Gülay Öncar Şentürk
CPC Belgelendirme
The European Green Deal” was published by the European Union (EU) Commission on 11 December 2019. The agreement also aims to protect and enhance the EU’s natural capital and protect the health and well-being of its citizens from environmental risks. The European Commission has set the goal of the European Union to be a climate-neutral continent by 2050.
The priorities of the EU in this process; Investing in environmentally friendly technologies, supporting innovation in the industry, providing transportation with clean, cheap and healthy alternatives in the private and public transportation sectors, decarbonizing the energy sector and switching to 100% renewable energy sources, making buildings energy efficient.
Within the framework of the Green Deal, “carbon border tax – carbon regulation at the border – SKD” is planned.
These efforts include various deterrent sanctions, such as the carbon tax expected to be levied under the Border Carbon Regulation. With the Border Carbon Regulation, new economic norms, processes and sanctions await all countries that have commercial relations with the EU, including Turkey. The European Union is Turkey’s largest trading partner, so this transformation concerns Turkey very closely.
The EU-ETS (Emissions Trading System) infrastructure is being prepared in our country, based on the Green Agreement and the Carbon at the Border regulations. Carbon taxation and emission reduction studies have started.
The proposal for the SKD mechanism was published by the European Commission on 14 July 2021. It is recommended by the Commission that the implementation be initiated with a 3-year transition period as of 1 January 2023, which does not impose any financial obligations.
With the published draft, the design of the SKD mechanism, its sectoral scope and application procedures and principles are explained.
In this context, in the draft legislation, the SKD mechanism was designed to be a parallel system to the EU Emissions Trading System (ETS); It is seen that the selected sectors subject to the SKD mechanism are determined as iron and steel, cement, aluminum, electricity and fertilizer.
However, if a third country is fully integrated into the EU’s ETS or an agreement is signed between any third country and the EU linking emissions trading systems, the possibility of exemption from the regulation of the respective countries; In addition, it is understood that it is aimed to explore the possibilities of the EU to conclude agreements with third countries that will ensure that carbon pricing mechanisms are taken into account.
Actions to be taken under the green deal are expected to transform the energy, transport, industry, finance, food and digital industrymarkets.
This new growth strategy, which he calls the ‘Green Deal’, will bring a “carbon-free economy” model from industry to agriculture, from transportation to energy, and will also reshape trade.
Therefore, a very important process is entered. Action plans were also announced by the Ministry of Commerce.
In the Action Plan, (1) border carbon regulations, (2) a green and circular economy, (3) green finance, (4) clean, affordable and secure energy supply, (5) sustainable agriculture, (6) sustainable smart transportation, actions to be implemented in order to achieve the targets set under the headings of (7) combating climate change, (8) diplomacy, and (9) European Green Deal information and awareness activities were included. In this framework, the Action Plan includes a total of 32 targets and 81 actions under 9 main headings.
In this process, the entire energy, cement and construction sector, textile sector, agriculture and food sectors, industrial sectors, retail sectors and finance sectors are affected.
The private sector has an important role to play;
– The European Union Emissions Trading System will impose additional carbon costs on sectors that have not completed the transition to a low carbon economy;
– Since Turkey has not ratified the Paris Agreement, there will be difficulties in agreements such as a free trade agreement with the EU;
– The Consensus can help Turkey to export to EU countries more easily by bringing Turkey’s low carbon footprint production to an advantageous position;
– It can contribute to the development of the country’s economy by mobilizing the financing of the private sector;
– Significant opportunities such as green technology investments and sustainable finance models can be created in the technology and finance sector, which will be strengthened with the decarbonization process in production.
A fair environment and legislation should be established on carbon emissions, and opportunities should be provided for investments in the industrial transformation agenda.
What Can You Do to Prepare for the European Green Deal?
Both the European Green Deal and the Border Carbon Regulation target carbon emissions caused by companies and industries. For this reason, you can have an effective carbon management. You can take the specified steps to minimize your potential cost risks.
1. Calculate Your Carbon Footprint
Expected regulations currently only cover corporate carbon footprints. However, it is expected that the product carbon footprint will also be taken into account in the future. For this reason, you can
take the most important step of carbon management by starting your corporate carbon footprint and product footprint calculations.
2. Subtract Your Carbon Emissions Cost
You can calculate the potential additional cost of your calculated carbon footprint based on product, turnover or performance. In this way, you can prepare for the European Green Deal arrangements now.
3. Strategy Development and Optimization
When you calculate and report your corporate carbon footprint, you can realize the most important step, strategy development, optimization. You can make effective risk minimizations by applying various strategies to reduce your potential carbon tax in your activities and processes.
If an example is given for cement sectorally, for reduction;
-The CO2 coefficient can be reduced by increasing the use of alternative fuels, especially produced from municipal solid wastes. It is possible with the use of non-recyclable and biomass wastes.
-Increasing the use of cement with additives and carbon capture/ carbon utilization, which are innovative technologies, can also be developed.
– Innovation and Energy efficiency investments, Waste heat recovery. The energy of the hot gases formed in the cement production process and thrown into the atmosphere from the factory main chimney can be converted into electrical energy thanks to the waste heat recovery facilities.
The transition to a circular economy can be achieved by protecting the nature in the raw material quarries and protecting the natural reserves by ensuring the continuation of the wildlife, and by using the wastes as energy and raw material source.
In the recovery period after the COVID-19 crisis, the construction of a sustainable and inclusive global economy has become the priority agenda of the international community.
Green Deal process; Studies to be carried out in this field will lead to the development of different commercial models and measures in order to ensure that people, nature and all living things can continue their lives in a safe, cleaner, livable, healthy and sustainable way, and to start clean production between producers and consumers, and to protect the relationship of trust.