Turkey's Steel Industry Takes New Steps to Reduce Carbon Footprint

The green transformation and border carbon regulation, which have become key issues in the steel industry in recent years, were discussed at a conference organized by the Turkish Steel Exporters Association (ÇİB). The conference titled "EU Border Carbon Regulation Mechanism and Green Transformation in the Turkish Steel Sector" aimed to address these critical topics. Held on December 10, 2024, the event featured 16 speakers and attracted nearly 200 participants.

Uğur Dalbeler, Vice Chairman of the Board of Directors of the Turkish Steel Exporters Association, noted that green transformation has been the most significant agenda item in the steel industry for the past five years, emphasizing that Turkey is among the countries producing the cleanest steel in the world. Dalbeler stated, "There is approximately 400 million tons of steel trade in the global market. The Turkish steel sector stands out as the cleanest and most advantageous. Utilizing this, we have the potential to positively steer the regression we experience in industrialization. However, we need to be well-prepared and manage it efficiently with minimum costs."

Dalbeler explained that emissions in steel production are assessed in three phases: "Firstly, there's Scope 1 emissions produced by the process, which works in our favor. We are not bad in Scope 2 concerning energy. Scope 3 pertains to logistics, where Turkey unfortunately holds a slightly disadvantaged position. We need to plan and manage these effectively from the outset. To achieve that, we need to raise awareness among employees, companies, and all stakeholders. This is the primary purpose of the conferences we organize."

He shared that approximately 2 tons of emissions are produced for every ton of steel produced globally, adding, "This amount will continue to increase until 2030 and will then decline. However, in Turkey, scrap-based production accounts for 75% of total production, which reduces our emissions below 500 kilograms. This means we are a quarter of the world average. Therefore, we can say that our sector is as green as it can be."

The conference began with an opening speech by Ali Rıza Oktay, Head of the Department of Mining, Metals, and Forest Products under the General Directorate of Export. The first session examined the SKDM legislation and its effects on the Turkish steel sector, featuring Uğur Dalbeler along with Trade Expert Cansu Dinçer Zeybek from the Ministry of Trade and Dr. S. Armağan Vurdu, Secretary-General of the Istanbul Mineral and Metals Exporters Union.

The second session focused on reducing carbon footprints and analyzing the roadmap of the Turkish steel sector. In the first part, speakers included Pınar Özgün Yavaş, Deputy Director of REACH Global Services, Rajesh Kumar Singh, Senior Director at Sphera, Dr. Akif Koca, Partner at PwC, and Elif Semra Ceylan, Senior Manager at Ernst & Young. The second part featured Burak Oğuz, Partner at Consulta, Murat Günaydın, Partner at Deloitte, Director Dora Üreten from Escarus, and Begüm Mermeroğlu from Qanaq Consultancy.

The third session addressed the financing of green transformation and incentives in the Turkish steel sector, with speakers including Setenay İyigün, Trade Expert from the Ministry of Trade, Mehmet Aslan, President of TEYDEB at TÜBİTAK, Yeşim Şimşek, Deputy General Manager of TKYB, Meral Murathan, Deputy General Manager and Sustainability Leader at TSKB, and Dr. Kübra Ulutaş Tapo, Deputy Secretary-General of TIM.