Navigating The 2026 Carbon Frontier: Preparing Turkish Industry For Simplified CBAM Compliance

1. Introduction

    Following the European Union’s (“EU”) launch of the Green Deal in 2019, the transition into a green economy has been framed not only as an environmental imperative but also as a new growth strategy. The Green Deal seeks to combine the reduction of emissions with the preservation of economic competitiveness. To translate these objectives into practice, the EU has relied on and expanded market-based instruments such as the Emissions Trading System (“ETS”) and the Carbon Border Adjustment Mechanism (“CBAM”), that work together to encourage the reduction of emissions and address the risk of carbon leakage through carbon pricing. To ensure a smooth transition as the initial phase ends on January 1, 2026, the EU recently adopted Regulation (EU) 2025/2083, which introduces significant simplifications and strengthening measures to the CBAM framework.