How does the EU CBAM classify steel production routes?

Under Commission Implementing Regulation (EU) 2025/2621, steel is classified into Route C (Blast Furnace - Basic Oxygen Furnace), Route D (Direct Reduced Iron - Electric Arc Furnace), Route E (Scrap-fed Electric Arc Furnace), and alloyed variants (Routes F, G, H, J).

What precursors are required for CBAM steel declarations?

Under Annex III §3.2, steel producers must account for embedded emissions in pig iron (CN 7201), direct reduced iron (CN 7203), crude steel ingots (CN 7206), and ferro-alloys if consumed during manufacturing.

Annex I Sector Guide

EU CBAM Compliance for Iron & Steel Exporters

Master the official EU route taxonomy (Routes C, D, E), precursor accounting boundaries, and statutory default penalties (+10% in 2026, +20% in 2027, +30% in 2028) under Commission Implementing Regulation (EU) 2025/2621.

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Official Production Route TaxonomyIR 2025/2621

Route C (BF-BOF): Integrated blast furnace & basic oxygen furnace route consuming iron ore, coking coal, and limestone. Highest statutory default factor.
Route D (DRI-EAF): Direct reduced iron (gas or coal based) melted in electric arc furnaces.
Route E (Scrap-EAF): Circular scrap-fed electric arc furnace route with substantially lower Scope 1 emissions.
Routes F / G / H / J: Specialized routes for low-alloy and high-alloy stainless steel lines.

Mandatory Precursor AccountingAnnex III §3.2

When calculating Specific Embedded Emissions (SEE) for finished steel products, plants must aggregate upstream emissions from:

CN 7201 (Pig Iron)CN 7203 (Direct Reduced Iron)CN 7202 (Ferro-Alloys)CN 7206 / 7207 (Crude Steel & Billets)

Compliance Rule: Unverified supplier precursor data triggers mandatory EU statutory default mark-ups on the precursor mass.

Covered Iron & Steel Combined Nomenclature (CN) LinesTariff Directory

Select any CN code below to inspect its dedicated regulatory reference dossier with statutory gazette values and country comparison benchmarks.

CN Code	Commodity Description	Applicable EU Routes	2026 Statutory Default	Dossier Link
CN 7208	Hot-Rolled Flat Products of Non-Alloy Steel	Route C (BF-BOF) / Route D (DRI-EAF) / Route E (Scrap-EAF)	2.662 tCO₂e/t	View Dossier →
CN 7207	Semi-finished Products of Iron or Non-Alloy Steel (Billets/Slabs)	Route C / D / E	2.442 tCO₂e/t	View Dossier →
CN 7209	Cold-Rolled Flat Steel Products	Route C / D / E	2.816 tCO₂e/t	View Dossier →
CN 7210	Coated & Galvanized Steel Sheet	Route C / D / E	3.014 tCO₂e/t	View Dossier →
CN 7213	Hot-Rolled Steel Wire Rod in Coils	Route C / D / E	2.596 tCO₂e/t	View Dossier →
CN 7214	Other Bars & Rods of Iron or Non-Alloy Steel (TMT/Rebar)	Route C / D / E	2.530 tCO₂e/t	View Dossier →
CN 7216	Angles, Shapes & Sections of Iron or Non-Alloy Steel	Route C / D / E	2.640 tCO₂e/t	View Dossier →
CN 7304	Seamless Tubes, Pipes & Hollow Profiles of Steel	Route C / D / E	3.102 tCO₂e/t	View Dossier →
CN 7306	Other Tubes, Pipes & Hollow Profiles (Welded)	Route C / D / E	2.948 tCO₂e/t	View Dossier →
CN 7308	Structures & Parts of Structures of Iron or Steel	Route C / D / E	3.234 tCO₂e/t	View Dossier →

Exporting steel to the European Union?

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