Preparation of roadmap for the carbon tax of the Ministry of Commerce

Trade Minister Ömer Bolat said that roadmaps in Turkey’s iron and steel, aluminum, cement and fertilizer sectors are nearing completion in preparation for the European Union (EU) carbon border tax, which can create a financial burden for years to come.

The European Union launched the so-called carbon border tax in April, which was designed to “protect EU companies from less environmentally conscious global competitors.”

The system called the Border Carbon Regulation Mechanism, which is a pioneer in the world in its field, also provides for tax obligation according to environmental sensitivity starting in 2026.

INFORMATION ACTIVITY FOR COMPANIES

In his presentation at the Planning and Budget Commission of the Grand National Assembly of Turkey, Bolat said: “We are implementing our green consensus plan regularly and decisively” and added: “Within the framework of our work under the Mechanism Carbon Border Regulation (SKDM), we will first carry out the information activities that our companies will need within the framework of the reporting obligation that begins on October 1, 2023.” “We’re getting it done,” he said.

Noting that they want verification and financial liabilities to be reduced starting in 2026, Bolat said: “Sectoral decarbonization roadmaps for iron/steel, aluminum, cement and fertilizers are nearing completion.”

Bolat stated that the Industry and Environment ministries are also involved in the work to avoid tax losses in the process, and said that they want the tax that the EU will collect within the scope of SKDM to remain within Turkey and be transferred to the transformation green of the sectors. (REUTERS)