We Add Value to Industry and the Region, We Build the Future!

A Step to the Future from Salihli OIZ

A technical information seminar on the Border Carbon Regulation Mechanism (BCRM) was held in Salihli Organized Industrial Zone. In the seminar, the effects of Carbon Regulation at the Border on companies exporting to European Countries were discussed.Organized by Salihli Organized Industrial Zone Directorate, Salihli Chamber of Commerce and Industry and Izmir-based SIMTE Consulting Company, the participants learned about carbon regulations by learning the implementation issues of the Carbon Regulation Mechanism at the border (CCRM) implementation regulation in detail with the technical information training. Salihli Chamber of Commerce and Industry President İbrahim Yüksel, Chamber Assembly Chairman Süleyman Oral, Salihli Organized Industrial Zone Chairman Mehmet Demir and Board Member Mustafa Kemal Sönmez, OIZ Manager Çağrı Duygu and SIMTE Consulting Company Founder and Board Member Author Mustafa Tuğrul Edis, as well as company officials operating in and around Salihli OIZ attended the seminar. The seminar, which took place with the presentation and narration of SIMTE Consulting Company Director Yıldız Gönüllü, lasted about three hours.Additional investment costs, tax burden, criteria for supplier selection, competitive advantage and market loss, climate law and ETS system, customs controls and import permits, SKDM declaration and import rights were discussed at the meeting. Speaking at the seminar, Yıldız Gönüllü, Director of SİMTE Consultancy, said that with the carbon regulation to be implemented at the EU border, companies within the scope exporting to EU countries will face at least % 10 additional investment costs. Underlining that these businesses should revise their existing structures and invest in environmentally friendly technologies, Yıldız Gönüllü said; "It is emphasized that % 25 of the export income of the companies within the scope will go to tax with the implementation of the SDCC. This will bring financial obligations for companies exporting to EU countries. Companies will have to allocate a significant portion of their income to taxes." SIMTE Consulting Company Director Yıldız Gönüllü continued his speech as follows: "The Border Carbon Regulation Mechanism (BCRM) is recognized as an important element of the European Green Deal. This mechanism aims to reduce greenhouse gas emissions due to increasing carbon fees as a result of the tightening of the Emissions Trading System (ETS) implemented in the European Union and to prevent the risk of carbon leakage of producers turning to countries that do not implement the emissions trading system. By applying the EU Emissions Trading System for carbon emissions emitted during production to imported products, the SDCC aims to encourage cleaner production in other countries and protect the competitiveness of EU producers. In the first phase, 6 sectors with a high risk of carbon leakage, such as cement, iron and steel, aluminum, fertilizer, hydrogen and electricity, are covered by the SDCC. The transition period started on October 1, 2023 and will last until the end of 2025, during which EU importers will not be financially obliged but will report embedded emissions in imported products subject to the ESDM mechanism. The financial obligation for the ESDM will start in 2026, at which point EU importers will purchase ESDM certificates by declaring the quantity of goods imported and the quantities of embedded emissions. The fees for the ESDM certificates will be published weekly by the European Commission based on the average price of the previous week in the EU Emissions Trading System. Importers will be able to deduct this price from their final payment if they can prove, with verified information from third country producers, the carbon price paid at the production stage of the imported products."Source: Behzat AKCAN

Leave A Comment