Turkey's cement industry requires US$30bn to meet net-zero targets

Representatives for the sector are highlighting that the Turkish cement industry will need at least US$30bn in investments to reach the ambitious goal of net-zero carbon by 2053.

According to Fatih Yücelik, the board chair of the Turkish Cement Manufacturers’ Association (TÜRKÇİMENTO), the industry will need to make a further investment of US$2bn. This additional investment is to ensure compliance with the requirements of the European Union’s Carbon Border Adjustment Mechanism (CBAM). This legislation, introduced in May 2023, imposes tariffs on carbon-intensive products, such as cement, steel and some forms of electricity generation. Mr Yücelik said: “The most important issue for us this year is carbon emissions.” However, he added: “Under the current situation, it is difficult for [them] to find this financing.”

In addition, Mr Yücelik reports that TÜRKÇİMENTO is beginning to establish waste heat recovery facilities to reduce the loss of energy. The energy produced by these units, according to Mr Yücelik, “can power 618,000 homes”, proving that the facilities could be a vital mechanism for offsetting the industry’s increasing energy costs.

Adil Sani Konukoğlu, TÜRKÇİMENTO, said: “A shipload of coal costs around TRY150m (US$4.68m). Energy accounts for around 80 per cent of our costs.” With production in the industry increasing 10.5 per cent to 81.5Mta between 2022-23, it is increasingly important that plants become more energy-efficient to remain profitable and comply with the CBAM legislature.