Turkish Economy and the Green Transition Challenge
Ioannis N. Grigoriadis discusses with Dimitris Tsarouhas on the relationship between the EU and Turkey with regard to the green transition is of high importance; Some of the measures adopted by the European Union, and the Carbon Border Adjustment Mechanism (CBAM) in particular, constitute an important empirical case study to assess the adaptability of the Turkish economy to new challenges, and the compatibility of the EU and Turkish visions of the green transition more generally; As a major EU trade partner and a carbon-intensive economy, Turkey is expected to face rising costs because of the implementation of the mechanism; Turkey maintains a set of comparative advantages that can both minimize the impact of CBAM as well as prepare the country’s economy for a set of reforms that will make its economic model sustainable in the long run; Turkey will need to recalibrate relations with the EU and raise the salience of the issue in the domestic political sphere. For the time being, the prospects of doing so remain minimal.
