Due to the use of fossil fuels, manufacturers will offer products to consumers by adding a carbon tax on their costs. The transition process will begin on October 1, 2023.
SKDM will initially be applied to aluminum, cement, electricity, fertilizer and iron and steel imported into the EU.

Turkey is the third country that exports the most to the EU in aluminum and iron and steel.

Turkey is the third country that exports the most to the EU in these products, especially aluminum and iron and steel.

The weight of the EU in Turkey's total exports of these products is just over 50 percent. Therefore, it is the fourth country with the highest dependence on the EU in the export of these products. Exports of these products to the EU market are approximately 5 percent of Turkey's total exports.

According to SHURA, switching to carbon pricing domestically and prioritizing production technologies that will reduce carbon emissions in the production of covered products will minimize the impact of SKDM on exports.

According to the first calculations made by the United Nations Conference on Trade and Development (UNCTAD), a carbon tax at the border could increase the price of aluminum imported from Turkey by 1-2 percent, the price of iron and steel by 3-6 percent, and the price of cement by 12-24 percent.

It is anticipated that carbon taxes reflected in product prices will be deducted from the carbon tax at the border for exports to the EU from countries with carbon pricing.

According to experts, who state that Turkey's transition to carbon pricing will increase its competitiveness in the EU market, "With the announcement that the Paris Agreement will be included in the parliamentary agenda in Turkey, the revision of climate targets and the transition to carbon pricing are expected to accelerate."

Drawing attention to the importance of expanding the impact analysis studies carried out within the scope of SKDM, developing policies for the competitiveness of the industry and directing carbon tax revenues to energy conversion, SHURA states that "In the long term, energy efficiency and the transition to low-carbon processes in carbon-intensive production areas will be decisive in competitiveness."

Which sectors and which products will it cover?

In the first stage of the regulation, 42 products from the Cement, Iron and Steel, Aluminum, Fertilizer, Electricity and Hydrogen sectors will be affected. In the following period, it may be possible for different products from different sectors to be included in the scope of regulation.

When will the regulatory requirements come into effect?

The transition period will begin on October 1, 2023. During this period, sectors exporting to the EU will start reporting by calculating the embodied carbon in their products. After January 2026, SKDM will begin to be fully implemented. The environment is too critical to be left to the conscience of individuals, organizations or countries! The damage to the environment becomes a matter of life for living things. That is why efforts are being made to eliminate differences in understanding between countries through international agreements. Unfortunately, it is a known fact that international agreements do not have sufficient impact.

That's why the rules of the economy are being tried to be rewritten. Protecting the environment is being tried to become the new rules of the economy. Border carbon regulation is such a regulation. In my opinion, with this regulation, the European Union is trying to tell the countries that send products to it: "If you do not want to be green, I will use the political and economic tools at my disposal to make you green." and encourages less use of fossil fuels. The producer is subject to a tax on the amount of carbon dioxide gas it releases into the environment. Turkey's acceptance of the Kyoto Protocol and the fact that it has undertaken certain obligations are of great importance in terms of both reducing greenhouse gas emissions and additional income through financial instruments such as carbon tax. Carbon tax, which is a market-based tax, has a positive contribution to both economic life and environmental pollution.