Turkey's climate envoy revealed that the EU's planned Carbon Border Adjustment Mechanism (CBAM) played a significant role in persuading Turkey to finally ratify the Paris climate accord last month. Turkey had withheld its consent for years, seeking reclassification as a developing country to gain access to certain climate funding. However, the looming threat of the CBAM and a financial support agreement of US$3.2 billion from France, Germany, and the World Bank were instrumental in Turkey's decision.
Turkey considers the CBAM as a substantial threat due to the EU accounting for 48% of its exports. To mitigate the impact, Turkey is currently developing a climate law that is expected to be ready within 3-4 months. The law will address "Green Deal issues" and introduce a carbon price as a means of countering the effects of the CBAM. While the specifics of Turkey's national Emissions Trading System (ETS) are yet to be determined, the climate envoy stated that it would resemble the EU ETS.
Earlier this year, the European Bank for Reconstruction and Development warned that Turkish businesses could face additional costs exceeding €750 million under the CBAM. The bank encouraged Turkey to ratify the Paris accord, establish an ETS, and set net-zero emissions targets. Turkey announced its net-zero target last month, aiming for 2053. However, the country is yet to submit an updated climate action plan to the UN under the Paris Agreement. Its current plan aims to reduce emissions by 21% by 2030, considering a baseline of "business as usual." While Turkey has not committed to reducing methane emissions or phasing out coal (which supplies approximately 25% of its electricity), it has indicated that a new climate plan will be submitted soon. Turkey continues to pursue its reclassification as a developing nation.
