Türkiye to be greatly affected by EU’s carbon tax: Association

ANKARA

Türkiye will be among the countries that are likely to be affected most by the European Union’s carbon border adjustment mechanism (CBAM), said Seyit Ardıç, the president of the Ankara Chamber of Commerce (ASO).

“We cannot afford the green transition. Delays in transition will be very costly,” Ardıç said, noting that the first phase of the CBAM, which will include steel, aluminum, fertilizers, electricity and cement, will come into force shortly.

From an economic point of view, Türkiye will be among the nations that will be affected by the CBAM the most, according to Ardıç.

“The carbon tax is expected to cost Türkiye more than $60 billion by 2040,” he said.

His chamber prepared a comprehensive road map for the EU’s Green Deal to help Turkish industrialists, Ardıç noted.

“It is a loss that Türkiye is not taking part in the India-Middle East-Europe Corridor,” he also said, noting that Türkiye has not yet benefited enough from China’s Belt and Road initiative.

India and China’s easy and less costly access to the Middle East and European markets will mean heightened competition for Türkiye in the near future, according to Ardıç.

“Türkiye’s production and exports are concentrated on low- and medium-low technology products. We rank at the bottom among OECD countries in the exports of high-technology products. We are also at the bottom in Europe in terms of per capita value-added in the manufacturing sector,” he said.