The first session of the meeting titled “Green Transformation and Competitiveness in the Stainless Steel Sector: CBAM, Standards, and Production Capacity”, organized by the **Stainless Steel Industry Association (PASSAD), was held hosted by the Ankara Chamber of Industry.
The first session, titled “Stainless Steel in the Green Transformation Process: CBAM, Sustainability, and Public Policies”, was moderated by PASSAD Board Advisor Dr. Erol Metin. The speakers included Ahmet Türkaraslan, Head of the Metal Industry and Critical Materials Department at the Ministry of Industry and Technology of Turkey; Arif Çağrı Özer, General Manager of Cronimet Turkey; and Dr. Kübra Akben, Faculty Member at Yeditepe University.
Evaluations made during the meeting highlighted that green transformation in the stainless steel sector is no longer optional; it has become a decisive necessity in terms of cost, competitiveness, and market access.
“Green Transformation Is No Longer a Matter of the Future, but of Today”
Ahmet Türkaraslan emphasized that the era of saying “green transformation is coming” is over, noting that the Carbon Border Adjustment Mechanism (CBAM) came into effect on January 1, 2026, from a financial liability perspective.
Stating that the EU’s CBAM is no longer just a statistical reporting process but a tangible cost item on balance sheets, Türkaraslan highlighted that the Turkish steel sector closed 2025 with increased production, surpassing Germany to become the largest producer in Europe and the seventh largest in the world. He assessed this performance as an indicator of the sector’s resilience to crises and operational agility.
Türkaraslan noted that the Iron-Steel Sector Low Carbon Roadmap, prepared by the Ministry, serves as a vital compass for the sector. In particular, the Low Carbon Pathway (LCP) scenario stands out as an optimized model. He reminded that the ultimate goal is net-zero emissions by 2053, emphasizing that full integration of green hydrogen and carbon capture technologies is essential to reach this target.
To implement the LCP scenario, a total investment of $31.4 billion will be required by 2053. To meet this financing need, the Turkey Industrial Decarbonization Investment Platform (TIDIP) has been launched, aiming to mobilize €5 billion in resources.
“We Must Compete Using Our Own Data, Not Default Emission Values”
Türkaraslan stressed that default emission values set by the European Commission under CBAM may not reflect the actual performance of each facility. He noted that if electric arc furnace (EAF) facilities do not document their low-carbon production advantages with accurate data, the system will operate using higher default values.
He explained that a facility producing with 0.6–0.7 tons of emissions per ton in an electric arc furnace could be calculated based on the 2.3-ton default value if it fails to report and verify data. This could create significant differences in carbon costs and a serious competitive disadvantage for a sector operating on thin profit margins.
He emphasized the critical importance of strengthening data collection, monitoring, reporting, and verification infrastructure in line with international standards.
Türkaraslan also highlighted that stainless steel is an indispensable input for many critical sectors, from defense to energy, medical to automotive. He stated that the Turkish stainless steel sector has an economic scale of around $5 billion and an annual consumption of approximately 450,000 tons, much of which is currently met through imports. The main goal for 2026 and beyond is to ensure that this critical input reaches industrial users safely and sustainably, unaffected by global supply chain disruptions.
Cronimet: “Sustainability Is Also Economically Viable”
Arif Çağrı Özer evaluated sustainability both from the sectoral perspective and from the viewpoint of a Europe-based company.
He pointed out that stainless steel’s greatest advantage is its recyclability, noting that this material, invented in the early 1900s, contributed to the circular economy even before the concept of sustainability existed.
Özer explained that Cronimet addresses sustainability in two main areas: responsibility and economic viability. He emphasized that true sustainability emerges at the intersection of these areas. While the carbon tax represents a significant cost factor, sustainability is not limited to carbon; it also includes ethical values, human rights, labor rights, and sustainable supply chains as part of a holistic approach.
As a Germany-based metal trading and recycling company, Cronimet supplies about 1.5 million tons of stainless steel annually to producers as raw material. Being at the lowest tier of the supply chain exposes them to intense scrutiny regarding carbon footprint and transparency.
Özer noted that they actively participated in EU Council working groups during the CBAM process and emphasized the need for carbon measurement to be transparent, measurable, and traceable. Systems like **EcoVadis** evaluate companies across Scope 1, Scope 2, and Scope 3 emissions. Cronimet voluntarily completed its measurements in 2024 and published its first global sustainability report in 2025.
He stated that, in line with the 2034 and 2050 targets, the company aims to reduce its carbon footprint close to zero and that sustainability is no longer a trend but a requirement for corporate existence.
From the Paris Agreement to Turkey’s Climate Law
Dr. Kübra Akben outlined the global climate framework. She noted that the Paris Agreement came into force in 2016, while Turkey ratified it in 2021, and that the 2053 net-zero emission target is defined within this framework.
Akben stressed that the Paris Agreement transformed carbon emissions from an environmental issue into a commercial parameter. Under the EU Emissions Trading System (ETS), each ton of CO₂ equivalent requires a permit, creating a carbon market.
To balance carbon costs in the internal market, the EU implemented the CBAM. Since over 40% of Turkey’s exports go to the EU, carbon costs directly affect Turkey.
She explained that with the Climate Law No. 7552, effective July 2025, Turkey aims to establish a national carbon market. Facilities emitting 500,000 tons of CO₂ equivalent or more annually will fall under the Emissions Trading System, and obtaining emission permits and conducting monitoring, reporting, and verification will be mandatory.
Initially, allocations will be mostly free, but from 2028 onwards, free allocations will be gradually reduced. Turkey’s Sustainability Reporting Standards (TSRS) have been introduced, making reporting mandatory for companies meeting certain threshold criteria.
Akben noted that the EU ESRS regulations cover the entire value chain, including Scope 3, requiring monitoring of all processes. Companies unable to comply risk fines, compensation liabilities, and loss of access to the EU market.
The first session of the meeting concluded by showing that green transformation in the stainless steel sector is not just an environmental agenda but a multidimensional process encompassing investment, financing, data management, and global competitiveness.
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