Turkey’s Steel Producers Association (TCUD) has voiced strong concern over the European Union’s upcoming Carbon Border Adjustment Mechanism (CBAM), warning that the carbon border levy, which took effect on January 1, 2026, together with proposed import quota restrictions expected later in the year, could pose a bigger threat to Turkey’s steel industry than Chinese overcapacity.

TCUD secretary general Veysel Yayan said the measures, linked to the EU Green Deal, could severely disrupt exports just as Turkey’s steel production and sales show signs of recovery, potentially bringing trade flows close to a standstill. He urged the government to adopt reciprocal measures and develop a balanced framework to protect domestic producers.

Turkey passed a climate law in July 2025 and plans to launch a pilot national emissions trading system in 2026, but the scheme remains at an early stage and is not yet fully aligned with EU carbon pricing standards. 

Meanwhile, the European Commission has proposed cutting duty-free steel import volumes by up to 47% to 18.3 million tons per year. Turkey exported 4.63 million tons of steel to the EU in 2024, worth €3.5 billion. The reduced quota will significantly impact Turkey's exports.