The introduction of the Carbon Tax and the Construction Sector: How Will the EU Green Deal Affect Costs in Türkiye? has become one of the most critical discussion topics among developers, manufacturers, and building owners. As the European Union accelerates its Green Deal and Carbon Border Adjustment Mechanism (CBAM), Türkiye’s export-oriented construction sector faces increasing obligations related to embodied carbon, Environmental Product Declarations (EPDs), and lifecycle reporting. For companies aiming to remain competitive in European markets, adapting to these new carbon cost structures is no longer optional—it is a strategic necessity.
As ERKE Sustainability Consultancy, we support manufacturers, developers, and project owners in transitioning to low-carbon production, improving environmental reporting, and ensuring compliance with the evolving EU framework.
Understanding the Carbon Tax Under the EU Green Deal
The EU Green Deal sets an ambitious objective: making Europe the first climate-neutral continent by 2050. To reach this target, the EU introduced the Carbon Border Adjustment Mechanism (CBAM)—a system that effectively applies a carbon tax on emissions embedded in imported products.
CBAM initially targets industries such as cement, steel, aluminum, electricity, fertilizers, and hydrogen, but its indirect impact on the construction sector is far broader. Given that most construction materials rely heavily on these carbon-intensive inputs, Türkiye’s construction industry will be directly affected by rising carbon costs.
Key external reference:
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The official CBAM regulation overview by the European Commission explains the transition timeline and sectors included:
https://climate.ec.europa.eu/eu-action/carbon-markets/eu-emissions-trading-system-eu-ets_en
Why the Carbon Tax Matters for Türkiye’s Construction Sector
1. Türkiye’s export dependency
A significant portion of Türkiye’s construction materials—cement, steel, aluminum, and glass—are exported to Europe. Under CBAM, exporters must report and eventually pay for emissions embodied in these products. This creates new cost pressures that will reshape pricing structures in the entire value chain.
2. Rising carbon intensity transparency
Carbon intensity metrics, once voluntary, will become standardized and mandatory. Manufacturers without verified carbon data through LCA and EPD documentation will face competitive disadvantages in EU markets.
For companies seeking verified emissions documentation, ERKE’s dedicated expertise in EPD consultancy can support a full transition to EU-aligned reporting:
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Learn more about EPD processes here: https://erkeconsultancy.com/environmental-product-declarations/ (Internal Link 1)
The Growing Importance of EPDs and Carbon Reporting
The EU Green Deal and CBAM have already accelerated demand for Environmental Product Declarations (EPDs), which quantify environmental impacts including Global Warming Potential (GWP). Without an EPD, exporters may be subjected to default, and usually higher, carbon values—leading to increased tax burdens.
How EPDs reduce carbon tax exposure
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Provide credible product carbon footprint data
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Enable manufacturers to demonstrate lower emissions than sector averages
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Support competitive pricing against higher-emission imports
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Help companies adopt long-term decarbonization strategies
Companies producing multiple construction materials increasingly rely on EPD portfolios to maintain access to EU markets. ERKE’s EPD and LCA services help minimize compliance burden and ensure continuous alignment with the EU’s latest reporting frameworks.
For deeper insights on product environmental impacts, explore ERKE’s sustainability services:
https://erkeconsultancy.com/corporate-sustainability-consultancy/
Expected Cost Impacts of the EU Green Deal on Türkiye’s Construction Sector
Short-Term Impacts
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Administrative compliance costs from required reporting and data collection
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Verification fees associated with LCA and EPD documentation
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Operational adjustments in manufacturing processes
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Potential pricing increases for exports to the EU
Medium-Term Impacts
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Carbon tax payments when the CBAM moves from transitional reporting to full financial enforcement
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Pressure to switch to low-carbon technologies such as renewable energy and alternative fuels
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Demand shifts toward greener, EPD-certified materials
Long-Term Impacts
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Transformation of supply chains with sustainability embedded as a core requirement
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Market premium for low-carbon materials
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Enhanced export competitiveness for companies that decarbonize early
A reliable technical overview of material impacts can be found in this industry report by the European Construction Industry Federation
https://www.fiec.eu/priorities
CBAM Compliance: What Turkish Manufacturers Must Prepare For
CBAM requires exporters to provide:
1. Verified Emissions Data
Manufacturers must report direct and indirect emissions associated with their production activities. Without verified data, EU customs authorities apply standardized emission factors—which may not reflect the true (often lower) values for Turkish producers.
2. Digital Reporting Infrastructure
Companies must submit emissions data through the EU CBAM transitional registry. This requires digitalized environmental reporting systems.
3. Carbon Reduction Roadmaps
Companies demonstrating year-over-year carbon reductions will avoid long-term exposure to escalating carbon costs.
For a broader policy context, the European Climate Law includes further details about the timeline toward 2050 neutrality (External Link 3):
https://climate.ec.europa.eu/eu-action/european-climate-law_en
The Role of the Construction Sector in Türkiye’s Green Transition
The construction industry—responsible for nearly 40% of global CO₂ emissions when accounting for materials and operations—plays a transformative role. In Türkiye, the sector is increasingly integrating low-carbon design strategies, green building certifications, and material supply chain transparency.
Expected sector-wide trends
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Increased demand for LEED, BREEAM, and EDGE certifications
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Greater reliance on EPD-backed materials
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Adoption of renewable energy in manufacturing plants
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Lifecycle carbon assessments becoming standard in major infrastructure projects
Turkish construction companies that adapt early will not only minimize carbon tax exposure but also secure long-term access to European markets.
How ERKE Supports Companies in Navigating Carbon Tax and EU Green Deal Challenges
ERKE Sustainability Consultancy provides end-to-end support for manufacturers, developers, and project owners through:
Our Key Services
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Lifecycle Assessment (LCA)
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Environmental Product Declaration (EPD) preparation and verification support
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Carbon footprint calculation and reduction planning
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Compliance consultancy for CBAM and EU Green Deal requirements
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Corporate carbon management and reporting
To explore how we can support your transition to low-carbon operations, contact our team through our sustainability services pages linked above.
Conclusion: A Strategic Opportunity for the Turkish Construction Sector
The Carbon Tax and the Construction Sector: How Will the EU Green Deal Affect Costs in Türkiye? is more than a regulatory obligation—it is a catalyst for modernization, efficiency, and long-term competitiveness. Companies that invest in accurate emissions reporting, low-carbon technologies, and transparent environmental documentation will gain an advantage in the evolving European market.
ERTKE is committed to guiding Türkiye’s construction and manufacturing sectors toward a more resilient, compliant, and sustainable future.
