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Turkish Trade Minister Ömer Bolat attended the Climate Development Summit (İKAZ), where the economic benefits of environmental policies and the role of trade in this transformation were discussed within the framework of COP, the Paris Climate Agreement, and the Green Deal. The program evaluated Turkiye's green transformation, focusing on renewable energy sources and innovative technologies as part of its growth strategy.

In the program, which included representatives from the business world and NGOs, Minister Bolat emphasised that the summit would significantly contribute to new policies. He noted that global trade is undergoing a significant transformation with standards and regulations aimed at reducing the carbon footprint, presenting important opportunities for both the economy and production processes. Bolat also stated that the current process would enhance competitiveness in the economy and contribute to the sustainable growth of exports.

Bolat mentioned that in 2019, the European Union announced its Green Deal Adaptation Program roadmap, and Turkiye ratified the Paris Agreement in 2021. The government has adopted a net-zero carbon target by 2053 and implemented the Green Deal Action Plan accordingly. He highlighted that they encourage and aim for companies to increase energy efficiency, use resources more effectively, and achieve digital transformation in collaboration with all stakeholder institutions. These supports aim to facilitate exporters' compliance with international standards.

Bolat also pointed out that they are investing in pioneering technologies for transitioning to a carbon-neutral economic structure. "Steps taken in areas such as electric vehicles, renewable energy systems, and battery technologies will significantly contribute to Turkiye's global competitiveness. Our esteemed Deputy Minister of Energy highlighted that 20 years ago, wind energy, solar energy, and geothermal energy were not even discussed in Turkiye. Today, with significant strides in these areas, we have achieved over 40% of our total energy production from renewable clean energy sources, including hydropower," he said.

Minister Bolat emphasized that green transformation is not just an environmental policy but also a growth strategy. He stated that while transitioning to low-carbon industrial models, they are implementing policies that reduce dependence on fossil fuels and increase energy supply security.

Bolat stressed the importance of international cooperation in combating climate change, noting that Turkiye is open to cooperation at both national and international levels to achieve climate change goals. He also emphasized that some measures taken during the green transformation process should not turn into unilateral trade measures.

"Everyone knows that the European Union is one of the leading actors in the global green transformation process. With the Green Deal announced in 2019, the EU aims not only to reduce carbon emissions but also to make its trade partners part of this process. In this context, the Carbon Border Adjustment Mechanism (CBAM), which will be fully implemented in 2026, will be a significant turning point in the global trade system. CBAM is a mechanism that envisages applying a carbon tax on the import of carbon-intensive products into the EU. This regulation, which will initially significantly affect sectors such as iron and steel, aluminum, cement, electricity, and fertilizers, has made countries exporting to the EU reduce their carbon emissions and make their production processes more sustainable," he said.

Bolat highlighted the critical importance of the CBAM regulation for Turkiye, stating, "We export 41% of our total exports to the 27 member countries of the European Union. In 2023, our exports of the mentioned products to the EU amounted to $9.8 billion, while our exports of these products to the world totalled $23.3 billion. In this context, our exports of these products to the EU accounted for 42% of our total exports to the world in 2023. This situation imposes new costs and reporting requirements on Turkiye's exports in carbon-intensive sectors."

Bolat pointed out that the EU's current policies not only aim to protect the environment but also reshape the rules of global trade. "As Turkiye, we believe and constantly tell EU officials that these regulations should not turn into unilateral and discriminatory trade measures. The carbon border adjustment measures implemented by the EU should be designed in full compliance with the rules of the global trade system and should not have a protective, discriminatory nature for their national production," he emphasised.

Minister Bolat also stated that they are working closely with relevant sector stakeholders to ensure that the trade sectors in Turkiye are not adversely affected by these developments. He highlighted the critical importance of advancing the international trade system in a fair and inclusive manner for both environmental sustainability and economic cooperation.

"We believe that developed countries should provide fair financing, technology transfer, and technical assistance mechanisms to developing economies and countries, recognizing their historical responsibility for carbon emissions. In this context, we are developing strategies aligned with environmentally friendly production and trade goals within the framework of the modernization negotiations of the customs union structure we have with the European Union. The technical and political cooperation mechanisms with the EU are progressing in a way that protects Turkiye's interests in this transformation process," he said.

Bolat also noted that they have established various support mechanisms to facilitate exporters' compliance with CBAM. "In this context, we have implemented the 'Responsible' Support Program, a consultancy system consisting of three main stages. Under the program, we guide our exporters to reduce their carbon footprint, digitize their processes, and increase their energy efficiency. The Ministry of Trade provides grants of up to 10 million Turkish liras, covering 50% of the expenses incurred for the training and consultancy services they receive for five years. This will significantly ease their compliance with carbon reporting standards and the environmental standards demanded by the European Union," he added.