29.06.2021

TSKB Economic Research Publishes its Report entitled “The European Version of the Green Deal: A Step towards Shaping the Climate Agenda”

Within the scope of efforts to tackle climate change, TSKB Economic Research published a report focused on the European Green Deal’s farm to the fork, circular economy and carbon border adjustment mechanism strategies. The report entitled “The European Version of the Green Deal: A Step Towards Shaping the Climate Agenda”, highlights the opportunities as well as the obligations which could arise from the European Green Deal process for countries like Turkey. The study underlined that climate had assumed a permanent place on the political agenda and while the European Green Deal was currently under the spotlight, an American or Asian version could emerge in the near future. The report emphasises that the only way to prepare for each version is to work towards the Green Transformation, adding that Turkey could strengthen this transformation even further with the support of funds provided by international development finance institutions.

TSKB Economic Research, which is sustaining its research activities directed at tackling climate change as it works towards Turkey’s sustainable development, has published a new report on the “European Version of Green Deal: A Step Towards Shaping the Climate Agenda”. The report, which reviews the European Green Deal (EGD)’s roadmaps and draws attention for the necessity to adapt the climate policies which become a permanent fixture on the world’s policy agenda to Turkey’s special conditions.

The report, prepared by Feridun Tur, Cihan Urhan, Cem Avcıoğlu and Gül Yücel from TSKB Economic Research, highlights that Turkey’s climate friendly transformation will strengthen with the support of the funds provided by international development finance institutions.

EUR 260 billion in additional investment required for the EU’s transformation to a climate friendly economy

The EGD was published in December 2019 with the objectives of increasing the efficient use of resources, shifting to a clean circular economy, reducing pollution and achieving a complete transformation of the economic model through these methods. The EU is thus aiming to transform itself to a competitive economy with net zero emissions by 2050, where economic development is not reliant on the use of resources. It is estimated that the transformation will require EUR 260 billion in additional investment each year.

The report emphasises that Europe’s policy makers are sending clear signals regarding the direction of the change in combating climate change through the EGD, and recommends that Turkey develops a sound policy framework by taking the EU’s signals on board and adapting them to its own special conditions, conducting an active communication campaign directed at market participants.

The report states that Turkey will contribute to ensuring its domestic policy design is compatible with global green policy incentives and design mechanisms through its climate friendly transformation stating, “While the Green Deal’s European version is the one on the agenda now, the American or Asian version may be around the corner and developing countries may come up with their own versions in the future. The only way to be prepared for all versions is to work towards the green transformation. We should not discount the prospect that stricter climate policies could pave the way to green innovations, thus increasing competitive strength in the long term. Studies show that important progress can be achieved both in terms of national income and greenhouse gas emissions for Turkey within the scope of the green economic transformation scenario. Turkey’s climate friendly transformation will gain momentum with the support of the funds provided by international development finance institutions. Whether the source of the deal is Europe or not, the important point is seeking to do the right things for the right reasons.”

Turkey to be one of five countries to be most affected by the Carbon Border Adjustment Mechanism regulation

The EU has realised an important achievement in cutting emissions with the help of the Emission Trading System (ETS). However, the European Commission’s decision to set more assertive objectives with the EGD may increase the risk of carbon leakage by increasing carbon prices. The report remarked that the Carbon Border Adjustment Mechanism (CBAM) has emerged at the forefront as one of EGD’s key elements in limiting this risk, underlining that the CBAM is aiming to ensure that products imported into the EU are levied with a financial obligation based on their carbon foot print, thus ensuring that the prices of imported goods more accurately represent the carbon content of the products.

Farm to Fork Strategy to achieve a 50% reduction in food waste by 2030

The EU has determined a strategy directed at agricultural and food systems under the name of the “Farm to Fork Strategy” while moving towards its objective of becoming carbon neutral by 2050. The objectives set in the scope of this strategy represent a holistic approach directed at bringing down emissions in the food and agriculture industry, ranging from production strategies to distribution channels and consumer preferences. The report refers to the “new green work model” included in the Farm to Fork Strategy published within the scope of Green Deal, and reviews the possible economic outcomes of achieving the goals foreseen by this strategy for the healthy and sustainable agricultural product and food production.

According to the report; “the policy document published by the EU is setting a new work model for the farmers carrying out carbon reduction in their activities. The main idea behind the model is to transform production by achieving a 50% reduction in the total usage of chemical pesticides by 2030 and guaranteeing land productivity. As a result of this, the rate of fertilizer usage is set to be cut by 20% by 2030.

European Commission aiming for a 70% recycling rate for all packaged waste by 2030

While EU countries produce an average of 5 billion tonnes of waste per year, only 38% of this waste is recycled. According to the report, linear production, which is a traditional method and based on the ‘take-make-disposeprinciple, with the consumption of these products, not only causes the destruction of natural resources but also increases the fragility of the ecosystem. The EU is aiming to benefit from the opportunities which recycling will provide, both in terms of preventing economic loss and reducing environmental harm to a minimum. In this scope, among the many strategies determined within the EGD, the circular economy also ranks among the most important and has become one of the main elements of the EGD.

The “European Version of the Green Deal: A Step Towards Shaping the Climate Agenda” report can be found on the link. Please click.

Türkiye Sınai Kalkınma BankasıTurkey’s comprehensive environmental portal cevreciyiz.com is supported by TSKB.