COP31: Turkey to develop its own CBAM as EU carbon costs reshape trade

🔦 Navigate COP31 unmissable events with our Insider's Guide

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Carbon Herald or enjoy below:

🗞️ Driving the news: Turkey plans to develop its own Carbon Border Adjustment Mechanism (CBAM), with an impact assessment and legislative framework scheduled for 2027
• Announced in its updated Green Deal Action Plan for 2026–2030, the initiative aims to complement the country's emerging Emissions Trading System (ETS) and help domestic industries respond to the EU's carbon-related trade requirements

🔭 The context: Turkey's ETS implementing regulation entered into force in August 2026, with a pilot phase covering major industrial and energy installations
• The EU's definitive CBAM phase began on January 1, 2026, requiring importers of covered goods to account for embedded emissions
• The EU accounts for approximately 47% of Turkish exports of CBAM-covered products, exposing manufacturers to changing carbon costs

🌍 Why it matters for the planet: Carbon pricing and border adjustment mechanisms can encourage industries to reduce emissions while limiting the competitive advantage of production in jurisdictions with weaker climate policies
• Their effectiveness will depend on credible emissions data, compatible accounting methods and recognition of carbon prices already paid

⏭️ What’s next: Turkey plans to prepare legislation for its domestic CBAM in 2027 and develop a digital emissions-data mechanism between 2027 and 2028
• The challenge would be to align its carbon market with international trade rules while maintaining industrial competitiveness and supporting its 2053 net-zero ambition

📈 One stat: The EU accounts for approximately 47% of Turkey's exports of CBAM-covered products, according to SteelOrbis

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