Minister of Commerce Ömer Bolat spoke at the "Decarbonization for Competitiveness: The New Equation of Industry" panel at the "Business and Investment Summit" organized by the Union of Chambers and Commodity Exchanges of Turkey (TOBB) within the scope of COP31 held in Antalya.
Stating that the decarbonization process in the industry in Türkiye should have two main results, Bolat said that these are reducing emissions and increasing competitiveness.
Bolat pointed to the recommendations of the Industrial Decarbonization Working Group and stated that these are three areas of importance.
"BUSINESSES NEED CLEAR AND PREDICTABLE REGULATIONS"
Bolat pointed out that, first of all, a reliable carbon pricing mechanism should provide the confidence and predictability that companies need to invest, and said, "Projects for decarbonization in the industry require large-scale investments and take time to yield results. Therefore, businesses need clear and predictable regulations, including future carbon costs." he said.
Emphasizing that Türkiye's Climate Law forms the legal basis of the Emission Trading System (ETS), which started its pilot implementation phase in 2026, Bolat explained that they updated the Green Deal Action Plan under the coordination of the Ministry to cover the 2026-2030 period.
Secondly, Bolat stated that carbon costs are no longer limited to countries and stated that climate-related regulations are increasingly shaping international trade and the competitiveness of the industry.
Stating that the European Green Deal and the regulations within this framework have significant effects on international trade, especially for countries such as Turkey, Bolat said that one of the most prominent examples of this is the Border Carbon Regulation Mechanism (SKDM), which directly affects exporters.
Bolat pointed out that Türkiye was the EU's second largest supplier of products within the scope of SKDM during the transition period, and said:
"Approximately 48 percent of our exports in these sectors were made to the EU in 2025. We accept the aim of SKDM to prevent carbon leakage. However, in the implementation of the mechanism, the real emission performance must be accurately reflected and the carbon prices paid in Türkiye in line with the applicable rules must be taken into account. In this context, we are working together to solve practical problems, including default values, verification arrangements and evaluation of electricity produced from renewable sources, through the Turkey-EU SKDM Working Group we have established."
"WE MUST ENSURE THAT NEW REQUIREMENTS PROVIDE ENVIRONMENTAL BENEFITS"
Emphasizing that resource efficiency and the transition to a circular economy, reducing emissions, and using raw materials more efficiently are equally important in increasing the competitiveness of the industry, Bolat said, "This transformation brings with it new sustainability requirements at the product level, including recycled content rules, environmental footprint calculations and digital product passports. Therefore, we must ensure that these new requirements provide real environmental benefits without creating unnecessary trade barriers or additional administrative and financial burdens for the industry." he said.
Thirdly, Bolat stated that plans for decarbonization in industry should be transformed into concrete investment decisions, and at this point, it is important for governments, development banks, technology providers and industrialists to work together to finance cleaner production and create reliable demand for low-carbon products.
Stating that they have taken important steps to create a predictable policy and regulatory framework for industrial transformation and to introduce green financing, Bolat gave examples of their work in this context.
Minister Bolat stated that the revenues obtained through the national ETS are expected to be used to support green transformation and decarbonization in the industry.
Pointing out that decarbonizing the industry is not just about setting ambitious targets, Bolat said:
"This process requires the right policies, access to finance and close cooperation with industry. As President of COP31, Turkey is determined to work with our international partners to accelerate investments in industrial decarbonization while increasing the long-term competitiveness of our industry."
