Prof. Dr. Nuri Azbar
Aegean University, Faculty of Engineering, Department of Bioengineering
PRONGEN. TECH Biotechnology Research and Development Industry and Trade Inc., Aegean University Campus Technopark
EU Green Deal and Background
EU Green Deal is a culmination of the signals of climate change, which started with the Industrial Revolution, evolving into evidently alarming situation for the last 4 decades, finally escalating into a pressing crisis we experienced globally today. Summits of heads of states, Kyoto protocols and COP meetings unfortunately did not turn into adequate and effective actions. Against this backdrop, EU took initiative to speed up the actions, setting the goal of making Europe a net zero carbon continent. As EU is well aware of the fact that even when she is 100% successful, her global effect will be limited at the level of 5 – 7%, she aimed to create a global multiplier effect with “Carbon Border Adjustment Mechanism (CBAM)”.
Historically, Industrial Revolution caused carbon emissions of over 40 billion tons annually due to staggeringly high consumption of fossil fuels, leading to substantial increase in carbon dioxide concentrations in the atmosphere. As of July 2024, our atmosphere contains 424.25 ppm carbon dioxide. And scientists defined 450 ppm as the point of no return (Reports of International Climate Change Panel (ICCP). Among greenhouse gases, the main drivers of climate crisis, carbon dioxide, despite its relative contribution is at the low levels compared to other gases, is the most important molecule driving up global warming as it is emitted at the levels of billions tons, and produced at the levels of tons. Carbon dioxide emissions increase by 3 ppm every year, therefore there just remained 9 years to reach critical threshold of 450 ppm, as warned by scientists if actions fail to prevent CO2 emissions.
European Union Green Deal has emerged out of the process, started by Climate Convention of UN in 1994, accelerating by Kyoto Protocol in 2005, and Paris Agreement where all countries accepted the reality that climate change has in fact turned into a crisis. Planned to be global pioneer in fight with climate change, European Union (EU) published European Green Deal in 11 December 2019, transitioned into a new growth min ve çevrenin korunmasını odak alan yeni bir büyüme modeline geçmiştir. Paris Antlaşması’ndan sonra AB Yeşil Mutabakatı, 170 ülke ile birlikte Türkiye tarafından da 2020 yılında imzalanmıştır. AB Yeşil Mutabakatı, 2030 yılına kadar (Fit for 55) karbon salımlarını 1990’lı yıllardaki seviyelerin %55’ine indirmeyi ve 2050 yılında ise “Net Sıfır Karbonlu Kıta” olmayı hedeflemiştir. (bkz. Şekil 1).
Figure 1. Development process of EU Green Deal
Green Deal is a new growth strategy of EU, aiming to reduce carbon emissions by 55% until 2030 and then zero the net greenhouse emissions until 2050, and also end the resource dependence of economic growth. At this point, EU took initiative and decided to proactively enforce her responsibilities, including Carbon Border Adjustment Mechanism (CBAM) designed to include her trading partners in this process. CBAM is a regulatory system where carbon costs incurred for production of goods in EU are applied to the goods imported into EU through a carbon pricing model. In this context, it is clear that Green Deal does not only have an environmental aspect but also an economic aspect. With CBAM, EU does not only intent to eliminate carbon leakage in her own Continent but also the related disadvantages in economic competition. EU Green Deal seeks to keep global warming below 1.5°C. However, even when EU Green Deal is implemented with 100% success, its global effect will remain below 10%. As a matter of fact, the countries that have the lion’s share in global carbon emissions (China, USA, India, Russia, Japan, Indonesia, etc.) must absolutely act with the same sensitivity and responsibility (see Figure 2). Therefore, it is absolutely essential that these main actors in carbon emission become a part of this process.
And it is an indisputable fact, for both today and future, that failing to bring urgent actions into life would increase the temperature of our planet by up to 6oC, which is already warmed by 1.1oC, and exponentially ramp up climate anomalies (cyclones, floods, droughts, sudden rains, pandemic, excessive increase in agricultural pests, etc.) whose negative effects we are already experiencing.
