The EU’s CBAM mechanism reshapes global trade by regulating carbon-intensive imports and requiring transparent, verifiable emissions data.
The European Union’s Carbon Border Adjustment Mechanism (CBAM) is reshaping global trade dynamics. The purpose of this mechanism is not only to protect the competitiveness of manufacturers operating within the EU but also to prevent the relocation of carbon-intensive production to other regions and encourage low-carbon industrial practices worldwide. For this reason, CBAM affects not only EU member states but also countries with strong trade relations with the EU—particularly companies operating in Türkiye.
In its initial phase, CBAM applies to carbon-intensive product categories such as iron and steel, aluminium, cement, fertilizers, electricity, and hydrogen. These sectors are included because their production processes generate high levels of greenhouse gas emissions. In Türkiye, the most affected industries include metal manufacturing, construction supply chains, energy equipment, and raw material production—especially companies exporting or importing goods linked to the EU market.
The implementation consists of two stages. The transition phase, which began on October 1, 2023, continues until the end of 2025. During this period, no financial obligations apply; however, embedded emissions of reported products must be submitted accurately and transparently. Starting in 2026, CBAM enters full enforcement, requiring companies to purchase CBAM certificates and pay financial levies based on the carbon content of imported goods.
For companies operating in Türkiye, CBAM is not only an export-related issue. It also affects supply chain structures, compliance processes, production strategy, and long-term decision-making. Therefore, the question is no longer “Does CBAM affect my company?” but rather “How can we prepare effectively for CBAM?”
Three primary areas require attention: carbon footprint measurement, traceable and reliable supply chain data, and digitalized sustainability reporting infrastructure. Many organizations still rely on manual data collection and non-standardized information exchange. This creates reporting delays and increases the likelihood of inaccuracies.
Verified and consistent emissions data form the foundation of CBAM compliance. As a result, companies must quantify emissions across their own production processes as well as emissions embedded in upstream supply chains. Establishing a complete emissions inventory is a critical step.
Digital tools are increasingly becoming essential in this effort. A growing number of businesses in Türkiye are evaluating platforms such as CO2 Manager as structured support for compliance requirements. Solutions of this kind enhance data reliability, streamline reporting cycles, and enable continuous monitoring of emission-reduction plans. Beyond efficiency, digital tools are expected to become a requirement for verifiable CBAM reporting in the near future.
CBAM should therefore not be interpreted solely as a regulatory obligation but as a signal that transparency, low-carbon production, and verified environmental data are becoming the new standard in international trade.
Although CBAM may seem complex, the first steps can be straightforward. Key early actions include developing an overview of CBAM-relevant products, building internal awareness of compliance expectations, and requesting emissions data from suppliers. These practical steps help ensure accurate reporting during the transition phase and support long-term carbon management planning.
CBAM represents more than a new fee structure or reporting obligation. It marks an acceleration toward more climate-aligned production and trade models. For companies in Türkiye, the most effective approach is to view CBAM not only as a regulatory requirement but as an opportunity to strengthen competitiveness in the European market.
Preparing early, establishing a robust data system, and implementing digital carbon-management tools will be essential. Proactive action now will reduce financial and operational risks after 2026 while supporting long-term resilience and market position within the EU.
European Commission – Official CBAM Framework