The European Green Consensus (Carbon Footprint) is a set of policy initiatives by the European Commission aimed at making Europe climate neutral by 2050. An impact-assessed plan will also be presented to increase the EU’s target of reducing greenhouse gas emissions by 2030 to at least 50% and 55% compared to 1990 levels.
European Green Deal ; aims to increase the efficient use of resources by moving to a clean, circular economy and halting climate change, reversing biodiversity loss and reducing pollution
Within the framework of the European Green Agreement, tax mechanism regulation was also made and the Border Carbon Regulation (SKD) mechanism was announced as the EU regulation. The relevant regulation was established with the aim of targeting the imports of 5 energy-intensive sectors and for regulation and pricing to reduce the carbon emissions of these sectors.
These 5 energy-intensive sectors are as follows;
- Iron and Steel
The start date of the SKD covers a 3-year transition period starting from January 1, 2023. It is planned to be fully implemented as of January 1, 2026. During this transition period, the relevant sectors are required to submit an SKDM declaration. This declaration will cover the calculation of direct greenhouse gas emissions for products imported into the EU (Scope 1-2). Carbon costs are currently around €60 per tonne. In order to provide a cost advantage, the determined sectors should follow up and report the greenhouse gas amounts per product as soon as possible.
How to become a carbon neutral business by 2050?
Companies have an important role to play in presenting realistic and concrete plans for a zero carbon economy and disseminating innovative and robust solutions.
Unless your business transitions entirely to renewable energy, your carbon emissions are unlikely to be zero. Being “carbon neutral” means that you are balancing the equivalent amount of carbon dioxide in the atmosphere by other means to the carbon dioxide you release into the atmosphere from your business activities. Some companies have already started to proactively develop innovative strategies and use advanced technologies such as digitalization, machine learning, artificial intelligence to become a carbon neutral company. In summary, achieving carbon neutrality means that your business’s carbon emissions have a neutral impact on the environment.