CBAM / SKDM

CBAM is a reality, and it is happening.
For Turkish industrials, it has become a border tax variable.

What is CBAM?

The Carbon Border Adjustment Mechanism (CBAM) is the European Union’s mechanism to equalize carbon pricing between EU producers (subject to EU ETS carbon costs) and non-EU exporters. It applies to carbon-intensive sectors including Steel, Cement, Aluminum, Fertilizers, Electricity and Hydrogen.

Under CBAM:

  • Embedded emissions must be reported

  • Verified emissions will determine cost exposure

  • Importers will purchase CBAM certificates linked to EU ETS carbon prices

In simple terms:

If your product has carbon embedded in it, Europe will price it.

How we solve electricity-related emissions

We design and execute long-term renewable energy procurement strategies that:

  • Reduce or eliminate Scope 2 emissions

  • Hedge electricity price volatility

  • Improve carbon intensity metrics

  • Strengthen CBAM reporting credibility

1. Off-site Renewable PPA Structuring
Long-term fixed or indexed pricing tied to new renewable generation assets.

2. Additionality & Traceability Design
Ensuring carbon reduction is defensible under CBAM reporting scrutiny.

3. Financial Optimization
Balancing cost of energy, hedge profile, and EU ETS exposure risk.

4. Regulatory Alignment
Structuring contracts compatible with evolving EU carbon accounting rules.