Carbon Border Adjustment Mechanism (CBAM) Process Management
In line with its green transformation objectives, the European Union has introduced the Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage and protect industrial competitiveness. This mechanism aims to introduce carbon pricing by taking into account the carbon emissions of certain imported products.
CBAM will be implemented by phasing out free carbon allowances under the European Union Emissions Trading Scheme (EU ETS). This will prevent the relocation of production to countries with low carbon regulations to avoid high carbon costs and ensure a level playing field.
Turkey will be directly affected by the CBAM due to its exports to the EU. Failure to comply with the CBAM may lead to reduced competitiveness and increased additional costs in carbon-intensive sectors. It is therefore crucial for companies to accurately calculate and report their carbon emissions and to switch to low-carbon production processes.
The CBAM will contribute to the sustainable transformation of industry by raising awareness of emissions management in Turkey. In addition, Turkey's development of its own emissions trading system and harmonisation with the EU will provide long-term economic and environmental benefits.
Legal Framework and Implementation Schedule of SDCC
Sectors within the scope of SDCC
The SDCC regulates the embedded emissions of certain imported products, with a focus on carbon-intensive industrial sectors.
The sectors covered in the first phase are as follows:
These products have been determined on the basis of HS/CN codes and the scope may be expanded over time.
Companies that do not comply with the CBAM may face additional carbon costs and lose their competitive advantage in the European market. Along with restrictions on access to the European Union market, legal sanctions may also be imposed in case of non-compliance with the regulations. Furthermore, an image of environmental irresponsibility can lead to a loss of reputation with customers and business partners.
Adaptation Process to BCSDM
SKDM’ye uyum sağlamak için şirketlerin yanda paylaşılan adımları takip etmeleri gerekmektedir:
1. Measurement of Carbon Emissions
Accurate calculation of carbon emissions from production processes is of great importance.
2. Data Reporting
Companies within the scope of the SDCC are required to regularly report their carbon emissions in the formats determined by the European Union.
3. Development of Carbon Management Strategies
It is important to create emission reduction plans and plan the necessary investments for the transition to low-carbon production processes.
4. Follow-up of Certification and Conformity Processes
In order to fully comply with the European Union regulations, the necessary documents and certificates must be prepared.
As Greenlife Consulting, we offer comprehensive Consulting services for companies that want to comply with the SDCC process. We provide technical support to meet regulatory requirements, accurately calculate carbon emissions and fully manage reporting processes.
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