VOLKAN BOZAY, THE CEO OF TÜRKÇİMENTO, Attended the “ICCI – International Energy and Environment Fair and Conference” as Panelist

Volkan Bozay, the CEO of TÜRKÇİMENTO, attended the Sectoral Reflections panel discussion on the EU’s Carbon Border Adjustment Mechanism during the ICCI –International Energy and Environment Fair and Conference – held in Istanbul from May 24 to 26, 2023.  

The panel, moderated by Bahar Güçlü, Deputy DG for International Agreements and EU at the Turkish Ministry of Trade, began with a briefing by Güçlü on the EU’s Carbon Border Adjustment Mechanism (CBAM). Güçlü shared insights on recent developments and her assessments of the impact analyses conducted in collaboration with the World Bank and the European Bank of Reconstruction and Development (EBRD).   

Bozay discussed CBAM’s impact on the cement industry, highlighting its reflections, and added: “CBAM will enter into force in its transitional phase as of October 1, 2023, to end in 2025. The transitional phase will solely allow reporting for data collection. The phasing-out of free allocation under the EU Emissions Trading System (ETS) will take place in parallel with the CBAM financial adjustment phased in 2026. The gradual phasing-out of free allocation against carbon leakage will take place between 2026 and 2034 under the EU ETS. Therefore, we can expect free allocations to be completely phased out by 2034. In this case, it is safe to say that the CBAM will be fully operational in 2034. With the complete phase-out of free allocation across the EU in 2034, a carbon price will be paid for all carbon emissions in exported products. In other words, the carbon price to be paid by EU importers will be increased gradually”. 

Transition To Low Carbon Cement Production is a Must  

Bozay underlined that the cement sector is well-prepared for the implementation of the Carbon Border Adjustment Mechanism with their efforts in recent years and added: “Our industry has defined a roadmap that outlines the necessary initiatives. These initiatives comprise implementing sustainability transformation programs, increasing the utilization of bio-mass-based alternative fuels, creating cement using low-clinker and alternative raw materials, enhancing energy efficiency, and exploring and implementing innovative technologies. It is imperative for all manufacturers to take advantage of this opportunity and align with both CBAM and our country’s goal of achieving net-zero emissions by 2053”.