A manufacturer today carries two pressures at once. On one side, carbon compliance reporting for exports to the EU (CBAM, CSRD); on the other, the cost, delivery and competitiveness pressure that forces digitalization. Most firms run these as two separate budgets, two separate teams, two separate projects. The most expensive mistake we see in the field starts right here: one system for energy metering, another for production tracking, a third spreadsheet for the carbon report.
Industry 5.0 proposes the opposite. Green and digital transformation feed off the same data; running them apart doubles both the cost and the time.
What is Industry 5.0, and how does it differ from Industry 4.0?
Industry 4.0 aimed to raise efficiency through automation, sensors and data. According to the European Commission’s definition, Industry 5.0 takes this a step further: efficiency stops being the sole goal, and three dimensions move to the centre of production.
- Sustainability: Circular production models, more efficient use of resources, and reduced climate impact.
- Human-centricity: Worker wellbeing and evolving skill needs placed at the heart of the production process.
- Resilience: Strengthening supply chains and energy practices against external shocks (pandemics, energy crises, supply disruptions).
The Commission frames this around “running the green and digital transitions together.” In other words, Industry 5.0 positions digitalization not as a goal in itself but as the means to sustainable, resilient production.
Twin transition: why green and digital run together
Twin transition is the practice of carrying green and digital transformation within a single framework. The relationship runs in one clear direction: digital is the measurement engine for green.
Consider this: to calculate a carbon footprint you need energy and production data. That data already comes from digitalization — machine data collection, smart metering, ERP records. Once a manufacturer collects this data, the same data can serve both operational efficiency and carbon reporting. There’s no need to collect the data twice or build two separate systems.
Every step taken on the digital side — sensors, automation, analytics — also lays the groundwork for the green side. Treating them as disconnected projects means missing this natural overlap.
What it means in practice: the same data does several jobs
On the manufacturer’s side, the concrete meaning of twin transition is one data source working for several decisions:
- Machine and meter data becomes real-time energy monitoring; waste becomes visible. Measurement-driven optimization brings energy costs down — the savings rate varies by site and process, and no fixed percentage is promised.
- The same energy data is the input for Scope 1 and Scope 2 emissions calculations, so CBAM and CSRD reporting no longer needs a separate data-collection effort.
- Production data drives planning, equipment effectiveness (OEE) and delivery tracking, while also revealing energy intensity per unit produced.
- Waste and raw-material data is tracked for both cost control and circular production targets.
The logic is simple: what isn’t measured can’t be managed, and what’s measured twice costs twice. Twin transition consolidates measurement into one point.
Türkiye in 2026: twin transition support
Twin transition is no longer just a concept; it has become an official funding heading. Development agencies have opened “twin transition” technical support programs for 2026. For example, the Central Black Sea Development Agency’s 2026 Export-Focused Twin Transition Technical Support Program funds training, consultancy and program/project preparation services. Its priorities include raising regional firms’ export capacity, strengthening high-value manufacturing and R&D infrastructure, and lifting manufacturing competitiveness through green and digital transformation. Applications are taken through the KAYS system in periods across 2026.
This program is regional; each development agency has its own call schedule and conditions. There are also twin transition training and consultancy projects run by agencies such as İSTKA and by municipalities. We covered KOSGEB’s digital and green transformation support earlier in our SME support guide. Because amounts, thresholds and deadlines change over time, confirm current conditions with your regional development agency or your advisor.
The support types most commonly encountered in the field:
| Support type | Typical scope | Source |
|---|---|---|
| Technical support (development agency) | Training, consultancy, project preparation | Regional development agency |
| SME digital/green transformation | Maturity assessment, investment | KOSGEB |
| Training and capacity building | Twin transition training | Agency/municipality projects |
Where to begin
Twin transition advances through measurable steps, not a single leap. In practice the order is: first measure (make existing energy and production data visible), then transform (move the data into a system that makes decisions), then sustain (tie compliance reporting and continuous improvement into a loop).
İkiz Eksen builds this chain with a single team: from measurement to software, from software to compliance reporting. The software experience comes from Qera — more than 550 customers across over 15 sectors, over 100 ERP deployments, and a team of around 35 specialists. The infrastructure runs on Microsoft Azure; projects are delivered turnkey, with service across Türkiye.
Deciding where to start takes a single conversation that assesses your organization’s profile. You can review our solutions or request an assessment directly through the contact form.
Frequently Asked Questions
Is Industry 5.0 replacing Industry 4.0?
No, it complements it. Industry 4.0’s automation and data infrastructure remain the foundation; Industry 5.0 adds the dimensions of sustainability, human-centricity and resilience on top. A firm that has invested in 4.0 does not start from scratch when moving to 5.0.
Is twin transition only for large factories?
No. It’s actually easier to start at SME scale, because a single line or facility can be chosen as a pilot and the measure-data-report chain built in small steps. What matters is setting a scope that fits your scale.
Can’t I just do green and digital transformation separately?
You can, but it costs more. The energy data you collect for carbon reporting, set up correctly, also feeds efficiency decisions. Running the two processes apart leads to collecting the same data twice and operating two separate systems.
Is there government support for twin transition?
Yes. Development agencies’ 2026 technical support programs, KOSGEB’s digital and green transformation support, and various agency/municipality training projects are available. Since conditions vary by region and period, check the current call from the agency you fall under.
Where should we start?
By seeing how much of your existing energy and production data can be tracked digitally. If the data isn’t visible, the first step is measurement; if it exists, the step is moving it into a system that makes decisions. To outline a starting framework for your profile, you can request an assessment conversation.
Sources:
- European Commission — Industry 5.0 (Research and innovation): research-and-innovation.ec.europa.eu
- Central Black Sea Development Agency — 2026 Export-Focused Twin Transition Technical Support Program: oka.gov.tr
- KOSGEB — Digital and green transformation support: kosgeb.gov.tr
Related pages: Twin transition · Digital transition · Green transition · Solutions · Services