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Publications > Çelik Yapılar
Sayı: 71 - Temmuz / Ağustos 2021

Summaries




CARBON BORDER ADJUSTMENT MECHANISM IS COMING


Mr. Onur Fatih Bulut and Mr. Volkan Çağın from the Turkish Standards Institute wrote about the developments on the European Green Deal and the Carbon Adjustment Mechanism at the Border.
The environmental policy implemented in the European Union aims to reduce and prevent pollution, to ensure sustainable development by consuming natural resources taking into account the ecological balance, and to prevent environmental damage at its source by managing the environmental issue in an integrated manner with other industrial areas such as energy and transportation.

 

The basic principles of this applied environmental policy are “polluter pays”, “complementariness”, “high level of protection”, “prevention at source”, “preventiveness” and “precautionary” (T.R. Ministry of Foreign Affairs, European Union Presidency, 2021).

 

The European Union announced the European Green Deal (AYM/EGD) as its new growth strategy on 11 December 2019. It is stated that the AYM/EGD, which is a response to the environmental challenges, aims to protect the health and welfare of citizens from environmental risks and impacts while protecting and developing EU natural capital. One of the main goals of the AYM/EGD is to transform the EU economy for a sustainable future and to create a transition plan to a circular economy. In line with this plan, comprehensive and transformative policies should be designed. These policies have been evaluated under the following headings (European Commission, 2019).

 


  • To reach the EU's 2030 and 2050 climate targets,

  • To provide clean, cost-effective and safe energy,

  • To motivate industry for a circular economy,

  • To build and rebuilt/renew energy and resources efficiently,

  • To accelerate the transition to sustainable and smart transportation,

  • To design a fair, healthy and environmental friendly food supply system “from farm to fork”,

  • To protect and improve ecosystems and biodiversity,

  • Zero pollution.


 

Carbon Border Adjustment Mechanism 

One of the main goals of the AYM/EGD is to make Europe the world's first carbon-neutral continent with net offsetting of greenhouse gas emissions by 2050. In line with this goal, another application planned to be launched within the scope of the AYM/EGD is the Carbon Border Adjustment Mechanism (SKDM/CBAM). The purpose of this regulation is to fight with climate change by preventing carbon leakage. The EU started a consultation process with stakeholders in order to determine the content of the SKDM/CBAM presented with the Climate Law proposal, which was announced to the public on 04.03.2020. On 01.04.2020, the feedback period was completed and then the public consultation process was started. Our country, which is included in the public consultation process, conveyed its views on the subject with the report dated 06.04.2020 prepared by the Ministry of Commerce. At the end of these processes, the law “Establishing the Carbon Border Adjustment Mechanism”, which explains the details of the SKDM/CBAM, was published on 14.07.2021 (European Commission, 2021).

 

The period of 1 January 2023 – 31 December 2025 has been determined by the European Commission as the transition period for SKDM/CBAM. Although there is a reporting obligation for the products within the scope of SKDM/CBAM imported during the transition period, the financial obligations will be effective as of January 1, 2026. SKDM/CBAM reporting during the transition period will need to be done on a quarterly basis and include the information given below.


  • The total amount of product (tons) coming from each   mill associated with this import in the country where the production takes place for the imported product group,

  • The total amount of greenhouse gas emissions (in CO2 equivalent) associated with each tonne of imported product,

  • The total amount of indirect greenhouse gas emissions associated with each tonne of imported product,

  • The carbon price paid in the country where the imported products are produced in relation to the greenhouse gas emissions caused by the imported products, should there be no export incentive mechanism (tax refund etc.) in the countries where there are carbon trade markets.



Çelik Yapılar - Sayı: 71 - Temmuz / Ağustos 2021

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