The European Union, Turkey's most important export market, has introduced the Carbon Border Adjustment Mechanism (CBAM) as of October 1, 2023, causing an increasing burden of CBAM fees for industrial sectors.

Turkey's implementation of its own Emissions Trading System will enable Turkey to internalize the costs associated with the EU ETS and will provide our exporters with the opportunity to be one step ahead in competitiveness in our trade with the European Union by choosing production technologies with lower carbon emissions.

The study titled "Potential Impact of the Carbon Border Adjustment Mechanism on the Turkish Economy" which analyzes the potential impacts of the European Union's CBAM on the Turkish economy and specific sectors in line with the EU Emissions Trading System (EU ETS) and national carbon pricing scenarios, was prepared with the contributions of the European Bank for Reconstruction and Development (EBRD).

The results of the study show that the first two sectors that will be most affected by the CBAM are iron and steel, followed by the cement sector. The analysis indicates that the national carbon pricing scheme, for which preparatory work is underway in Turkey, will reduce the costs of the CBAM.

Click here to read the report.