• Within the framework of the European Green Deal, a tax mechanism was also regulated and the Border Carbon Mechanism (BCM) mechanism was announced as an EU regulation.

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• The European Green Deal aims to make Europe carbon neutral by 2050.

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• The regulation was established to target the imports of 5 energy-intensive sectors and to regulate and price the reduction of carbon emissions of these sectors.

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• The start date of the SDGs covers a 3-year transition period starting from January 1, 2023. As of January 1, 2026, it is planned to be fully implemented. During this transition period, the relevant sectors are required to submit an ESDM declaration. This declaration will cover the direct accounting of greenhouse gas emissions for products imported into the EU.

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       These 5 energy intensive sectors are as follows;

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• Iron - Steel

• Aluminum

• Cement

• Fertilizer

• Electric

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Turkey is the second largest exporter to the European Union in terms of products covered by the Border Carbon Regulation Mechanism, with €8.05 billion (S&P Global)

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The 12 Countries Most Affected by Carbon Regulation at the Border

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