Most of the carbon footprint of steel produced in Türkiye is associated with exports, while the footprint of domestic steel consumption is largely linked to steel produced abroad.
A new report by the Sustainable Economy and Finance Research Association (SEFiA) shows that Türkiye’s steel-related carbon footprint extends far beyond production facilities and direct trade in steel. Despite being a major steel producer and exporter, Türkiye is a net importer of steel-related embedded emissions. According to the report, Türkiye’s net steel-related consumption footprint is 67% higher than its domestically generated production-chain emissions, while import-related emissions exceed export-bound emissions by 64%.
The report, Tracing the Carbon Footprint of Steel in Türkiye: Production, Consumption and Trade Linkages, examines the direct and supply chain emissions of steel production in Türkiye, the domestic and foreign production linkages underpinning domestic consumption, and the movement of steel through international trade. The study focuses on the manufacture of basic iron and steel and ferro-alloys (basic steel) and the reprocessing of secondary steel into new steel (secondary steel).
Based on 2022 data from the EXIOBASE multi-regional input–output database, the analysis also traces embedded emissions carried through the products of steel-using sectors, including automotive manufacturing, machinery and metal products. Embedded carbon refers to the CO₂ emissions generated at facilities and along supply chains during production, rather than to the physical carbon content of products.
According to the report, the total production-chain carbon footprint of steel produced in Türkiye is approximately 74 million tonnes of CO₂. Around 78% of this footprint arises outside steel facilities, during the production of electricity and other inputs.
The study’s key findings are as follows:
- Steel’s carbon footprint extends beyond production facilities: Direct emissions from steel facilities in Türkiye amount to approximately 16 million tonnes of CO₂, while purchased electricity accounts for approximately 11 million tonnes and other upstream supply chains for approximately 47 million tonnes. Around 64% of upstream supply chain emissions occur outside Türkiye.
- Decarbonising electricity systems and sourcing low-carbon inputs are critical for secondary steel: Approximately 83% of the emissions associated with electricity purchased by the steel sector are linked to secondary steel production. Around 84% of this production branch’s total footprint arises outside facilities’ direct operations. These findings show that, alongside facility efficiency, the electricity system and the conditions under which imported inputs are produced are important to the transformation of secondary steel production.
- Domestic production is export-oriented, while domestic consumption relies on imported steel: Approximately 63% of the carbon footprint of steel produced in Türkiye is directed towards foreign markets. By contrast, 67% of Türkiye’s gross steel consumption footprint of approximately 82 million tonnes of CO₂ is associated with imported steel production. This asymmetry shows that decarbonising domestic production needs to be complemented by improvements in the conditions under which imported steel is produced.
- Türkiye processes imported steel for re-export: One-third of the gross footprint of approximately 81 million tonnes of CO₂ associated with imported steel production reaching Türkiye is re-exported after passing through domestic production processes. These linkages are carried through exports of both steel products and products from sectors such as automotive manufacturing and fabricated metal products.
- The direct trading partner does not always indicate where steel was produced: Approximately one-quarter of imported steel linkages reach Türkiye through products from non-steel sectors. Because steel may arrive after being processed or incorporated into other products in additional countries, its production origin needs to be traced alongside the last supplier country.
The report emphasises that Türkiye’s steel decarbonisation strategy should address the transformation of production facilities, the supply of low-carbon electricity and inputs, and demand decisions in steel-using sectors together. Complementing emissions reductions in domestic production with improvements in the conditions under which imported inputs are produced is important for reducing the carbon footprints of both domestic consumption and exported products. Public procurement, long-term commitments to purchase low-carbon materials, material efficiency and reuse are among the tools that can support this transformation.
Bengisu Özenç, Director of SEFiA: “Although trade has traditionally been regarded as falling within the remit of the World Trade Organization (WTO), current debates clearly fall short of prioritising global climate goals. This demonstrates the need to place a consumption-based perspective and trade issues at the heart of international climate diplomacy, so that embedded emissions carried through cross-border value chains can be managed fairly and effectively. Our report highlights the urgent need to address these emissions more thoroughly and decisively in the design of national industrial and trade policies and in COP negotiations, in order to build national and global trade frameworks aligned with climate goals.”
Ayşe Ceren Sarı, Research Director at SEFiA: “To understand Türkiye’s position in steel-related carbon flows, we need to examine the connections extending from production facilities to global supply chains and final demand. Türkiye is a major steel producer and exporter, but the carbon footprint of domestic steel consumption is largely associated with steel produced abroad. At the same time, Türkiye processes imported steel within its own industries for export. This structure shows that decarbonisation requires strong coordination across climate, energy, industrial and trade policies. Particularly in secondary steel, realising the potential for low-carbon production is closely linked to access to low-carbon electricity and the conditions under which inputs are produced. We need to complement the transformation of domestic facilities with low-carbon sourcing and make the purchasing and material choices of steel-using sectors, from automotive manufacturing to construction, part of this transformation. Policy success should also be assessed through changes in the carbon footprints of production chains, consumption and trade, alongside reductions in facility emissions.”
Cankut Kaan Bolat, Senior Researcher at SEFiA: “The first sector to which a steel producer sells does not, on its own, reveal the demand that the steel ultimately serves. Steel sold to a manufacturer in Türkiye may subsequently be exported as part of a car or a machine. By tracing these intermediate production linkages, our study examines the product groups and categories of demand associated with steel’s carbon footprint. This allows us to see more clearly how sectors such as automotive manufacturing, machinery and fabricated metal products are connected to steel-related emissions. Through their decisions on material selection, product design and product lifetimes, these sectors can influence demand for steel and the footprint of its production chain. We therefore need to develop a shared information infrastructure that connects facility- and product-level emissions information with data on steel use across sectors. We should support producers and steel-using sectors in using this information to jointly assess material and design options in terms of the emissions reductions they could deliver across the production chain.”
