A climate-neutral model that decouples the economy from resource use. The European Green Deal, Climate Law, CBAM, CSRD/ESRS, the EU Taxonomy and Türkiye’s green-transition footing — all sourced.
Updated: 13 June 2026The figures and legal references on this page are based on official/primary sources.
What is the green transition?
The green transition is the process of moving economic activity to a climate-neutral, circular model by decoupling it from resource consumption and greenhouse-gas emissions. The European Union frames this goal not as a cost line but as a growth strategy: the European Green Deal (COM/2019/640, 11 December 2019) aims to turn the EU into a climate-neutral economy by 2050 and to decouple growth from resource use.
For companies in Türkiye, the green transition is no abstract European agenda. The EU absorbs roughly 40% of Türkiye’s exports, which turns EU green legislation into a direct market condition. This page sets out the framework an exporter or manufacturer will face — from the Green Deal to CBAM, from CSRD to the EU Taxonomy — with sources. Running this green axis together with the digital axis is exactly what the twin transition is about.
The European Green Deal
The European Green Deal (COM/2019/640) is the growth strategy that gathers all of the EU’s green policies under one roof. It spans eight policy areas: clean energy, sustainable industry, building renovation, sustainable transport, “farm to fork” food, biodiversity, zero pollution and the circular economy. The core commitment is clear: climate neutrality by 2050 and decoupling growth from resource use.
The European Climate Law
The document that makes the Green Deal’s political goal legally binding is the European Climate Law (Regulation (EU) 2021/1119, in force 29 July 2021). It sets three numerical anchors:
2050
Climate neutrality
A legally binding net-zero emissions target for the EU.
2030
At least 55% net reduction
Versus 1990; net removals contribution capped at 225 Mt CO₂eq.
2040
90% reduction
Interim target; the Climate Law amendment entered into force in April 2026.
Fit for 55 and EU ETS / ETS2
To reach the 2030 target, the Commission unveiled the “Fit for 55” package (COM/2021/550) in 2021 — a 13-part body of legislation made up of eight revisions and five new proposals. It includes the EU ETS, CBAM, the renewable energy directive (RED III), energy efficiency, LULUCF and the Social Climate Fund.
At the heart of the package is the Emissions Trading System (EU ETS): it caps emissions and prices allowances on the market. The annual reduction factor is 4.3% for 2024-2027 and 4.4% from 2028; the ETS 2030 target is a 62% reduction versus 2005. A separate system, ETS2, will operate from 2027 covering fuels for buildings and road transport, targeting a 42% reduction by 2030.
CBAM — the Carbon Border Adjustment
The instrument that affects exporters most directly is the Carbon Border Adjustment Mechanism (CBAM, Regulation (EU) 2023/956). CBAM prices the embedded emissions of carbon-intensive goods imported into the EU, to level them with the ETS obligation borne by EU-based producers. It covers six sectors: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.
The mechanism works in two phases. During the transitional period there was only reporting; in the definitive period the financial obligation begins. The difference can be summarised as follows:
Transitional period
Definitive period
Date
1 Oct 2023 – 31 Dec 2025
From 1 January 2026
Obligation
Quarterly reporting only
Certificate purchase + reporting
Financial cost
None
CBAM certificate for embedded emissions
Scope
Cement, iron & steel, aluminium, fertilisers, electricity, hydrogen
Same six sectors
The CBAM certificate price is based on the EU ETS price in the definitive period. An important nuance: in 2026 the price is set as a quarterly average, and from 2027 on a weekly basis (the first quarterly price applies from 7 April 2026). This turns CBAM into a measurable cost line for Turkish producers — and makes accurate calculation of embedded emissions, i.e. a solid measurement infrastructure, a necessity.
CSRD and ESRS
The data side of the green transition is governed by the Corporate Sustainability Reporting Directive (CSRD, Directive (EU) 2022/2464; published in the Official Journal on 16 December 2022, in force 5 January 2023). CSRD replaces the former NFRD and ties reporting to double materiality: a company must disclose both the effect of sustainability matters on its own financials and the effect of its own activity on the environment and society.
The technical language of reporting is the European Sustainability Reporting Standards (ESRS; Delegated Reg. 2023/2772, adopted 31 July 2023). The set spans ESRS 1 and 2 (general) plus E1-E5 (environment), S1-S4 (social) and G1 (governance). The critical point for Turkish companies comes from the supply chain: large in-scope EU customers, to produce their ESRS E1 climate data, request Scope 1-2-3 data from suppliers. The scope thresholds have shifted over time; for the current scope, refer to the 2025 “Omnibus” package.
The EU Taxonomy
The EU Taxonomy (Regulation (EU) 2020/852) is a common classification system that determines whether an economic activity counts as “environmentally sustainable”; it standardises the language of green finance. An activity must make a substantial contribution to at least one of six environmental objectives, comply with the “do no significant harm” (DNSH) principle for the others, and meet minimum social safeguards.
01Climate change mitigation
02Climate change adaptation
03Sustainable use of water and marine resources
04Transition to a circular economy
05Pollution prevention and control
06Biodiversity and ecosystems
The circular economy
The green transition is not limited to energy and carbon; it targets the production-consumption model itself. The Commission’s Circular Economy Action Plan (COM/2020/98, 11 March 2020) aims for all packaging on the EU market to be reusable or recyclable by 2030. The starting point is plain: the extraction and processing of raw materials accounts for more than half of global greenhouse-gas emissions. Circularity is a powerful lever that joins the green and digital axes by using resources sparingly from the outset.
