THE COST OF SKDM TO THE TURKISH ECONOMY MAY REACH 20 BILLION EUROS

Izmir Free Zone, which is the address of investments on an international scale that creates value for Izmir and the Turkish economy; It hosted an important event within the framework of its vision of becoming a "Green Free Zone".

The conference titled "Green Free Zones and Border Carbon Regulation Mechanism", organized by Izmir Free Zone Continuing Education Center (İZSEM) within the scope of June 5 Earth Day and Environment Week, was held with the participation of representatives of companies operating in the Zone.

HERE ARE THE SECTORS THAT WILL BE PRIORITYLY AFFECTED

Speaking at the conference, İZBAŞ Technical Advisor and Ege University Bioengineering Department Faculty Member Prof. Dr. Nuri Azbar gave detailed information about the Border Carbon Regulation Mechanism (SKDM), which will be a cost factor in exports to European Union countries by 2026.

Reminding that the period between 2023 and 2025 is a transition period in practice, Azbar said; pointed out that the Turkish economy and exporting companies will face a new cost element with the SKDM, which will be applied primarily to the iron and steel, cement, fertilizer, aluminum and electricity sectors as of January 1, 2026.

45-50% OF OUR EXPORTS ARE TO EU COUNTRIES

Emphasizing that the system will cover almost all sectors by 2030, Nuri Azbar said that companies will need to obtain certification through the Emission Trading System (ETS); He noted that the cost of these certificates will be calculated for €/ton CO2 based on weekly ETS prices.

Prof. said that according to today's calculations, it is highly likely that Turkish companies, which make 45 to 50 percent of their exports to EU countries, will face an additional cost of 20 billion Euros annually. Dr. Nuri Azbar made the following assessment:

“WE WILL EITHER BE PUNCHED OR WE WILL SHAKE HAND”

“It is up to us to reduce or increase this cost. For example, if the carbon price is 50 euros/ton, 22 euros of 100 euros worth of cement exports will be paid as Border Carbon Tax. The first three countries that will be most affected by this system will be Russia, China and Türkiye. There is a fist raised in the air to strike down on countries like us. We can take this punch in the face, or we can turn the crisis into an opportunity with rational policies and shake hands with the fist hand. Within the scope of ETS, facilities that cause carbon emissions below their quota will be able to sell the difference to facilities that need it, that is, facilities that cause carbon emissions above their quota. This mechanism will also mean a serious source of income for companies and even countries preparing for the period after 2026 with rational policies. Türkiye is behind developed countries with an annual CO2 emission of 452 million. However, this data should not comfort us. Our emission values ​​are low compared to countries such as China and the USA, but we are among the top 10 countries with the fastest increasing emissions.”

İZBAŞ HAS BEEN CALCULATING ITS CARBON FOOTPRINT FOR TWO YEARS

İZBAŞ Technical Advisor Prof. Dr. Nuri Azbar stated that the Region has been calculating its carbon footprint for two years within the framework of its vision of becoming a "Green Free Zone" and that a significant portion of its energy self-consumption is met from renewable energy sources.

Azbar underlines that all companies, regardless of the sector they operate in, should calculate their carbon footprints on a corporate and product basis; Within the framework of the "Türkiye Green Industry Project" carried out by TÜBİTAK and KOSGEB with the support of the World Bank, 1831-Green Innovation Technology Mentorship Call was opened to ensure that SMEs comply with Green Transformation legislation and receive technical assistance, and up to 90% grant is given to the companies participating in the program. He reminded that support was provided.

HOW WILL THE EMISSIONS TRADING SYSTEM WORK?

• While a certain ceiling value will be determined and limited for energy production and industrial facilities, a quota will be determined for each facility.
• Facilities that cause carbon emissions below the quota will be able to sell the difference to the facilities that need it, that is, those that cause carbon emissions above the quota.
• Carbon value will be determined according to market conditions.
• Facilities that cannot meet the carbon quota will face fines.