ANKARA CHAMBER OF INDUSTRY PRESENTS THE CBAM SNAPSHOT OF ANKARA INDUSTRY
ANKARA’S SHARE IN CBAM-COVERED EXPORTS TO THE EU INCREASED, WHILE THE PRODUCT COMPOSITION OF INDUSTRY TRANSFORMED
ACI CHAIRMAN ARDIÇ: “WE MUST TURN THE GREEN TRANSFORMATION INTO AN OPPORTUNITY TO INCREASE OUR COMPETITIVENESS”
The Ankara Chamber of Industry (ACI) published its research report titled “Türkiye and Ankara Analysis within the Scope of the Carbon Border Adjustment Mechanism,” which examines the effects of the European Union’s Carbon Border Adjustment Mechanism (CBAM) on Türkiye and Ankara industry.
Prepared based on firm-level data, the report analyzed the production, export and financing structure of Türkiye and Ankara industry during the 2013-2023 period, and assessed the relative changes in firms’ export and investment indicators following the CBAM announcement through econometric analyses. The report, which shows that Ankara has strengthened its position in the European Union market, revealed that the city’s industry has shifted from a structure dominated by basic metals toward more advanced processed products.
The 2013-2023 period used in the report serves as a reference showing the structural conditions of industry before the CBAM transition period, which began on October 1, 2023. With CBAM moving into its full implementation phase as of January 1, 2026, creating financial obligations, the findings from this period will also enable the transformation in industry to be measured comparatively in the coming years.
ANKARA’S POSITION IN THE EU MARKET HAS STRENGTHENED
According to the report, Türkiye’s total exports increased from 161.5 billion dollars to 255.6 billion dollars in the 2013-2023 period, while exports of CBAM-covered products accounted for 7.75 percent of total exports in 2023. In Ankara, the share of CBAM-covered products in the city’s exports was approximately 7 percent.
Ankara’s share in Türkiye’s CBAM exports to the EU increased from 3.33 percent in 2013 to 4.44 percent in 2023. In the same period, Ankara’s CBAM exports to the EU rose from approximately 95 million dollars to 334 million dollars. This result showed that Ankara’s relative position in the EU market, which is of strategic importance in terms of CBAM, has strengthened.
A significant transformation also took place in the product composition of Ankara industry’s CBAM-covered exports to the EU. While the share of basic metal manufacturing declined from 72.63 percent to 25.83 percent, the share of fabricated metal products manufacturing increased from 12.01 percent to 33.83 percent, rising to first place. Machinery and equipment manufacturing also stood out with a share of 10.58 percent.
The report assessed this change as a strengthening tendency of Ankara industry to move away from a basic metal-dominated structure toward more advanced processed and higher value-added products.
ATTENTION DRAWN TO FINANCING AND INPUT COSTS
The report revealed both the strong aspects and vulnerable areas in the financial structure of firms exporting within the scope of CBAM in Ankara.
The profit ratio of CBAM-covered exporters in Ankara stood at 12.45 percent in 2023, above the Türkiye average of 10.06 percent. The debt ratio remained lower, at 18.07 percent. However, the share of bank loans in the financial liabilities of Ankara firms reached 86.35 percent, while this rate was calculated as 65.89 percent across Türkiye.
A striking picture also emerged on the cost side. In the general group of firms exporting CBAM-covered products, the ratio of input purchases to gross sales rose to 98.98 percent across Türkiye and to 128.05 percent in Ankara in 2023. The report noted that while evaluating this increase, firms’ behavior of increasing inventories and securing supply continuity against price fluctuations should also be taken into account, together with high input costs.
TRANSFORMATION COSTS ARE MORE CRITICAL FOR MEDIUM-SIZED FIRMS
The report identified medium-sized firms as one of the priority groups that need to be supported during the CBAM process. The share of medium-sized firms in Ankara within the total exports of medium-sized firms across Türkiye declined from approximately 4 percent to 3.45 percent during the period examined. It was determined that the share of bank loans in total liabilities exceeded 40 percent among these firms.
The report drew attention to the fact that the need for calculating and reporting emissions, investments in energy and production processes, and access to green finance may create an additional burden on firms with more limited technical and financial capacity. Therefore, the policy recommendations highlighted support mechanisms that take firm scale into account, long-term and low-cost financing instruments, and technical support to improve carbon accounting and Monitoring, Reporting and Verification (MRV) capacity.
FIRMS TURNED TO ALTERNATIVE MARKETS
The findings of the report showed that firms in Ankara with higher exposure to CBAM increased their CBAM-covered exports to non-EU markets more strongly compared to the Türkiye average, while maintaining their position in the EU market. This outlook indicated that Ankara firms also increased their exports to alternative markets during the period examined.
On the other hand, no statistically significant increase was identified in pricing behavior or in imported inputs classified as green products. The report assessed that with the beginning of the financial obligation period as of 2026, turning only to alternative markets will not be sufficient; low-carbon production, measurement and verification of emissions data, and investment capacity will become increasingly decisive.
PRIORITY: MEASUREMENT, FINANCING AND TRANSFORMATION CAPACITY
The report grouped policy recommendations for preparing Ankara industry for the CBAM process under the headings of strengthening the Monitoring, Reporting and Verification (MRV) infrastructure, creating scale-sensitive support packages for SMEs, expanding long-term and low-cost green financing mechanisms, integrating export supports with low-carbon production investments, and preparing a predictable transformation roadmap to support firms’ investment decisions. Supporting Ankara’s capacity in machinery and equipment manufacturing with high value-added and low-carbon production to strengthen its position in the EU market was also listed among the priority areas.
CHAIRMAN ARDIÇ: “WE MUST TURN THE GREEN TRANSFORMATION INTO AN OPPORTUNITY TO INCREASE OUR COMPETITIVENESS”
Evaluating the report, ACI Chairman of the Board Seyit Ardıç stated that a new era has begun in which carbon costs have become a direct element of international trade, and said, “It is important not only to preserve Ankara industry’s production power, but also to transform this power into a low-carbon, efficient and internationally competitive structure. We must turn the green transformation into an opportunity to increase the competitiveness of Ankara industry.”
Drawing attention to the importance of the change in Ankara industry’s product composition, Ardıç said:
“The data show that Ankara industry differentiates itself not only through its export volume, but also through the quality of its production. We consider it important that while the weight of basic metals is decreasing, more advanced processed products such as fabricated metals and machinery are coming to the forefront. In the coming period, we must support this production capability with energy and resource efficiency, low-carbon technologies and strong carbon management.
In the new competitive environment created by CBAM, it will not be enough for our firms merely to report their emissions. We need to increase energy and resource efficiency in production, reduce carbon intensity, strengthen access to finance, and make the transformation costs of our SMEs manageable. As the Ankara Chamber of Industry, we will continue to contribute to preparing our industrialists for this transformation, ensuring their access to the right financing and support mechanisms, and shaping public policies in line with the needs of our industry.”