Turkey and the European Union held a working group meeting last week to discuss technical aspects of the Carbon Border Adjustment Mechanism (CBAM). The session was co-chaired by Deputy Trade Minister Mustafa Tuzcu and Gerasimos Thomas, head of the European Commission's tax and customs unit.

Talks centered on how Turkey's renewable energy system could be factored into CBAM calculations for exports to the EU. Officials also looked at verifying emissions data so Turkish exporters can use actual values instead of default benchmarks. Other topics included a review of default emission values for certain sectors and whether allowances from the EU Emissions Trading System (ETS) could be reflected under CBAM. There was also discussion on deducting the cost of Turkey's planned carbon tax from CBAM liabilities.

Last July, Turkey moved to establish its own carbon market under its first climate law, aiming for net-zero emissions by 2053. Companies covered by the system will need to secure emission permits within three years of the regulation taking effect.