The impact of carbon costs on business decisions in the framework of sustainable development

Consumption of the needs of future generations with both industrial consumption and individual consumption has led to the emergence of sustainability and sustainable development concepts by arguing that economic growth can not be unlimited. The study is focusing on environmental sustainability, which is one of the main pillars of sustainable development. In environmental sustainability; for future generations, the enterprises encounter sustainable costs in terms of ensuring the continuity of the consumed natural resources. The carbon costs are amongst the most important components of sustainable costs. After the industrial revolution where the understanding of global warming and climate change is increased by the anthropogenic greenhouse gas emissions, governmental and non-governmental organizations came together under the United Nations, in order to reduce the negative externalities caused by their emissions, have developed a number of agreements and projects. As a result of these agreements, a new commodity occured that can be traded, so mandatory and voluntary carbon trading has begun as an item to be used in carbon market. The aim of the study is assesing the impact of carbon costs on business decisions that businesses may encounter in the context of sustainable development. For this purpose; a case study in cement industry, which is one of the major emitter sector, designed. Five carbon cost reduction scenarios regarding the formation of a national emission trade system are designed to compare the possible costs and revenues related to carbon emissions mitigation. The business evaluated in the context of carbon emissions and regarding costs is assesed under the concepts of laws and standards, carbon market instruments, alternative raw materials and fuel consuption, carbon reduction technologies and clean energy production, and issues that can affect related decisions are considered.