In recent years, it has been observed that the climate crisis has begun to make both its natural and socioeconomic effects felt around the world. Traces of these changes can be seen in many areas, such as rising sea levels and frequent extreme weather events.
Local and national measures are inadequate in the fight against these changes, whose effects are felt in many areas, from the negative impact of agriculture to the deterioration of ecosystems. Therefore, international cooperation and agreements are of great importance.
In this context, a step called the European Green Deal is important in the European Union's fight against climate change. This agreement sets out Europe's goal of becoming a climate-neutral continent by 2050 and identifies the steps that need to be taken to achieve this goal. It also provides a road map on how to create a sustainable economic model by separating economic growth from the use of natural resources.
This blog post will discuss in detail the European Green Deal, its main objectives, what it means for Turkey and Turkish companies, and what role Turkey can play in this great transformation.
Read on to learn how individuals and organizations can take part in this major change.
What is the European Green Deal?
The European Green Deal is a comprehensive action plan created by the European Union to achieve its the goal of becoming a climate-neutral continent by 2050. This plan aims to promote sustainable economic growth, reduce environmental impacts, protect natural resources and advance social justice.
It also aims to help Europe tackle global environmental challenges such as climate change, biodiversity loss and environmental degradation while creating economic opportunities by investing in green technologies and innovation.
Europe's Environmental Vision: Foundations of the Green Deal
Europe has faced various environmental problems since industrial development. The increasing population has brought about problems such as intense industrialisation and energy consumption, air and water pollution, and more complex issues such as climate change.
To overcome these problems, the European Union has created a sustainable future vision and placed the Green Deal at the center of this vision. The Green Deal is the EU's adoption of a strategy that brings together environmental, economic and social issues and separates economic growth from the use of natural resources.
Towards a Sustainable Future: The Purpose of the Green Deal
The main aim of the Green Deal is to combine economic development with sustainability. This includes reducing environmental impacts across all sectors, protecting natural resources and investing in innovative technologies, in line with the EU's goal of becoming a climate-neutral continent by 2050.
This vision aims to advance social justice as well as environmental responsibility. The Green Deal also aims to improve the quality of life of individuals and ensure that they live in a cleaner and healthier environment.
Goals of the European Green Deal
The specific goals of the Green Deal show how Europe can achieve a sustainable future:
- Reducing Carbon Emissions: It aims to reduce greenhouse gas emissions by 50-55% by 2030 and to become a completely climate-neutral continent by 2050.
- Renewable Energy: It is aimed to meet 32% of energy consumption from renewable energy sources by 2030.
- Energy Efficiency: It is anticipated that a 32.5% increase in energy efficiency will be achieved by 2030.
- Protection of Natural Resources: The aim is to protect natural resources through measures such as protecting ecosystems and biodiversity and promoting sustainable agriculture and fishing practices.
- Circular Economy: It is aimed to promote the circular economy through waste management, and recycling and reuse practices.
These goals are concrete steps that show how Europe plans to achieve a sustainable future. The Green Deal is a guide on how both individuals and businesses can contribute to these goals.
Basic Headings of the Green Deal
The European Green Deal offers strategic approaches under several critical headings to combat climate change, promote the sustainable use of natural resources and establish a balance between economic growth and environmental protection. Some of these topics are:
EU Border Carbon Regulation Mechanism
The EU Border Carbon Regulatory Mechanism offers a similar approach to the EU Emissions Trading System (EU ETS). This mechanism aims to ensure that products coming from outside the EU also comply with emission targets.
- The mechanism is not limited to electricity production, emission-intensive industrial production and aviation emissions, but also plans to include maritime transportation emissions by 2026.
- Within the scope of ETS-2, it has expanded to include emissions from fossil fuels in buildings and road transportation. In addition, the Social Climate Fund is also included in this scope.
- In the system, there is a determined upper limit of emissions and businesses are required to submit allocations equal to their annual emissions at the end of the year.
- In the ETS, businesses below the limit can sell allowances to businesses over the limit. In this way, companies that can reduce their emissions gain an economic advantage.
- Emissions trading revenues are used to finance a green and fair transformation.
For more detailed information about the Border Carbon Regulation Mechanism, you can read our article here.
What is the EU Emissions Trading System?
The EU Emissions Trading System (ETS) is a carbon market created by the European Union to support economic growth while combating climate change. This system allows companies to buy and sell carbon credits according to the rate at which they reduce their emissions, under a set emissions cap.
ETS encourages companies to invest in cleaner technologies and increase energy efficiency. In this way, it is aimed to achieve the EU's greenhouse gas emission reduction targets at an economical cost. The system also aims to create infrastructure for sustainable growth in the long term by supporting the development of a low-carbon economy.
EU Circular and Sustainable Industrial Policies
By adopting the circular economy model, the European Union has created a series of policies and strategies to increase resource efficiency, minimize waste and promote the sustainability of products throughout their life cycle. These policies are implemented in a wide range of areas, from product design to recycling and waste management.
