Turkey and the EU discussed the technical aspects of implementing the CBAM

At a working group meeting held last week, Turkey and the European Union discussed, among other things, the technical aspects of the Carbon Border Adjustment Mechanism (CBAM). This was reported by Hürriyet Daily News, citing the country’s Ministry of Trade.

The meeting was co-chaired by Deputy Minister of Trade Mustafa Tuzcu and Gerasimos Thomas, Head of the European Commission’s Directorate-General for Taxation and Customs Union.

Regarding the CBAM, negotiations focused on how Turkey’s renewable energy system could be incorporated into the methodology applied to exports to the EU. Officials also discussed the recognition of verification processes that would allow Turkish exporters in relevant sectors to use actual emission values instead of standard benchmarks.

Consultations between the parties also covered a review of the default emission values set for certain sectors. In addition, discussions focused on whether the allowances granted to producers under the European ETS could be reflected in the implementation of the CBAM, as well as the possibility of deducting the cost of the Turkish carbon tax—which is still under development — from CBAM calculations.

As a reminder, last July, Turkey approved plans to launch its own carbon market to achieve the goal of reducing greenhouse gas emissions to zero by 2053. The country’s parliament passed its first-ever climate law, which, among other things, provides for the creation of a national emissions trading system (ETS). Under the new law, companies subject to the ETS will be required to obtain greenhouse gas emission permits within three years of the regulation taking effect.