation-specific actual values can replace EU default values. Sector averages from third-party publications are not accepted by EU customs.
Are CBAM default values the same as EU ETS benchmark values?
No. EU ETS benchmarks are used to allocate free allowances within the ETS and are typically more lenient. CBAM default values are punitively set at the 90th percentile of EU production — significantly higher than ETS benchmarks. See the benchmark calculation guide.
How often are CBAM default values updated?
The European Commission reviews default values periodically and updates them via implementing acts. Producers and declarants should check the current published values before each quarterly report and annual declaration.
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