The Roadmap of the Green Transformation Ur-Ge Project in the Automotive Sector is Drawn

The Roadmap of the Green Transformation Ur-Ge Project in the Automotive Sector is Drawn
The Roadmap of the Green Transformation Ur-Ge Project in the Automotive Sector is Drawn
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Within the scope of the "Green Transformation in the Automotive Sector" Ur-Ge project, which was implemented by Uludağ Automotive Industry Exporters' Association (OIB) in order to raise awareness of its members, who export approximately 70 percent of their exports to the European Union, against the new regulations to be brought by the European Green Agreement and supported by the Ministry of Trade. Analysis kick off meeting was held.

OIB Chairman of the Board Baran Çelik emphasized that they have implemented the first Ur-Ge project in the sector on sustainability and reducing carbon emissions, and said, “As the Union, we take responsibility. Our project, which will take about three years, will cost approximately 5 million liras. As the Union, we cover 15 percent of this cost, that is, approximately 750 thousand liras. Our state also supports the project at a rate of 75 percent. Our companies participating in the project will receive professional consultancy services on compliance with the Green Agreement by paying only 10 percent of the cost.”

Uludağ Automotive Industry Exporters' Association (OIB) continues to guide its members operating in the automotive industry, which has been the leading sector of Turkish exports for 15 consecutive years.

OIB, which has implemented a new project in order to raise awareness of its members, who export approximately 70 percent of their exports to the European Union, against the new regulations to be brought by the European Green Deal, aims to address the negative effects of the Border Carbon Regulation, which will be implemented within the framework of the European Green Deal, with the "Green Transformation in the Automotive Sector" Ur-Ge project. aims to prevent.

The need analysis roadmap meeting of the "Green Transformation in the Automotive Sector" Ur-Ge project, which was supported by the Ministry of Commerce and which was the first in its sector, was held in the Union building.

Representatives of companies that will take part in the project attended the kick-off meeting chaired by UIB Project Implementation Branch Manager Sevcan Özkök.

Baran Çelik, Chairman of the Board of Directors of OİB, attended the meeting via video conference and made an opening speech.

Çelik stated that after the declaration of the EU Green Agreement, not only the companies producing in EU member countries, but also the producers of the countries with which the EU trades will have to fulfill the obligations of the Green Deal, with the introduction of the "Border Carbon Regulation Mechanism", approximately 70 percent of its exports will be reduced. As the Turkish automotive industry, which makes its first move to EU countries, we will face a new cost that we call "carbon tax". According to the New Climate Regime Report from the Lens of Economic Indicators, published by TÜSİAD in 2020, after the carbon emission price expected to be implemented as 50 euros per ton with the introduction of the Carbon at the Border Regulation, the total revenue loss of our automotive industry is predicted to be 233 million euros, which means that our total exports to the EU. It corresponds to about 1 percent,” he said.

75 PERCENT SUPPORT FROM THE MINISTRY OF COMMERCE

Pointing out that as carbon emission prices per ton increase, the loss of exports may increase, Chairman Çelik continued as follows:

“The aim of our project is; to do our part both to raise awareness of our exporters against liabilities and additional costs and to help them take the necessary precautions, and to leave a livable world legacy to future generations with the awareness of social responsibility. Our Association also took the responsibility for this project, which is the first Ur-Ge project in the sector on sustainability and reducing carbon emissions. Our project, which will last for three years, will cost approximately 5 million liras. As the Union, we cover 15 percent of this cost, that is, approximately 750 thousand liras. Our state also supports the project at a rate of 75 percent. Thus, our participating companies will receive professional consultancy services on compliance with the Green Deal by paying only 10 percent of the cost.”

After Çelik's speech, at the “needs analysis” roadmap meeting, which is the first activity of the Ur-Ge project, Deloitte Turkey Risk Consulting and Sustainability Services Director Murat Günaydın and Deloitte Turkey Risk Consulting and Sustainability Services Senior Manager Mine İzmir gave information to the participating companies.

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