What happened

SHURA Enerji Dönüşümü Merkezi and the International Network of Energy Transition Think Tanks published a country case study on the Carbon Border Adjustment Mechanism's implications for Türkiye. The report examines four sectors: iron and steel, aluminium, cement, and fertilisers.

Why it matters

CBAM applies carbon pricing to imports of carbon-intensive goods, reshaping trade patterns. For Türkiye—a significant exporter in covered sectors—understanding these impacts is critical for policymakers and industry. The mechanism creates both challenges and opportunities: exporters face higher costs, but decarbonisation can unlock competitive advantage.

The report evaluates Türkiye's preparedness and identifies policy levers: carbon pricing mechanisms, industrial decarbonisation strategies, renewable energy deployment, and access to international climate finance. These tools can support green industrial transformation while preserving export markets and competitiveness during the low-carbon transition.

Background

CBAM is part of the EU's effort to prevent carbon leakage—the risk that production shifts to regions with weaker climate rules—whilst supporting global decarbonisation. The mechanism harmonises the cost of carbon across EU and external producers in specific sectors.