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The Fit for 55 package is a set of proposals to review and update EU legislation and implement new initiatives to ensure that EU policies are in line with the climate targets adopted by the Council and the European Parliament.

The Fit for 55 package refers to the EU’s target to reduce net greenhouse gas emissions by at least 55% by 2030. The proposed package aims to harmonise EU legislation with the 2030 target.

Countries signing the Green Deal hope to mitigate the effects of the global climate crisis when they implement the action plans they have determined. With this agreement, carbon emissions are expected to be minimised in the determined sectors and more environmentally friendly technologies are expected to be integrated into production processes. The Green Deal, an international agreement, has the power to positively change the future of the planet with the participation of 193 countries.

A regulation system that will begin to be implemented under the Carbon Border Adjustment Mechanism (CBAM), originally called Carbon Border Adjustment Mechanism, Green Agreement on January 1, 2023. Within the framework of this regulation, it is aimed to prevent European Union countries from producing and importing products from countries with lower emission targets.
 
With the Carbon Regulation on the Border, a tax is added to these imported products for companies that intend to create a kind of carbon leak by producing their products in non-EU countries. This tax is planned to be applied in the fertilizer, iron-steel, aluminum, electricity and cement sectors, where the risk of carbon leakage is highest. Thus, it is aimed that the production processes will be completed within the EU.
 
The years 2023-2026 are called a transition period for this practice and do not require a financial obligation for importers. During this 3-year period, importers will have to report their carbon emissions in their import processes every quarter of the year. Importers need to obtain a CBAM certificate for the products they import after 2026.

Trade relations between Turkey and EU countries in many areas, especially the sectors mentioned above, are expected to be affected by the Carbon Regulation at the Border mechanism. In order for exporters to be less affected by this situation, it is of great importance to rearrange their production processes to be as low-emission and environmentally friendly as possible.

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