The potential impacts of the carbon border adjustment on Turkey-EU trade

The effects of climate change are becoming more intense day by day. It is essential to take urgent measures and develop strong policies to combat climate change. One of the most important decisions to be taken in this direction is carbon dioxide emissions into the atmosphere. Our atmosphere is being damaged day by day. With the implementation of the Paris Agreement, it has brought a new process in the climate system. The most important element of this process is the condition that all parties to the agreement should take measures to mitigate their emissions in accordance with 'common but differentiated responsibilities'. As part of its efforts in this direction, the EU has determined the transformation it aims for within the scope of the 'European Green Deal' plan, which places climate change and environmental concerns at the centre of all political approaches on a global scale in the fight against climate change. SDCC is primarily an application developed to prevent the risk of carbon leakage created by the ETS. In this way, instead of pushing carbon-intensive production out of Europe, it will ensure that it contributes to global emission reduction. On the other hand, this practice is intended to require that every country with which the EU trades in order to reduce emissions should be subject to this practice. The European Commission states that pricing carbon is the most effective way to achieve its climate goals. The concern of moving industries to countries with softer policy frameworks, often referred to as carbon leakage, has been an important mobilising factor for climate policies. The 'Carbon Regulation Mechanism at the Border' established by the EU aims to reduce the carbon emissions emitted to the atmosphere by imposing an additional financial charge on the carbon emission amounts of the imported goods, while aiming to eliminate the carbon leakage danger. In this study, the possibilities and effects of the SDCC implementation in Turkey-EU border trade will be analysed in the context of green theory.