The Türkiye context
Türkiye is gradually institutionalising alignment with the EU. The Green Deal Action Plan (Presidential Circular 2021/15) was published in the Official Gazette on 16 July 2021; it comprises nine headings, 32 goals and 81 actions, coordinated by the Ministry of Trade. Türkiye became a party to the Paris Agreement on 7 October 2021 and announced its 2053 net-zero emissions target at COP28 on 1 December 2023.
The most concrete step is legislation: the country’s first climate regulation, Climate Law No. 7552, entered into force on 9 July 2025 (Official Gazette No. 32951). The law mandates the net-zero target and the establishment of an emissions trading system (ETS) — a critical step in preparing for CBAM. We cover these headings, alongside the finance and market drivers, on the Why the twin transition? page.
İkiz Eksen’s role on the green axis
İkiz Eksen treats the green axis not as a slogan but as an engineering discipline that is measured, managed and reported. This axis becomes concrete in the Sustain step of our methodology: we measure the carbon footprint (GHG Protocol, ISO 14064), make CBAM and CSRD/ESRS reporting producible through software, and continuously monitor compliance with ESG dashboards.
An important note on honesty: İkiz Eksen does not construct unproven environmental claims on a client’s behalf. We always explain benefits within the frame of sourced sector data and “what we can do”. You can see how the green transition runs together with the digital axis on the twin transition page, and our operating model on the methodology page.
Frequently asked questions
What is the green transition?
The green transition means moving economic activity to a climate-neutral, circular model by decoupling it from resource use and greenhouse-gas emissions. The European Union frames it as a growth strategy in the European Green Deal (COM/2019/640): climate neutrality by 2050 and decoupling growth from resource consumption.
When did CBAM take effect and whom does it affect?
For the EU Carbon Border Adjustment Mechanism (CBAM, Regulation (EU) 2023/956), the transitional period ran 1 October 2023 – 31 December 2025 as reporting only; the definitive period began on 1 January 2026. It covers six carbon-intensive sectors: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. It directly affects Turkish producers exporting these goods to the EU.
How do CSRD and ESRS affect companies?
The Corporate Sustainability Reporting Directive (CSRD, Directive (EU) 2022/2464) requires in-scope companies to report under the European Sustainability Reporting Standards (ESRS) on a double-materiality basis. Large in-scope EU companies, to produce their ESRS E1 (climate) data, also request Scope 1-2-3 data from suppliers — which indirectly captures Turkish suppliers.
What is ESG?
ESG is a three-dimensional assessment framework measuring a company’s Environmental, Social and Governance performance. Investors and large customers use these non-financial criteria as indicators of risk and sustainability. In the EU, ESG reporting became mandatory through the CSRD/ESRS; the environmental “E” dimension (climate, emissions, energy, water, circularity) maps directly onto İkiz Eksen’s green axis.
Where does Türkiye stand on the green transition?
Türkiye published its Green Deal Action Plan (Presidential Circular 2021/15) on 16 July 2021, announced its 2053 net-zero target at COP28 in December 2023, and enacted its first climate legislation, Climate Law No. 7552, on 9 July 2025. That law mandates the establishment of an emissions trading system (ETS).
Why should the green transition be handled together with digital?
Because carbon, energy and compliance data can only be measured and reported reliably through digital systems. CBAM requires embedded emissions on the digital registry every quarter, and CSRD requires auditable ESRS data. Proving green targets without digital infrastructure is hard — that intersection is precisely the twin transition.
How do I know if my product is in CBAM scope?
CBAM scope is limited to six sectors: cement, iron and steel, aluminium, fertilisers, electricity and hydrogen. Whether your product is in scope is determined by its customs tariff (CN) code; the definitive list is in the annexes of Regulation (EU) 2023/956 and on the EU’s official CBAM page. If you’re unsure, we start by mapping your product code to that annex.
When will I start paying for CBAM?
The transitional period (1 October 2023 – 31 December 2025) was reporting only, with no financial cost. In the definitive period that began on 1 January 2026, a financial obligation arises for embedded emissions. The CBAM certificate price is based on the EU ETS price and is set as a quarterly average in 2026, then weekly from 2027. Those who prepare early can calculate the cost in advance.
My customer asks me for carbon (emissions) data — what should I do?
This request usually comes from large EU customers under the CSRD/ESRS, who need your Scope 1-2-3 data for their own climate report. The answer is to calculate your carbon footprint with the GHG Protocol and ISO 14064 and present it in a verifiable form. Producing the data ready from a system spares you manual effort on every request.
What do Scope 1, 2 and 3 emissions mean?
The GHG Protocol splits corporate emissions into three scopes. Scope 1 is a company’s direct emissions (its own sites, vehicles, fuel burned); Scope 2 is the indirect emissions of purchased energy (electricity, heat, steam); Scope 3 is every other indirect emission across the value chain (supply chain, logistics, product use) — for most manufacturers the largest and hardest-to-measure share of the total. CBAM looks at a product’s embedded emissions, while the CSRD looks at all of Scope 1-2-3.
I’m a small exporter shipping small volumes — am I still subject to CBAM?
The 2025 “Omnibus” simplification introduced a de minimis exemption threshold for small importers; low volumes below it may fall outside scope. But because the threshold and scope have changed over time, the current value must be confirmed from official CBAM sources. Even with an exemption, your EU customers may still ask for emissions data.
Is there government support or financing for the green transition?
Yes. In Türkiye, the Ministry of Industry and Technology’s Green Transformation Support Programme (YDDP) backs manufacturers’ green investments. Internationally, EBRD’s GEFF programmes and World Bank-funded green-industry credit lines (via KOSGEB/TÜBİTAK) are available. These instruments require a measurable, reportable plan — which again makes digital data infrastructure necessary.
Looking for where to start your digital or green transformation?
Starting with İkiz Eksen is simple: we first measure where you stand and build your roadmap together. You begin with a single step, not a large programme.
