IKV Chairman Ayhan Zeytinoğlu attended the Green Transition for SMEs Project Workshop held in Kocaeli on 24 February 2022 and delivered an opening speech. In the project workshop, organised by TÜRKONFED in cooperation with Konrad Adenauer Foundation in association with Akbank and hosted by the Eastern Marmara Federation of Industrialists’ and Business Associations (DOĞUMARSİFED), IKV Chairman Zeytinoğlu discussed the European Green Deal and its possible effects on Turkey, especially in regard to SMEs. IKV Chairman Zeytinoğlu made the following remarks:

“Green transition means change for all sectors, but especially for carbon-intensive industries. In the process of transition to low-carbon production, our country is required to establish an Emissions Trade System (ETS) and a compliance carbon market in line with the EU. As it is known, the EU presented the proposal for the Carbon Border Adjustment Mechanism (CBAM) within the scope of the “Fit for 55” package las July. Accordingly, exports to the EU in five product groups -electricity, aluminium, steel, cement and fertilizers- will be subjects to carbon certificates as of 2026. The cost of this will be determined according to the prices in the EU ETS system. We know that Turkey is among EU's leading importer, especially in cement, steel and aluminium. Therefore, CBAM regulation may cause loss of competitiveness for Turkey. It may be possible for Turkey to create an ETS system within its borders and transfer these additional costs to domestic transition. In this respect, it is crucial for exporters and companies providing input for exporters to reduce their carbon footprints and take the necessary measures to realize this.

In addition, product standards are changing in line with environmental and climate targets, reuse, recycling and waste management are becoming the new norm within the scope of the circular economy. As production and consumption methods and habits change, financial and technological support should be provided, especially for SMEs. In this process, there are new opportunities presented by the green economy. Our SMEs can turn green transition into an opportunity by tacking to these new business areas. Of course, access to financial resources is a key element of this transition. There are opportunities provided by the EU such as IPA funds, research and innovation programmes like Horizon Europe, institutions such as the European Investment Bank and the European Bank for Reconstruction and Development. The green transition will protect the environment and climate, make our planet healthier and more sustainable, and set off economic dynamism and new employment opportunities. In this context, in addition to with public institutions, non-governmental organisations such as TOBB, IKV and TÜRKONFED assume a very important role. We must work together to make this transition possible. The EU has embraced an approach of forming alliances to accelerate the transition to renewable energy and green technologies. These alliances bring together relevant stakeholders such as public institutions, foundations, firms, research institutions, NGOs and universities. The capacities and skills of all stakeholders are combined for common transition with initiatives such as the European Clean Hydrogen Alliance, European Battery Alliance and the European Climate Pact. The approach of forming alliances both inside and outside of the country can also play an important role for Turkey’s transition."