Payments must be made starting January 1 for carbon emissions caused by steel, aluminum, cement, and other heavy industrial products imported into the European Union.

China, India, Russia, and South Africa have opposed the EU's measure, stating that it amounts to protectionism, while some countries have also questioned its compatibility with World Trade Organization (WTO) rules. Egypt became the first country to request an exemption from the EU's SKDM. Egypt is implementing its own domestic carbon tax to protect local industry from the EU ETS and states that the steel sector could cover 74% of the financial burden of the carbon tax.

The EU argues that the SKDM will prevent carbon leakage, i.e., the relocation of industries to countries with less stringent sustainability requirements. According to the Commission's data, SKDM revenues are expected to reach approximately €1.5 billion by 2028.

Source: Euronews
Publisher: Republic of Turkey Ministry of Trade, General Directorate of Trade Research and Risk Assessment