The European Green Deal (EGD) aims to make the European Union (EU) climate neutral by 2050, a goal that imposes costs on businesses adapting to decarbonisation. To prevent companies in non-EU countries with lower environmental standards from gaining a competitive advantage, mechanisms have been established to incentivise CO2 emission reductions that are in line with the EU’s green transition. These mechanisms also encourage emission reductions in Turkey, whose commitment to climate neutrality by 2053 – ratified through the Paris Agreement – further aligns with these goals.
What are the implications of the EGD for EU-Turkey relations? Is it more of a potential barrier to trade or instead an incentive for cooperation? Could linking adjustments to the EGD with the modernisation of the Customs Union (CU) – as proposed in a recent European Parliament report – be a catalyst for deeper cooperation between the EU and Turkey?