Border Carbon Tax (Border Carbon Tax or Border Carbon Adjustment) is a tax or adjustment mechanism that aims to take into account greenhouse gas emissions on a country's imports and exports. This type of tax or regulation is used when a country wishes to assess and remediate the environmental impacts of imports and exports in line with national sustainability and climate goals.

Start Date: The system will start with quarterly reporting on 01 October 2023. Transition Period: The period between 01 October 2023 and 01 January 2026 is called the transition period. Facilities are obliged to report every 3 months during this period for their products subject to SKDM.

During this period, greenhouse gas emission reports will not need to be verified and carbon tax will not be paid. Implementation Period: Facilities are obliged to calculate and verify their buried emissions between 01 January 2026 and 31 December 2026 and submit them to authorized declarants by 31 May 2027.

Starting from this period, facilities will be subject to carbon tax for the products they export subject to SKDM. A carbon tax or adjustment at the border has the following basic purpose: Preventing the Export of Greenhouse Gas Emissions: A country may have strict regulations in its domestic market to reduce greenhouse gas emissions, while other countries may have less stringent regulations.

This could undermine efforts to reduce emissions and shift production activities to lower-cost countries. Border carbon adjustments aim to prevent such “carbon evasion”. Border carbon taxes or adjustments are used to calculate the environmental impacts of import and export products and assess whether these products are compatible with the carbon market of the importing or exporting country.

As a result of these evaluations, an additional carbon tax may be imposed on products or adjustments may be made to the carbon emission permits of the importing or exporting country. This can contribute to the promotion of products that comply with the importing country's national sustainability goals and the adoption of low-carbon production processes.

A carbon tax or adjustment at the border has the following basic purpose: Preventing the Export of Greenhouse Gas Emissions: A country may have strict regulations in its domestic market to reduce greenhouse gas emissions, while other countries may have less stringent regulations. This could undermine efforts to reduce emissions and shift production activities to lower-cost countries.

Border carbon adjustments aim to prevent such “carbon evasion”. Border carbon taxes or adjustments are used to calculate the environmental impacts of import and export products and assess whether these products are compatible with the carbon market of the importing or exporting country.

As a result of these evaluations, an additional carbon tax may be imposed on products or adjustments may be made to the carbon emission permits of the importing or exporting country. This can contribute to the promotion of products that comply with the importing country's national sustainability goals and the adoption of low-carbon production processes.

Border carbon taxes or adjustments are considered as a way to strengthen efforts to combat climate change at the national level and contribute to emissions reductions on a global scale. However, the implementation of such mechanisms can be complex and impact international trade relations.

Therefore, international consensus and agreements on border carbon adjustments are important.

Sectors within the scope of SKDM

- Iron and Steel

- Cement

- Aluminum

- Fertilizer

- Electric