The Importance of the Green Deal for Companies
The economic power of the European Union makes it inevitable for companies involved in global trade to closely follow the EU's policies and practices. Companies that trade directly or indirectly with the EU must comply with the sustainability standards and rules set out by the European Green Deal. This agreement provides not only environmental steps but also strategic steps towards economic sustainability. If companies active in the EU market do not adopt the Green Deal's innovations, they may risk both missing commercial opportunities and experiencing difficulties in adapting to new regulations.
Compliance Process of Companies with the Green Agreement
In order to be in an effective and profitable position in the EU market, companies must make a transformation in line with the Green Deal. This process not only adopts sustainable production methods; It also includes the use of green energy, acting in accordance with the circular economy principle, raising employee awareness about sustainability and investing in green innovation. Companies that adopt these changes, in line with the core principles and objectives of the EU Green Deal, can achieve both economic and environmental benefits.
Adopting Sustainability Strategies
Companies that want to transition to a business model compliant with the Green Deal should adopt sustainability strategies such as carbon footprint reduction, waste management, energy efficiency and circular economy. For example; Steps such as switching to renewable energy sources, setting a zero waste target or applying sustainability principles throughout the life cycle of products can be taken.
Investing in Green Technologies and Innovations
Investments in green technologies enable companies not only to fulfil their environmental responsibilities but also to gain a strategic advantage in line with the goals of the EU Green Deal. Innovative investments, especially in areas such as carbon capture, energy storage and circular economy solutions, take companies one step forward.
Green Transformation: Economic Opportunities and Challenges
Green transformation is both an opportunity and a challenge for companies. Economic advantages include increased consumer demand for sustainable products and services, and reduced costs thanks to energy efficiency, and high profitability in the long term from investments in green technologies.
However, complying with the principles envisaged by the Green Deal may initially bring difficulties such as high investment costs, structural changes in business models and sectoral adaptation. However, when these challenges are overcome, companies can achieve not only environmental gains but also economic gains.
Turkey and the Green Deal: Why is it important?
In the context of its historical and economic relations with the European Union, Turkey's compliance with the European Green Deal has both economic and strategic importance for the country's economy. While the EU aims for a transformation towards a green economy with the Green Deal announced in 2019, this change closely concerns not only its own internal market but also all countries that have trade relations with the EU. This new vision aims to reduce the carbon footprint by encouraging the use of clean energy.
Carbon Regulations in Trade with the European Union
Carbon tax appears not only as an environmental protection measure, but also as a tool that reshapes commercial competition. Turkey's compliance with this new tax regulation in its exports to the EU is of critical importance in terms of competitiveness. Turkish companies, especially those operating in carbon-intensive sectors, may face high costs with this taxation.
Turkey's Carbon Footprint and the Future of Trade with the EU
Turkey is a country with high carbon emissions due to its intense activities in the industrial and energy sectors. Strict carbon emissions limitations introduced by the European Green Deal may negatively affect Turkey's exports to the EU. In this context, Turkey's re-evaluation of its policies and strategies to reduce carbon emissions is of critical importance for the sustainability of its commercial relationship with the EU.
Green Deal Action Plan: Turkey's Response
Turkey did not remain unresponsive to Europe's Green Deal and created the "Green Deal Action Plan" under the leadership of the Ministry of Commerce. This action plan, published in the Official Gazette in 2021, reveals in detail how Turkey will realize its green transformation, which sectors will be transformed as a priority and what steps will be taken in this process. The action plan determines Turkey's transition strategy to a sustainable economy at both national and international levels.
You can reach here Green Deal Action Plan.
Conclusion
The Green Deal is one of the steps taken by the European Union towards a sustainable future, and these steps seriously affect the course of the global economy. Especially companies operating in the EU market feel closely the opportunities and challenges brought by this agreement. For companies in Turkey and other countries, the Green Deal brings with it many economic opportunities such as energy efficiency and increased demand for sustainable products and services.
However, complying with the standards brought by this agreement may initially bring obstacles such as high costs and adaptation difficulties.
At this point, the importance of companies that provide sector-specific sustainability services, such as Carbon Gate, emerges. The services offered by Carbon Gate - Emission Measurement, Carbon Offsetting, Consultancy and Certification - facilitate companies' compliance with the Green Deal. Emission measurements carried out according to ISO 14064 and GHG Protocol allow companies to consciously monitor their carbon footprint.
Carbon Gate's consulting services help businesses identify and implement strategies to reduce their carbon footprint. Finally, the certification service enables companies to independently and reliably verify their sustainability efforts.
As a result, the Green Deal marks the beginning of a global sustainability movement. Adapting is becoming an inevitable necessity for companies.
However, in this process, Carbon GateThe services it offers make significant contributions to companies in achieving this transformation more easily, efficiently and effectively.
To get to know Carbon Gate services better and start the green transformation in your company today, Let's contact us now!
