The Carbon Border Adjustment Mechanism (CBAM) implemented by the EU aims to apply carbon pricing to the importation of carbon-intensive goods, ensuring that both imported and domestic products are subject to the same carbon cost. This measure aims to prevent carbon leakage, where the carbon-intensive production is relocated abroad to avoid taxation by shifting carbon emissions.
In the context of decarbonization, carbon pricing is one of the critical medium- to long-term policy priorities for Türkiye.
With CBAM, preserving and enhancing trade with the EU, Türkiye’s largest trading partner, has become particularly important. However, beyond merely adapting to CBAM to safeguard EU trade, Türkiye, in light of its 2053 net-zero target, requires a comprehensive set of carbon pricing policies that extends beyond CBAM and other countries’ practices to encompass its entire economy.
This study, prepared by the SHURA Energy Transition Center, aims to reveal the quantitative and qualitative impacts of the EU’s CBAM on Türkiye’s economy. Focusing on the iron and steel, cement, aluminum, and fertilizer sectors in the first phase of CBAM, the study conducts an impact analysis based on cost-benefit assessment. The report, which determines benefits and costs under two main scenarios—Business-As-Usual and Industrial Transformation—provides recommendations for the critical steps Türkiye needs to take in the next decade.
