The EU’s Carbon Border Adjustment Mechanism (CBAM) marks a major shift in how steel is priced and traded in Europe. For the first time, imported steel will carry a carbon cost equivalent to that faced by European producers under the EU Emissions Trading System (EU ETS).

For 7 Steel, this is a positive and necessary step toward a fair, transparent and sustainable steel market.

What CBAM Means
From 1 January 2026, importers of steel into the EU began paying for the CO₂ emissions embedded in their products. The mechanism is phased in gradually and will reach full implementation in 2034.
Norway will start applying CBAM on 1 January 2027.

The objective is simple:
ensure a level playing field between European steel producers and non-EU imports.

Why It Matters for the Market
CBAM will significantly change the cost structure of imported steel:

• Imports with high carbon emissions will become more expensive
• Products without verified emissions data may face even higher default costs
• The EU carbon price is expected to rise further toward 2030

As a result, the competitive gap between high-emission imports and low-emission European steel will narrow substantially.

A Structural Advantage for 7 Steel
7 Steel is already well positioned for the transition to CBAM.
Our production is built on the following key strengths that consistently deliver low-carbon steel:

• 100% scrap-based steel production, reducing the need for virgin raw materials.
• Hydropower as our primary energy source, providing renewable electricity with a low carbon footprint.
• Electric Arc Furnace (EAF) process with Best Available Technology (BAT), ensuring highly efficient scrap melting with significantly lower emissions than traditional blast furnace production.
• Revalorization of byproducts to be used as alternative energy sources.

Together, these factors result in substantially lower embedded CO₂ emissions compared with conventional steelmaking.

This gives 7 Steel three clear advantages under CBAM:

• Lower carbon footprint – Our products inherently carry lower embedded emissions.
• Reduced exposure to carbon costs – Lower emissions translate directly into lower CBAM and EU ETS costs.
• Stronger competitiveness – As CBAM is phased in, high-emission imports become relatively more expensive, increasing the competitiveness of low-emission European steel.

Driving Transparency and Sustainability
CBAM also introduces stricter requirements for emissions reporting and verification across the value chain. This aligns closely with 7 Steel’s commitment to:

• Transparent environmental data
• Responsible sourcing
• Continuous reduction of carbon intensity

Looking Ahead
While some uncertainties remain, such as future carbon prices and verification frameworks, the long-term direction is clear: The European steel market will increasingly reward low-emission, locally produced steel.

For 7 Steel, CBAM is not just a regulatory change.
It is a strategic validation of our production model and our sustainability ambitions.