The steel sector is a cornerstone of Türkiye’s industrial economy, supplying critical inputs to the construction, manufacturing and infrastructure sectors while serving as one of the country’s flagship export industries. As a hard-to-abate sector, steel plays a central role in both industrial competitiveness and climate action. The sector is also highly exposed to evolving international trade and climate policies, including the EU Carbon Border Adjustment Mechanism (CBAM), making decarbonisation an increasingly important factor in maintaining access to key export markets.

Türkiye is among the world's leading steel producers, ranking eighth globally with 35.1 million tonnes of crude steel production in 2022. A distinctive feature of the Turkish steel industry is its high share of electric arc furnace (EAF) production, with 71.6% of crude steel output originating from EAF and induction furnace facilities. This production structure provides a comparative advantage in the transition to lower-carbon steelmaking, as EAF-based production generally has lower carbon intensity than conventional blast furnace routes. At the same time, the sector faces challenges related to emissions, energy supply, raw material imports and the need for long-term technological transformation to support Türkiye’s climate and industrial objectives.

The steel sector low-carbon pathway sets out a roadmap toward low-emission steelmaking, addressing energy efficiency, scrap-based electric arc furnace production, and the longer-term shift toward hydrogen-based and other low-carbon production routes.

For more information about the Low-Carbon Pathway for the Steel Sector in the Republic of Türkiye, here.