Turkey is preparing to establish its own Carbon Border Adjustment Mechanism (CBAM), marking another step in its efforts to align domestic carbon pricing with European Union requirements.

The initiative, outlined in the country’s updated Green Deal Action Plan for 2026–2030, places Turkey’s CBAM policy alongside its developing Emissions Trading System (ETS) as priorities for industrial competitiveness during COP31.

The Turkish Ministry of Trade published the revised strategy on November 10, with the document setting out 11 policy areas, 41 objectives and 142 actions covering the country’s green and industrial transformation.

According to the plan, authorities intend to undertake an impact assessment and prepare legislation for a national border carbon mechanism during 2027.

The proposed framework is intended to work alongside Turkey’s domestic ETS, whose implementing regulation entered into force in August 2026. A pilot phase is now underway, with the system designed to cover major industrial and energy installations.

The EU’s CBAM entered its definitive phase on January 1, 2026, requiring importers of covered products to account for embedded emissions through certificate obligations. Its initial sectors include iron and steel, aluminium, cement, fertilisers, electricity and hydrogen.

The European Union is particularly important to Turkey’s exporters. SteelOrbis reports that the bloc accounts for approximately 47% of Turkish exports of CBAM-covered products, leaving domestic manufacturers exposed to changing carbon-related trade costs.

The announcement also comes after reports that the EU is planning on exempting the UK from its CBAM requirements, as the latter will be deploying its own border levy, largely synchronized with the European one.

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