The Ministry of Trade announced that the Ministry of Trade will support the consultancy service expenses of companies for their Green Deal Compliance Projects with the Decree Amending the Decree on Export Subsidies ("Decree") published in the Official Gazette dated February 23, 2024.

Green Deal 

The Green Deal is the economic transformation process announced by the European Union ("EU") on December 11, 2019, aiming to become a climate-neutral continent by 2050.

Within this scope, the "Fit for 55" package, which includes a review of the EU's climate, energy, land use, transport and taxation policies to achieve a 55% emission reduction compared to 1990 levels by 2030, was published by the European Commission on July 14, 2021. One of the most important elements of the package affecting international trade is the Carbon Border Adjustment Mechanism Regulation (CBAM), which will be implemented for the first time in the world. 

Green Deal Adaptation Project 

Green Deal Compliance Project, Article 1 of the Decree defines the project as a project for the needs analysis of companies for compliance with the European Green Deal.

Aim and Scope of Support

The Support aims to raise awarennes, analyze the current situation, determine a road map to improve the situation and facilitate the access of exporting companies to national and international funds in order to ensure their corporate sustainability-oriented transformation within the scope of the European Green Deal. In Turkey, the companies subject to support are commercial companies under Article 124 of the TCC.

The iron and steel, cement, aluminum, fertilizer, electricity and hydrogen, and textile and ready-to-wear sectors within the scope of the CBAM are expected to be the sectors that will be the fastest and most affected by the green transformation process. In this context, exports to the EU by the relevant sectors accounted for 34 percent of total exports to the EU in 2023. 

Implementation

Article 5 of the Decree introduces an important regulation on government support for consultancy services in Green Deal Compliance Projects. The Ministry of Trade will support the costs of consultancy services to be received by companies in line with the Green Deal Compliance Project Support at a rate of 50% for 5 years, up to a total of 10 million TRY. 

The support includes raising awareness on sustainability, providing legal advice on green transformation, conducting a baseline analysis, determining the roadmap for the adaptation process and facilitating access to national and international funds.