CBAM initially covers sectors such as iron and steel, aluminium, cement, fertilisers, electricity and hydrogen. Turkish companies exporting to the EU must accurately calculate and document the embedded emissions in their products, creating a need for reliable carbon accounting and verification.
Related terms
Carbon footprintThe total greenhouse gas emissions caused by an organisation, product or activity, expressed in carbon dioxide equivalent (tCO₂e).Scope 1, 2 and 3 emissionsThe classification of greenhouse gas emissions by source into direct emissions (Scope 1), indirect emissions from purchased energy (Scope 2) and other indirect emissions in the value chain (Scope 3).Climate-related risksThe potential effects on a company's financial position of physical risks arising from climate change and transition risks arising from the shift to a low-carbon economy.Double materialityAssessing sustainability matters both in terms of their effect on the company's financial position (financial materiality) and the company's impact on the environment and society (impact materiality).ESGShort for environmental, social and governance factors, used to assess companies' sustainability performance.Green financeInstruments such as green bonds, green loans and sustainability-linked loans used to finance projects with environmental benefits.
Last updated: October 22, 2026 · This definition is for general information only.