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Carbon and Emission Reduction Strategies at the Border

Carbon Border Adjustment Mechanism and Emission Reduction Strategies: Üçgen Alüminyum’s Approach

The New Era in Global Trade: CBAM and Green Transformation

The European Union’s Carbon Border Adjustment Mechanism (CBAM), set to be fully implemented by 2026, is emerging as a game-changing regulation in global trade. CBAM is a system that imposes a carbon tax on imported goods, aiming to prevent carbon leakage and support the achievement of carbon-neutral targets. By targeting energy-intensive industries such as steel, aluminum, and cement, this mechanism seeks to increase the competitive edge of firms with low carbon footprints in their production processes.

For countries like Turkey, which have strong trade ties with the EU, CBAM represents not just an environmental policy but also an economic and commercial necessity. Turkish manufacturers and exporters are compelled to take significant steps to reduce their carbon footprints and comply with sustainable production standards in this new era.

CBAM’s Impact on Turkish Manufacturers and Exporters

CBAM directly affects Turkish companies exporting to the EU. As one of the EU’s largest trading partners, Turkey must align with the new trade dynamics introduced by this system. Key effects of CBAM include:

  1. Cost Increases: Products with high carbon emissions will face additional costs, reflected as carbon taxes, which may negatively impact competitiveness.
  2. Mandatory Green Transition: Companies must invest in modern technologies, switch to renewable energy sources, and reduce emissions to make their production processes more sustainable.
  3. Transparency and Reporting Requirements: CBAM mandates that exporters calculate and report their carbon footprints according to international standards.
  4. Supply Chain Impact: The environmental impact of the entire supply chain will come under scrutiny, encouraging companies to partner with eco-friendly suppliers.

What Steps Should We Take?

For Turkish manufacturers and exporters, aligning with CBAM is not just a compliance obligation but an opportunity. CBAM facilitates the transition to sustainable production processes and enhances global competitiveness. So, what should be done?

  1. Measuring and Managing Carbon Footprints: Companies should adopt international standards for calculating and reporting carbon emissions, which is critical for both CBAM compliance and gaining a competitive advantage.
  2. Energy Efficiency Projects: Investments in modern technologies that reduce energy consumption should be made.
  3. Renewable Energy Usage: Transitioning to renewable energy sources such as solar and wind is essential.
  4. Green Certifications and Documents: Obtaining certifications that document eco-friendly production processes provides a competitive edge under CBAM.
  5. Supply Chain Optimization: All actors in the supply chain should be evaluated for environmental impacts, and partnerships should be adjusted accordingly.
  6. Awareness and Training: Employees and business partners should be educated on sustainability and carbon management practices.

What We Are Doing at Üçgen Alüminyum

At Üçgen Alüminyum, we have made sustainability a cornerstone of our business strategy. The steps we have taken to align with CBAM and the European Green Deal include:

  1. Calculating Our Carbon Footprint: By partnering with the consultancy firm Quick Carbon, we have begun calculating our corporate carbon footprint. This process allows us to set emission reduction targets and transition to a transparent reporting system.
  2. Energy Efficiency Investments: We are modernizing our production processes, integrating energy-efficient machinery and automation systems to minimize energy consumption. We aim to achieve 20-50% energy savings in our new projects.
  3. Waste Management: We regularly collect recyclable waste such as aluminum shavings and incorporate them into recycling processes.
  4. Supply Chain Sustainability: We request environmental sustainability certificates from our suppliers and prioritize working with eco-friendly partners.
  5. Education and Awareness: Our employees receive regular training on energy efficiency, waste management, and carbon footprint reduction.

CBAM and Our Sustainable Future

CBAM prompts us to revisit all our business models, not just our export processes. At Üçgen Alüminyum, we view this transformation as an opportunity and are committed to working toward a sustainable future. Through investments in modern technologies, we aim to enhance efficiency in our production processes while minimizing our environmental footprint.

On this journey, we aim to grow not only in the European market but globally as an environmentally conscious enterprise. Compliance with CBAM is not just a necessity—it’s the key to a sustainable and successful future.