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İzbaş - İZBAŞ SETS ITSELF APART IN CARBON FOOTPRINT MONITORING

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13 June 2025

İZBAŞ SETS ITSELF APART IN CARBON FOOTPRINT MONITORING

The Carbon Border Adjustment Mechanism (CBAM), which will directly impact emission-intensive industries in Turkish manufacturing, will require companies to purchase carbon certificates for exports to the European Union in certain sectors such as cement, fertilizer, iron and steel, aluminum, hydrogen, and electricity, starting from January 1, 2026.

As one of İzmir’s leading production and export hubs, İzmir Free Zone (İZBAŞ) is proactively preparing its companies for this transition by regularly measuring and reporting both Scope 1 emissions (direct emissions) and Scope 2 emissions (energy-related indirect emissions).

“A COMMITMENT TO ENVIRONMENTALLY FRIENDLY PRODUCTION”

Commenting on the efforts that have been ongoing since 2021, Eyüp Sevimli, Chairman of the Board of İzmir Free Zone Founder and Operator Inc. (İZBAŞ), said:

“We regularly calculate corporate carbon footprints and evaluate the data as a foundation for our environmental sustainability strategies. Going beyond simple calculations, this approach helps raise awareness among the companies operating in our zone regarding energy efficiency, resource use, and emission reduction—reinforcing a culture of environmentally responsible production. As the zone's management, we aim not only to follow global sustainability trends but also to stand out through impactful implementation.”

Sevimli emphasized that reducing carbon footprints is not only an environmental necessity but also a critical component of long-term economic sustainability, noting that international frameworks such as the European Green Deal and CBAM make low-carbon production inevitable for exporters.

TOWARD A GREEN FREE ZONE

Sevimli highlighted that İZBAŞ is becoming a noteworthy example among free zones in terms of environmental responsibility and green transformation, adding:

“Since 2021, we have been systematically monitoring Scope 1 and Scope 2 carbon footprints of our participant firms and taking joint responsibility for a sustainable future. The results from these carbon footprint measurements are used to support our collective environmental strategies. With these determined steps, we are advancing confidently toward becoming a Green Free Zone, encouraging sustainable production and consumption habits. Through innovative practices implemented across our facilities, we are improving energy efficiency and minimizing environmental impacts.”

CARBON FOOTPRINTS OF 108 COMPANIES OPERATING IN İZBAŞ CALCULATED

The total carbon footprint related to electricity consumption of 108 companies operating in İZBAŞ was calculated as 21,738 tons of CO₂ for the year 2023, based on the ISO 14064-1:2018 standard.

The top ten companies with the highest electricity-related emissions accounted for 19,905 tons of CO₂, representing approximately 92% of all electricity-related emissions within the zone. These companies operate in energy-intensive sectors such as plastics and packaging, leather and leather products, food processing, composite materials and wind turbine components, and chemicals and fertilizers.

In terms of natural gas consumption, the total carbon footprint for 2023 was calculated as 7,890 tons of CO₂, with the top ten companies responsible for 7,196 tons of CO₂, accounting for 91% of natural gas-related emissions. These companies predominantly operate in the chemicals and fertilizers, leather processing, composite manufacturing, and food industries.

WHAT AWAITS EXPORTING SECTORS FROM 2026 ONWARD?

  • Starting January 1, 2026, for products such as cement, fertilizers, iron and steel, aluminum, hydrogen, and electricity exported to the EU under CBAM, importers will be required to purchase carbon certificates equivalent to the embedded carbon emissions generated during production.
  • The cost of carbon certificates will be calculated based on the weekly average carbon prices set by the EU Emissions Trading System (EU ETS). If the manufacturer has already paid a carbon price in the country of origin, this amount can be deducted from the CBAM liability—provided it is properly documented.
  • From the same date, embedded emissions data for imported products must be verified by EU-authorized independent verifiers. While direct emissions will be reported for iron and steel, aluminum, and hydrogen, both direct and indirect emissions will be required for cement and fertilizer imports.
  • If CBAM-covered products are processed in a third country and exported to the EU as a different final product, the embedded emissions must be traceable and reported throughout the supply chain.

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