Green Transformation for SMEs: Sustainability, Circular Economy and the EU Green Deal
Objectives of the Training Program
The European Union aims to eliminate the net greenhouse gas emissions to zero, reduce industrial production and global greenhouse gases, as well as maintain the production and employment. In order to achieve this goal, the European Green Deal announced in 2019 envisages a ‘Green Transformation’ in many main and sub-sectors from agriculture to industry, energy to transportation. While the Union is taking steps towards its ‘climate neutrality’ objective, it also wants to introduce the Border Carbon Regulation mechanism to eliminate the negative effects of these steps on the economy. Through this mechanism, countries that do not have carbon pricing for their exports to the EU will be charged an extra amount of money. With the Border Carbon Regulation, the EU is trying to minimize the damage to the competitiveness of its companies that will suffer the cost disadvantage in order to protect the climate. In light of these developments, it is clear that Turkey, which makes almost half of its exports to the EU, will be directly affected by the ‘green transformation’ that the EU will implement. As long as Turkish companies do not develop permanent policies against the climate crisis, it is foreseen that they will face difficulties in accessing financing.
Turkey’s ratification of the Paris Climate Agreement and its inclusion in the ‘Green Deal’ process with the European Union (EU) has brought about discussions on “how the green transformation will take place” in the business world. While large conglomerates are already implementing green policies and announcing timetables for zero carbon emissions, small and medium-sized enterprises (SMEs), which make up 95 percent of the economy, are watching the developments with concern.
According to the climate law called the “Green Deal” approved by the European Parliament on June 24, 2021, EU countries aim to reduce their carbon emissions by 55 percent by 2030 and become carbon neutral by 2050. If the countries that have ratified the said law do not regulate the carbon emissions of the products and services which they sell to the European market according to the set standards, they will face an additional tax of between 30 and 50 euros per ton. This issue is also extremely important for Turkey, as more than 50 percent of its exports go to EU countries. If Turkey does not implement the investments that will ensure compliance with the Green Deal on time, it is estimated that exporting companies will face an annual tax burden of 4 billion dollars. While this concrete fact shows that Turkey cannot stay out of the green transformation process, it is not clear how companies will be able to obtain the necessary financing to meet the EU standards in carbon emissions.
It is extremely difficult for hundreds of thousands of SMEs, which make up more than 95 percent of Turkey’s economy, to access the financial resources necessary to produce in line with the Green Deal. For them, preparation in this area means an increase in costs that is difficult to bear. At this point, instead of providing SME-based support to meet the green transformation criteria, supporting industrial zones to create Green Deal conditions and to encourage the clustering of exporting SMEs in these zones will be a more economical and feasible solution. Turkey’s Green Deal Action Plan includes 32 targets and 81 actions, which are planned to be carried out under 9 headings, include carbon regulations at the border, green financing for a green and circular economy, a clean, economic and secure energy supply, sustainable agriculture, sustainable smart transportation, combating climate change as well as European Green Deal information and awareness raising activities.
In this green transformation process, there are plans to make Organized Industrial Zones an exemplary role model in the green transformation process and in this context, the Green OIZ Project, which is being carried out under the leadership of the Ministry of Industry and Technology, will be implemented rapidly and the ‘Green OIZ Certificate’ application will be launched. It is planned to make OIZs an exemplary role model in the green transformation process. It is necessary to focus on efforts to raise the awareness of OIZs and 67 thousand participating industrialists on issues such as climate change, reduction of carbon emissions, carbon trade, carbon tax, and the green transformation process. It is necessary to mobilize the industry for a clean and circular economy. This is because the economic structure that will change with the green transformation will eventually move beyond the EU framework and become a global practice. For this reason, Turkey needs to decarbonize its production structure and make its production processes circular.
Among the factors seen as a risk in the research conducted on SMEs is ‘Lack of information and awareness’. Accordingly, about 40 percent of firms need consultancy and 39 percent of them need information and advice on financing opportunities. However, one in every five firms stated that they had no idea about this issue. In this context, in the face of very rapid developments, BEDAM has decided to prepare this training program in order to meet the need for information and awareness raising on Sustainability and European Green Deal for SMEs and OIZs and to get prepared for the process in a healthier way.
BEDAM Corporate Sustainability Training
Green Transformation for SMEs: Sustainability, Circular Economy and the EU Green Deal
Duration of Training Program: Total 12 hours
Module 1: Prof. Dr. Nazmiye Erdoğan
- United Nations Sustainable Development Goals
- Sustainable Production and Service Approach and Sustainable Practices
- EU Green Deal, carbon border adjustment mechanism and Emissions Trading System
- Opportunities and Obligations for SMEs for Sustainability and Climate Change
- Green Transformation in Industry: Green Transformation Certificate and Green OIZ Applications
Module 2.: Prof. Dr. Yavuz Ercil
- Corporate Sustainability
- Sustainability Reporting
- Corporate Due Diligence Principle
- Carbon Footprint and Measurement in Supply Chain
Module 3. Sustainable Green Finance: Prof. Dr. Nermin Yeniköse
- Circular Economy and its Impact on SMEs
- Financial Problems of SMEs
- What is Sustainable Green Finance?
- Sources of Green Finance
- Green Transformation Support Programs