Industrialists Focus on the New Era of the EU's "Carbon Border Adjustment Mechanism"

Various sectors, especially industry, are preparing for the new era that will begin with the completion of the transition process under the European Union's (EU) Carbon Border Adjustment Mechanism (CBAM) on January 1, 2026.

Seyit Ardıç, President of the Ankara Chamber of Industry (ASO), told AA correspondent that with the regulation in question, from the beginning of the year, it will become mandatory for companies exporting products within the scope of CBAM to the EU in the cement, iron-steel, aluminum, fertilizer, electricity, and hydrogen sectors to declare greenhouse gas emissions in quarterly periods.

Ardıç pointed out that companies unable to report emission data completely and accurately may be considered commercially risky by their importers in the EU,

"Therefore, for industrialists, this period effectively serves as a 'compliance test.' The first step for our industrialists should be to check whether the products they send to the EU fall within the scope of CBAM. For products within the scope, it will be necessary to collect, calculate, and transmit the emission data of the production facility to the EU importer." he said.

Ardıç stated that with the new year, these declarations will turn into financial obligations and that it will be necessary to purchase CBAM certificates for emissions.

A tool to accelerate the green transformation of industry

Ardıç emphasized that companies not preparing today will face the risk of losing their competitive power in the EU market tomorrow due to carbon costs, and continued:

"As ASO, we consider CBAM not only as a compliance obligation but also as a strategic tool to accelerate the green transformation of industry. Especially in sectors strongly represented in Ankara industry, such as cement, metal, and casting, emission data management covering the entire supply chain is becoming increasingly decisive. Our companies that do not have data or cannot provide verifiable emission information face the risk of significant losses in the EU market. In this context, as ASO, we support our members' preparation process for CBAM with the studies we conduct, especially the TÜBİTAK 1831 Green Innovation Technology Mentorship Program. We plan to continue our support for our companies with rich content regarding the transition to the CBAM process, which contains significant risks and opportunities. Our companies that accelerate the preparation and compliance process with carbon footprint calculation, digital data management, and low-carbon production investments will be able to turn CBAM from a cost element into a competitive advantage in the upcoming period."

The steel sector produces low-carbon

Veysel Yayan, Secretary General of the Turkish Steel Producers Association (TÇÜD), also stated that the process to begin marks an important turning point for the cement, aluminum, electricity, steel, and fertilizer sectors.

Yayan emphasized that the Turkish steel sector is a sector that has been producing in an integrated manner with the European market for many years, exporting a significant portion of its exports to EU countries, and making serious investments in compliance with environmental legislation, and continued:

This development, especially for the steel sector, indicates not only the beginning of a technical reporting obligation but also a new phase where the EU's climate policies are more directly linked with trade tools. Turkey is one of the countries with the highest share of production in electric arc furnace facilities in the world. The fact that approximately 70% of production is based on this technology structurally places the Turkish steel sector at a lower carbon point compared to many countries producing with coal-based blast furnaces. This situation creates a significant competitive advantage for the sector against carbon-based regulations like CBAM. With the end of the transition period, the tightening and standardization of reporting obligations may create additional administrative and operational costs for producers with limited technical capacity. At this point, it is of great importance that real product-based emission data is taken as the basis in the implementation of CBAM, and that default values are used as an exceptional and temporary tool. Otherwise, even facilities producing with low carbon intensity may face the risk of an unfair financial burden.

Preserving global competitiveness is important

Yayan stated that another critical issue for the Turkish steel sector is that the final implementation phase of CBAM should be carried out in full compliance with the process of gradually removing the free allocations granted to European producers under the EU Emissions Trading System.

Yayan emphasized that while producers within the EU continue to be effectively protected from carbon costs, imposing simultaneous financial burdens on third-country producers will disrupt competitive balances and contradict the primary rationale of the mechanism, which is to combat carbon leakage, and noted:

"In this context, for CBAM to serve as a tool for climate goals, it must not gain a trade-restrictive or protectionist nature. It is important to adopt a more constructive and cooperative approach in terms of data sharing, verification processes, and transition mechanisms, taking into account the special situation of countries like Turkey, which have a Customs Union relationship with the EU and whose industry is highly integrated."

Yayan stated that the Turkish steel sector supports the reduction of emissions, which is the main goal of CBAM, and expressed the demand for the mechanism to be implemented in a fair, transparent, and competitive manner and for measures to be carefully taken to prevent protectionist policies from becoming an instrument.

Yayan emphasized the importance of the experiences gained during the transition period evolving into a structure that supports transformation rather than challenging sectors,

"This situation is of critical importance for the sustainability of trade with the EU and the preservation of the global competitiveness of the Turkish steel industry." he said.

Costs in cement may increase 5 times

Volkan Bozay, CEO of TÜRKÇİMENTO, also stated that if the draft regulations come into force, the costs within the scope of CBAM may increase up to 5 times, and said, "Especially the use of default values increases the risk of encountering higher costs than anticipated in the cement sector. Therefore, it is critically important to present and verify the real emission data in our country separately for both cement and clinker for each facility in a correct and reliable manner, to calculate costs more realistically." he evaluated.

Source: Anadolu Ajansı