There is no doubt that the climate is warming. The atmosphere and oceans have become warmer, the amount of snow and ice has decreased, sea levels have risen and greenhouse gas levels in the atmosphere have increased. Human activity is the number one cause of global warming, which began in the mid-20th century according to international assessment reports.
The cement sector follows the developments in the international agreements related to climate change to which our country is signatory and party to aimed at limiting global warming, including:
• The United Nations Framework Convention on Climate Change
• The Kyoto Protocol
• The Paris Agreement We are closely following EU legislation and the scope of the EU Green Deal:
• EU 55 Harmonization Package
• Revisions to the EU Emissions Trading System (ETS)
• EU Border Carbon Regulation Mechanism We are also following the following legislative processes on a national basis:
• Draft National Law on Climate Change
• Draft National Emissions Trading System
• Türkiye's Green Deal Action Plan
Reports on Greenhouse Gases
Reports on greenhouse gas emissions should be drawn up in accordance with the criteria laid down in the Communiqué on the Monitoring and Reporting of Greenhouse Gas Emissions. Reports on greenhouse gas emission are prepared annually based on data collected in accordance with the plan drawn up for the monitoring of greenhouse gas in the previous year. The Communiqué on Monitoring and Reporting and the Guide for the Creation of a Monitoring Plan prepared by the Ministry of Environment, Urbanization and Climate Change delineates how a greenhouse gas report should be drawn up. Verifications of greenhouse gas emission reports should also comply with the criteria laid down in the Communiqué on the Verification of Greenhouse Gas Emission Reports and the Accreditation of Verification Bodies.
Reduction of Greenhouse Gas
Cement production accounts for around 5% of global emissions. The emissions arising out of cement production can be classified as both direct and indirect. Direct emissions are plant-controlled emissions (emissions from decarbonization and fuel). Indirect emissions, on the other hand, are emissions that result from the operation of a plant, but originate in other facilities (such as consumption of electrical energy).
Position of the Turkish Cement Sector
The Turkish cement sector carries out studies and makes investments to take advantage of the following factors related to the reduction/control of greenhouse gases:
• Increased energy efficiency • Use of alternative fuels (especially biomass waste)
• Reduction of clinker/cement ratio (increasing the use of cement with additives)
• Adopting new and innovative technologies (e.g. carbon capture, storage and use)
Cement factories in our country carry out the necessary greenhouse gas monitoring, reporting and verification processes on a regular basis every year in accordance with the applicable legislation.
Carbon Trading Systems
Türkiye cannot benefit from the flexibility mechanisms in the Kyoto Protocol related to emission trading. In our country, there is no national emission trading system or emission tax system connected to the Kyoto Protocol. Projects related to the Voluntary Carbon Market, which was established based on a principle of environmental and social responsibility, have been developed and implemented for a long time.
Position of the Turkish Cement Sector
Our industry closely follows the global emissions trading system and tax systems in the European Union and the rest of the world. Projects carried out in our country related to the emission markets under the auspices of the government are followed by TÜRKÇİMENTO and sectoral representatives, and if necessary, contributions are made to related studies.
European Union Legislation Followed
EU 55 Harmonization Package
The draft “Fit for 55” package, incorporating the EU Green Consensus pledging the EU's carbon neutrality by 2050 within its scope, was published by the EU Commission on 14.07.2021. Fit for 55 is the EU's most comprehensive prevention mechanism, published as a single package. The package includes targets to reduce the EU's carbon emissions by 55% by 2030 from those recorded in 1990. Through this harmonization package, the EU intends to completely revise its climate and energy policies. The package, which is an important component of the EU Green Deal, includes revisions to the EU SKDM, the EU ETS, the energy tax directive, and renewable energy and energy efficiency directives. The package also includes revisions to other documents, including the Directive on Promoting Energy Production from Renewables, the Energy Taxation Directive, the Effort-Sharing Regulation for non-ETS sectors and the Forest Strategy, all of which concern European industry.
EU Emissions Trading System (ETS)
The EU Emissions Trading System (ETS) is a mechanism that aims at reducing emissions into the atmosphere, limiting the amounts of greenhouse gases released into the atmosphere and making such emissions subject to permission. Based on the cap on the amounts of greenhouse gases emitted to the atmosphere, the total amount of emissions is determined for the sectors subject to ETS on an annual basis. For this defined limitation, carbon allowances are granted to companies that are subject to ETS, with each carbon allowance equating to 1 tonne of CO2 emissions. This system is designed to encourage companies to switch to low-emission technologies. The ETS is one of the most important mechanisms of the EU in its efforts to combat climate change. The EU submitted proposed revisions to the Emissions Trading System (ETS) on July 14, 2021 within the scope of Fit for 55 aimed at reducing the emissions of industries subject to ETS in accordance with the EU Green Deal. All proceeds from the sale of EU ETS allowances will be earmarked for climate-related spending.
EU Border Carbon Regulation Mechanism
The EU Frontier Carbon Adjustment Mechanism is intended to prevent the risk of carbon leakage in Europe. The EU applies carbon pricing within the scope of the ETS, and aims to gradually reduce the free allowances granted under the ETS to zero. However, reducing free allowances to zero triggers a rise in carbon costs and increases the risk of carbon leakage. A carbon pricing equivalent to the EU’s CBAM and ETS is planned to be applied to products imported into Europe. This will allow an importer to pay an amount to the EU member country that is importing its product based on the amount of carbon embedded in the imported product. This regulation will be applied to heavy industries such as cement, iron-steel, aluminum, fertilizer and electricity in the first stage. Accordingly, the cement sector will be affected by this regulation, as Türkiye exports both cement and clinker to Europe.
The EU CBAM transition period will begin on October 1, 2023. During this period, reporting will be made only for data collection purposes. The implementation of EU CBAM will begin in 2026 with the phasing out of the EU ETS free allowances.
Position of the Turkish Cement Sector
TÜRKÇİMENTO, as the representative of the Turkish cement sector, participate at the annual Climate Change Conferences related to the United Nations Framework Convention on Climate Change, and occasionally makes sectoral presentations. It shares any developments coming to light in those meetings with its members both during meetings and online.
When invited by the government, TÜRKÇİMENTO is represented in relevant commissions/working groups addressing such issues such as EU Carbon Border Adjustment Mechanism and the Green Deal under National Climate Change Law and ETS.
Last Updated: 3 August 2023