The European Green Deal: A Green Transformation Roadmap for Turkey and Companies

In recent years, the global impacts of the climate crisis—both environmental and socio-economic—have become increasingly evident. Rising sea levels and frequent extreme weather events are clear indicators of these changes. From negative effects on agriculture to the disruption of ecosystems, the consequences are being felt across multiple sectors. Local and national measures alone are insufficient to address these challenges, making international cooperation and agreements critically important.

In this context, the European Green Deal represents a major step in the European Union’s efforts to combat climate change. The Deal outlines Europe’s goal to become climate-neutral by 2050 and specifies the steps required to achieve it. At the same time, it offers a roadmap for creating a sustainable economic model, decoupling economic growth from resource use.

This blog explores what the European Green Deal is, its core objectives, what it means for Turkey and Turkish companies, and how Turkey can play a role in this major transformation. Read on to discover how individuals and organizations can actively participate in this global shift.

What is the European Green Deal?

The European Green Deal is a comprehensive action plan designed to make the EU climate-neutral by 2050. It aims to promote sustainable economic growth, reduce environmental impacts, protect natural resources, and advance social equity.

The Deal also addresses global environmental challenges such as climate change, biodiversity loss, and environmental degradation, while creating economic opportunities through investment in green technologies and innovation.

Europe’s Environmental Vision

Since the industrial era, Europe has faced numerous environmental challenges, including population growth, industrialization, and energy consumption, leading to air and water pollution and, more recently, climate change.

To address these issues, the EU developed a sustainable future vision, with the European Green Deal at its core. The Deal integrates environmental, economic, and social considerations, adopting a strategy that separates economic growth from the overuse of natural resources.

Objectives of the European Green Deal

The Green Deal aims to combine economic development with sustainability. It encourages:

• Reducing carbon emissions: cutting greenhouse gas emissions by 50-55% by 2030 and achieving climate neutrality by 2050.

• Expanding renewable energy: meeting 32% of energy consumption from renewables by 2030.

• Increasing energy efficiency: improving energy efficiency by 32.5% by 2030.

• Protecting natural resources: safeguarding ecosystems and biodiversity, and promoting sustainable agriculture and fisheries.

• Promoting a circular economy: encouraging waste management, recycling, and product reuse.

These goals provide a clear roadmap for a sustainable future, guiding both individuals and businesses in contributing to the EU’s vision.

Key Components of the Green Deal

1. EU Carbon Border Adjustment Mechanism (CBAM)

   • Ensures that imported products meet EU emission standards.

   • Initially covers electricity, emission-intensive industries, and aviation, and will include maritime emissions from 2026.

   • Expands to building and road transport under ETS-2, with revenues supporting a green and fair transition.

2. EU Emissions Trading System (ETS)

   • A carbon market where companies trade emission allowances under a set cap.

   • Encourages investment in clean technologies and energy efficiency, supporting EU emission reduction targets while fostering economic growth.

3. Circular and Sustainable Industrial Policies

   • Encourages resource efficiency, waste minimization, and sustainable product lifecycles, from design to recycling.

The Importance for Companies

Due to the EU’s economic influence, companies trading with or within the EU must comply with the sustainability standards outlined by the European Green Deal. Non-compliance could lead to missed business opportunities and difficulties adapting to new regulations.

Adopting Green Strategies

• Companies need to reduce carbon footprints, improve waste management, enhance energy efficiency, and adopt circular economy principles.

• Transitioning to green energy, zero-waste targets, and sustainable product lifecycles are key steps.

Investing in Green Technologies and Innovation

• Green investments not only meet environmental responsibilities but also provide strategic advantages.

• Innovations in carbon capture, energy storage, and circular solutions can position companies ahead of competitors.

Opportunities and Challenges of Green Transformation

• Economic benefits include growing demand for sustainable products, lower energy costs, and long-term profitability from green investments.

• Challenges involve initial investment costs, structural business changes, and sectoral adaptation.

Turkey and the European Green Deal

Given its economic and historical ties with the EU, Turkey’s alignment with the European Green Deal is both economically and strategically crucial. The Green Deal impacts not only the EU’s internal market but also all trading partners, including Turkey.

• Carbon Regulations in Trade: Carbon taxes reshape competition and require Turkish companies, especially those in carbon-intensive sectors, to adapt to remain competitive.

• Turkey’s Carbon Footprint: Turkey’s high emissions from industry and energy sectors necessitate a reevaluation of policies to maintain sustainable trade relations with the EU.

Turkey’s Green Deal Action Plan

• Led by the Ministry of Trade, the plan (published in 2021) outlines sector priorities, steps for green transformation, and strategies for a sustainable economy.

Conclusion

The European Green Deal marks the beginning of a global sustainability movement, and aligning with it is increasingly a necessity for companies. The Deal offers opportunities such as energy efficiency gains, rising demand for sustainable products, and long-term economic benefits.

However, compliance also involves high initial costs and structural adaptations. Here, Carbon Gate plays a critical role by offering sector-specific sustainability services:

• Emission Measurement, Carbon Offsetting, Consultancy, and Certification.

• ISO 14064 and GHG Protocol-compliant measurements enable companies to track their carbon footprint.

• Consultancy services help implement carbon reduction strategies.

• Certification provides independent validation of sustainability efforts.

By leveraging Carbon Gate’s end-to-end services, companies can navigate the green transition efficiently, turning challenges into strategic advantages.

Start your green transformation today—contact Carbon Gate to explore tailored solutions for your business.