At the Eurometal Steel Day & YISAD Flat Steel Conference held at Istanbul Marriott Hotel Asia on Thursday, April 27, in cooperation with SteelOrbis, senior Specialist at the Turkey’s central bank Ömer Kayhan Seyhun informed participants about the EU’s carbon border adjustment mechanism (CBAM) and its possible effects on Turkey's exports.
Stating that since the beginning of the 1990s there have been discussions about production-based carbon emissions that harm industry, Mr. Seyhun underlined the decisions, measures and steps taken on international platforms regarding the issue since then. He stated that the CBAM, which is one of the measures taken within the framework of the European Green Deal, is limited to the iron and steel, cement, aluminum, fertilizer and electricity generation sectors for now and other sectors will be included in the regulation in the coming period. EU countries are planning to take the CBAM criteria into consideration when importing the products in question.
According to Mr. Seyhun, if Turkey takes no action regarding carbon emissions, it is foreseen that its emissions will increase to 700 million metric tons in 2050, while, in the net zero emissions scenario, its emissions will decrease to 132 million metric tons. He also said that there are steps that Turkey should take towards the green transition: he stated that the institutions that will take charge in this field should be clarified, data collection should be prioritized, and emission calculation methods should be developed.
Mentioning the possible effects of the green transition on Turkey's exports, Seyhun stated that European countries and the UK have a share of 46 percent in Turkey’s exports and a 27 percent share in Turkey’s imports. He stated that one third of exports to Portugal and one fifth of exports to Romania are made by the sectors in question. The Turkish central bank official also stated that the share of the Turkish iron and steel industry’s net sales revenues which goes towards research and development is still only 0.1 percent, adding that, in order to ensure competitiveness in the export markets, it is necessary to focus on R&D even though it is costly.