Figure 2. Türkiye and countries with highest carbon emissions
To bring the carbon emission down to “Net Zero” level, as aimed by EU Green Deal, groundbreaking energy transformation is essential to eliminate completely the carbon-based fossil fuels (coal, natural gas, petrol, diesel, etc.), the main culprit of the problem. Transportation industry must be a part of this revolutionary transformation as it is a main actor driving up carbon emissions. In this context, transportation industry and transport in the supply chain are expected to see radical transformations in the near future.
Is Green Deal Restricted Only to Carbon Emissions?
Although Green Deal seems to focus on global climate crisis element, it is evident that the deal is looking for compromise on all other environmental elements. The 3 terms that best describe the deal; Decarbonization, meaning transition to an energy system free of fossil-based carbon resources.
Dematerialization, meaning resource-independent growth, production with less raw materials. Detoxification, meaning eradication of toxic chemicals in the production processes, particularly in agriculture. Besides these 3 pillars, the system will increasingly become a part of our day-to-day lives, with circular economy to increase rates of recycling and recovery, the industrial symbiosis to turn waste into value, as well as resource efficiency, energy efficiency, conversation of biodiversity, and transition to green buildings, as seen in Figure 3.
Figure 3. Elements of EU Green Deal
In fact, we currently experience societal implications of all these elements and Industry 1.0, 2.0, 3.0, 4.0, 5.0 on Society 4.0 and Society 5.0 particularly. Society 5.0, also known as “Super Smart Society”, built on Society 4.0, and being 5th period of historical development of humanity, is an approach where cyberspace and physical space is fully-integrated. This approach aims to increase life quality and welfare of the society, and create a human centric society. “Super Smart Society” model proposes a society model centered on “Human, Sustainability And Resilience” where the relations between humans and machines and robots are realized in the most efficient way in every aspects, driven by digitalization and artificial intelligence.
What is the position of Cement Industry as per EU Green Deal? And what needs to be done in adaptation to EU Green Deal.
Cement industry is included in top priority 6 industries along with iron & steel, aluminum, electricity, fertilizer and hydrogen where carbon leakage is under close monitor and scrutiny. Cement industry is entirely a part of the process, from raw material sourcing from the mines to transportation, production to packaging up to the waste disposal, namely at every stages from cradle to grave. Cement products have also become a matter of preference for customers in terms of not only functionality or technical capabilities, but also eco-friendliness. With EU Green Deal, these factors will progressively become a matter of close scrutiny. In addition, Turkish cement products will face further taxation under Carbon Border Adjustment Mechanism (CBAM) of EU Green Deal. Started by October 2023, the quarterly observation period shall end on 1 December 2026, and taxation will commence as of May 31.
In this context, to prevent taxation losses from causing damages to cement industry in international trade and competition;
– It is necessary to develop our roadmaps and plans to proactively and preemptively take our measures against the carbon taxation, a pillar of EU Green Deal, which will start affecting cement industry by 2026 through CBAM.
– Based on the mindset “No Measurement, No Management” cement actors, if not done yet, must first develop their “Corporate Carbon Footprint Reports” and immediately followed by “Product Carbon Footprint Reports” in no time.
–Decarbonization actions must be stepped up, where Carbon Capture and Storage (CSS) and Carbon Carbon Utilization (CCU) technologies must be deployed swiftly across the industry.
– Another urgent action is the deployment of the alternative solutions to reduce emissions in clinker production, the major contributor to the carbon emission in cement production.
– In decarbonization actions, it will be a sound decision to give priority not only to biogenic fuels and renewable resources but also “Green Hydrogen” options.
– Seen as a risk, CO2 molecule is in fact a raw material of many petrochemical product. Alternative fuel use based on carbon capture and green hydrogen with (Power to X) PTX approaches should be considered in the reduction of emission not only in production but also across the supply chain.
As a result, the roadmap charted by EU Green Deal is not only focused on the reduction of our global carbon footprint but also poses a significant risk for those who fail to keep up with it. It is possible for Turkish Cement industry, the second highest vulnerable following China, to turn the risks or crisis into an opportunity if she takes the correct steps.