Türkiye late Tuesday said road maps for the country’s steel, aluminum, cement and fertilizer sectors are nearing completion in preparation for the European Union’s carbon dioxide emissions tariffs on imports of polluting goods, which could pose a financial burden in the coming years.
The EU in April announced the planned Carbon Border Adjustment Mechanism (CBAM), the world’s first system to impose carbon dioxide emissions tariffs on imported steel, cement and other goods as it tries to stop more polluting foreign products from undermining its green transition.
The bloc will not begin collecting any carbon dioxide emission charges at the border until 2026.
Trade Minister Ömer Bolat on Tuesday said Türkiye was "systematically and resolutely" implementing the Green Deal plan.
"Within the framework of our efforts under the Carbon Border Adjustment Mechanism, we are actively engaged in informational activities to fulfill the reporting obligations, which commenced on Oct. 1, 2023, to assist companies in meeting their requirements," Bolat told Parliament’s Planning and Budget Commission.
As part of the initial phase of the CBAM, launched in early October, EU importers have to report the greenhouse gas emissions embedded during the production of imported volumes of iron and steel, aluminum, cement, electricity, fertilizers, and hydrogen.
Importers will, from 2026, need to purchase certificates to cover these carbon dioxide emissions to put foreign producers on a level footing with EU industries that must buy permits from the EU carbon market when they pollute.
Highlighting the nation’s commitment to reducing verification and financial obligations that will begin in 2026, Bolat underscored, "We are in the final stages of developing sector-specific decarbonization road maps for crucial industries, including steel, aluminum, cement and fertilizer."
Bolat also stressed the collaborative efforts involving the Industry and Technology Ministry and the Environment, Urbanization and Climate Change Ministry to prevent tax revenue losses during the transition.
Moreover, he expressed the government’s ambition for the funds collected under the CBAM by the EU to remain within Türkiye, supporting the green transformation initiatives within these sectors.
The planned tariff has caused disquiet among trading partners.
Türkiye, Ukraine, China and Russia have been expected to have the biggest volumes of exports affected by the CO2 tax – although EU trade with Russia has plunged since the Ukraine conflict.
The EU is Türkiye’s largest trading market. China has urged countries not to resort to unilateral measures like the EU levy.
The European Commission says the border levy aligns with World Trade Organization (WTO) rules. It treats foreign and domestic firms alike and allows deductions from the border fees for any carbon prices already paid abroad.