Steel exports to France are facing increasing pressure from the EU’s green transition. As a leader in European environmental policy, France not only implements the EU’s unified carbon border adjustment mechanism but also promotes stricter carbon emission standards domestically. As a high-carbon industry, how to build an efficient and economical logistics system while meeting the requirements of “green tariffs” has become a strategic issue that exporters must address.
Part 1: Core Green Tariff Policies of France and the EU
- EU Carbon Border Adjustment Mechanism
Implementation Time: Trial operation in October 2023, full implementation in 2026
Coverage: Steel (including iron, steel, ferroalloys, and some steel products) is one of the first five industries included.
Core Mechanism:
Importers need to purchase CBAM certificates, with prices linked to the EU Emissions Trading System.
Number of Certificates = Implicit Carbon Emissions of Imported Products × (EU Carbon Price – Carbon Price Paid by Country of Origin)
Certified carbon emission data, including direct and indirect emissions, must be submitted.
- Supplementary Carbon Pricing Measures in France
National Low-Carbon Strategy: Sets more aggressive emission reduction targets than the EU.
Industry Green Standards: Sets carbon footprint thresholds for steel used in public procurement and large infrastructure projects.
Advance Adaptation Requirements: French importers may require suppliers to provide data compliant with CBAM requirements in advance.
Part 2: Calculation of Carbon Emissions and Cost Impact of Steel Transportation
- Trends in Including Transport Emissions in CBAM
Current Regulations: CBAM currently primarily targets emissions from the production process.
Future Expansion: The EU has initiated research to include transport emissions in CBAM, with implementation expected before 2030.
French Priority Pressure: France may be the first to require full life-cycle carbon footprint reporting in certain sectors.
- Comparison of Carbon Emission Intensity Between Different Transport Modes
Transport Mode | Carbon Emission Coefficient (g CO₂/ton-km) | Typical Carbon Emissions from China-France (tons)
Traditional Sea Freight | 10-20 | 30-60 (Shanghai-Le Havre)
Sea-Rail Intermodal Transport | 8-15 | 24-45
Sea-Truck Intermodal Transport | 60-150 | 180-450
All-Railway | 18-35 | 54-105 (China-Europe Railway Express)
Air Freight | 500-1000 | 1500-3000
- Analysis of the Impact of Carbon Costs on Total Freight Costs
Current Impact: Transportation carbon emissions are not yet directly included in CBAM, but they affect a company’s total carbon footprint.
Future Forecasts: If transportation emissions are included, the additional costs for ocean freight will increase by approximately 3-8%, rail by 2-5%, and road by 15-30%.
Hidden Costs: High-carbon-emission transportation may affect a product’s green rating and disqualify a company from bidding on high-end projects.
Part Three: Multimodal Transport Optimization Solutions for France
- Comparison of Core East-West Corridors
Solution A: Traditional Direct Sea Freight
Shanghai/Ningbo → Le Havre/Marseille (30-35 days)
- Higher carbon emissions but lowest cost
- Suitable for bulk general materials
- Last-mile delivery requires additional arrangements
Solution B: Sea-Rail-Europe Intermodal Transport
China Port → Rotterdam/Hamburg → French Railways (28-32 days)
- Carbon emissions reduced by 20-30%
- Utilizes Europe’s efficient railway network
- Option C: Direct China-Europe Railway Express
China → Duisburg/Lyon (18-22 days) - Stable delivery time, moderate carbon emissions
- One-stop service, reducing transshipment
- Higher cost, limited capacity
Option D: Coastal + Short-haul delivery
China port → Southern European port → French coastal delivery (25-30 days)
- Avoids congested hubs
- Flexible response to demand fluctuations
- Lower route frequency
- Low-carbon delivery network within France
Railway priority strategy:
Utilize the French SNCF railway network, especially the dedicated steel train from Le Havre/Fos to Lyon/Paris
Nighttime rail delivery, reducing daytime road congestion
Inland waterway utilization:
The Seine River connects Le Havre and the Paris region
The Rhône River serves the southern industrial area
Last mile optimization:
Electric/hydrogen truck pilot projects
Nighttime delivery and shared delivery centers
- Digital Green Logistics Platform
Carbon Emission Visualization System: Real-time monitoring of carbon emissions at each stage
Intelligent Route Optimization: Balancing timeliness, cost, and carbon emissions
Electronic Documents and Blockchain: Reducing paper processes and increasing transparency
Part Four: Comprehensive Response Strategies and Implementation Path - Phased Implementation Roadmap
Phase One: Data Preparation (6 months)
Establish a product carbon footprint accounting system
Map the existing logistics chain carbon emission baseline
Select French green logistics service providers
Phase Two: Pilot Optimization (12 months)
Select 1-2 routes for multimodal transport pilot projects
Obtain the certification data required by CBAM
Build a low-carbon delivery process with French partners
Phase Three: Full Implementation (24 months)
Promote the best routes to major product lines
Achieve a 20% reduction in transportation carbon emissions
Obtain French low-carbon product certification - Supply Chain Collaborative Innovation
Moving Inventory Forward: Establishing green bonded warehouses in France or neighboring countries
Modular Design: Optimizing steel component dimensions to improve loading efficiency
Recyclable Packaging: Building a recyclable packaging system with French logistics providers - Policy Tools Utilization:
French Eco-Transition Subsidies: Applying for funding to green logistics transformation
EU Innovation Fund: Participating in cross-border low-carbon logistics pilot projects
Carbon Credit Mechanism: Investing in French-certified carbon offset projects
Conclusion: From Cost Center to Value Creation
The green transformation of steel logistics to France has changed from an “optional” to a “mandatory” issue. Successful companies will:
Internalize carbon costs as decision-making parameters, rather than external constraints
Build a resilient low-carbon system based on maritime transport, with rail as the backbone and distribution as the network
Achieve visibility, manageability, and optimization of carbon footprint through digitalization
Transform green logistics into product differentiation and premium pricing power
The French market is reshaping global supply chain rules with carbon pricing. Those companies that can first transform green challenges into logistics innovation and cost advantages will not only gain a foothold in the French market but also accumulate a decisive first-mover advantage in trade competition in the era of global carbon neutrality.
Ultimately, the competitiveness of steel exports to France will no longer depend solely on FOB prices but on “CIF carbon intensity”—the new hard currency of the green trade era.