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Energy efficiency solutions stand out in transition to CBAM

The transition period under the European Union's (EU) Carbon Border Adjustment Mechanism (CBAM), which aims to reduce carbon emissions, is reaching its end. The process, which started in 2023 with the obligation to report emissions, will be completed in 2026 with the introduction of financial obligations. Businesses can avoid these obligations, which will be like a carbon tax, through energy efficiency practices.

Energy efficiency solutions stand out in transition to CBAM

The EU's carbon tax on imports of carbon-intensive products covers the aluminum, cement, iron and steel, electricity, hydrogen and fertilizer sectors. Free collections under the EU Emissions Trading System (ETS) will be phased out from 2026 and completely abolished in 2034. Implementation will make it mandatory to reduce carbon emissions and make production processes more sustainable.

Onur Ünlü, Chairman of the Board of Directors of the Energy Efficiency and Management Association (EYODER), stated that energy efficiency studies should be prioritized. Reminding that Turkey has an energy efficiency potential of %32 in industry, Ünlü emphasized the importance of businesses following a 6-step roadmap until 2026.

6-Step Roadmap for Preparing for CBAM

Ünlü listed the steps that businesses should follow in order to implement energy efficiency practices as follows:

1.Detailed Energy Audit: Stating that businesses should identify inefficiencies by analyzing energy consumption data and develop projects to reduce energy costs, Ünlü said, “In this way, businesses can take the first step by optimizing their processes.”

2.Saving Actions: Ünlü stated that % 5-10 energy and resource savings can be achieved with practices such as eliminating insulation deficiencies and preventing steam and air leaks.Micro Energy Efficiency Investments: Emphasizing the importance of projects such as waste heat recovery and renewal of lighting systems, Ünlü stated, “Such low-budget investments can increase energy efficiency by %10-15.”

3.Micro Energy Efficiency Investments: Emphasizing the importance of projects such as waste heat recovery and renewal of lighting systems, Ünlü stated, “ These types of low-budget investments can increase energy efficiency by %10-15.”

4.Macro Energy Efficiency Investments: Stating that projects such as boiler room modernization and air conditioning system transformation require higher investment costs, Ünlü added, “These projects can contribute %20-30  to energy savings and pay for themselves in 2-3 years.”

5.Exiting Fossil Fuel: Stating that heat pumps offer an effective solution to reduce energy consumption costs and emissions, Ünlü continued: “These systems serve both heating-oriented and emission reduction strategies and pay for themselves in 3-4 years.”

6.Use of Renewable Energy: Stating that businesses can establish their own power plants or realize sustainable energy transformation by supplying from renewable energy sources, Ünlü noted that this step has a critical role in compliance with the CBAM.

International ESCO Symposium to be hosted in Istanbul

An International ESCO Symposium will be held in Istanbul on May 6-8, 2025 within the scope of EYODER's Global ESCO Network membership. Stating that the event will make a great contribution to the development of energy efficiency practices in Türkiye, Ünlü noted, “Energy service companies, public and local government representatives from 43 countries will come together at this event. It will be an important networking and information sharing opportunity for the Turkish energy efficiency sector.”

Ünlü further stated that a certification process will be initiated to raise the standards of the sector and added, “With this process, the competencies of the enterprises will be revealed transparently and the sector's achievement of energy efficiency targets will accelerate.”

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