White Goods Sector: Key Decision Announced

Important Decision for White Goods Sector During a meeting of the European Parliament Social Climate Fund, the Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (CBAM) proposals were adopted in new regulations with significant decisions, and Eskişehir's exports will be affected by this development.   Noting that the inclusion of organic chemicals, plastics and polymers in the Carbon Border Adjustment Mechanism will have serious impact on the white goods sector, which is strong in Eskişehir, Celalettin Kesikbaş, Chairman of Eskişehir Chamber of Industry (ESO), stated: "Approximately 30 percent of Turkey's plastic and plastic products exports in 2021 were directly to the EU region. This will lead to decreased competitiveness for our companies exporting plastic and plastic products that will be covered by CBAM, increased carbon taxes they will pay at the border, and consequently reduced profitability. Our manufacturers should begin preparations for this situation immediately and take swift action."

70 percent of production for export

Reminding that Eskişehir is home to domestic and foreign companies with high production capacity in refrigerators, washing machines, dishwashers and gas cooktops, Kesikbaş stated: "Turkey's largest white goods manufacturing companies are located in our city. Approximately 70 percent of refrigerators produced in our city are exported. The presence of large-scale white goods factories in Eskişehir has resulted in a dense concentration of white goods supplier industry companies in our city as well. The number of companies operating as white goods suppliers in Eskişehir is approximately 120, and these companies supply products to main industry companies in areas such as plastic injection, molding, chemicals, coatings, and metal forming."

Many changes ahead

Explaining that a series of topics came to the fore with the adoption of the Emissions Trading System and Carbon Border Adjustment Mechanism proposals, ESO Management Board Member and ESO Sustainable Green Industry Unit Director Ömer Benli, noted: "The EU took an important step toward its green industry targets and approved a package on this matter. Looking at the main topics highlighted in the new regulations, we see that a new system called ETS-2 will be established for buildings and road transport. The 61 percent emission reduction target proposed by the European Commission was raised to 63 percent. From 2024 onwards, all maritime transport within Europe will be covered by ETS. 50 percent of maritime transport outside Europe will be covered by ETS. The Carbon Border Adjustment Mechanism will be expanded to cover organic chemicals, plastics, hydrogen, ammonia and indirect emissions, and in this case, electricity consumption falling under Scope 2 will also be included in calculations."

Export volume must be protected

Cemil Dalkılıç, Eskişehir Chamber of Industry Sustainable Green Industry Specialist, stated: "The inclusion of organic chemicals, plastics, hydrogen and ammonia in CBAM scope is important for Turkey and Eskişehir, which have high export figures in plastic goods and products. It is essential that companies exporting to the EU closely monitor this issue to protect the EU market in our exports and that these companies prepare strongly for the established policies."