There are reactions to the carbon tax at the border

Criticism of the EU's border carbon tax comes from the US, China and Africa. The union's trading partners accuse the new practice, which was announced to begin on October 1, as protectionism, and some countries are negotiating with Brussels to apply exemptions to their companies. A study conducted by Berlin-based think tank Adelfi on export data in areas to be taxed under CBAM shows that Turkey is one of the five countries that will be most affected by the CBAM implementation, along with Russia, China, England and Norway.

The 'border carbon' implementation, which the European Union plans to launch from October 1, 2023, is facing objections from some African economies, as expected, as it would violate competition rules from the union's biggest trading partners, China and the USA. During the weekend, it is stated that in the negotiations that will ensure the finalization of the new mechanism in the EU, the countries that will be affected by the implementation are holding talks on the subject with the EU officials.

The Carbon Border Adjustment Mechanism (CBAM) was targeting six sectors in its trial phase, which will begin on October 1: Rebar, steel, cement, aluminum, fertilizer, electricity and hydrogen. In order to equalize the carbon price paid for goods imported from 3rd countries such as Turkey, a difference will be taken from the products of companies that do not comply with the EU's climate standards, and companies importing into the EU will be required to purchase CBAM certificates in order to pay this difference.

Turkey is among the 5 countries most affected

A study by Berlin-based think tank Adelphi, which provides consultancy on climate, environment and development, shows that Turkey, along with Russia, China, England and Norway, is one of the five countries that will be most affected by the CBAM implementation. According to Adelfi's study, 49.4 percent of exports, which will require additional carbon tax payment, are made from these five countries in the six sectors that the EU has agreed on at the first stage - rebar, steel, cement, aluminum, fertilizer, electricity and hydrogen - under CBAM. According to the study carried out on the average annual exports to the 27-member EU in these sectors between 2015-2019, the economy that is expected to be most affected by the application by producing 16.7 percent of the products covered by Russia: Russia: 5.24 billion dollars rebar & steel; $3.3 billion aluminum; $1.6 billion fertilizer; 450 million dollars of electricity. China produces 10.1% of the products in the scope: In 2015-2019, there is an annual average of 5.15 billion dollars of rebar & steel exports to the EU and aluminum exports of approximately 1.28 billion dollars. There is also a fertilizer export of 76 million dollars.