Energy
SHURA: Kalkınma ve karbonsuzlaşma için bütünlüklü sanayi politikası gerekiyor
SHURA Energy Transformation Center’s ‘Industrial Policy Alternatives for Turkey within the Scope of Fair Transformation’ report has been published.
In the report, in order to achieve economic development and decarbonization targets, a ‘New Inclusive Industrial Paradigm’ was proposed, which goes beyond sector-specific growth or just green/twin transformation-oriented policies and includes all industrial, transportation, finance and trade policies compatible with sustainable development. It was stated that in this way, while increasing Turkey’s competitiveness, a strong potential for fair transformation will be created.
Alkım Bağ Güllü, Director of SHURA Energy Conversion Center, emphasized that starting from industrial policy, trade, transportation and financing policies should be redesigned on the axis of green transformation. Güllü said, “Industry composition in Turkey should be shifted from sectors with high energy intensity but in low and medium-low categories in terms of technology, with low added value, to sectors with low energy intensity, but with medium-high or high technology and high added value. In addition to this structural transformation, one of the most critical elements of the industrial strategy is green transformation. “In this context, energy efficiency, electrification with renewable energy sources and the development and implementation of new clean technologies in areas where direct electrification is not possible should be an important part of the green industrial strategy,” he said.
Energy transformation is the priority of industry and development
According to the study, restraining the increase in energy consumption along with economic development plays an important role in Turkey’s achievement of its net zero carbon target, as well as the decarbonization of energy resources. It was emphasized that energy transformation should be given priority as the industrial sector has a critical role in development as well as a large share in energy consumption and carbon emissions. It was pointed out that for the necessary transformation in the industry, a comprehensive and integrated industrial policy with both structural and environmental sustainability dimensions, a planned approach and a radical paradigm change are needed.
The report states that the share of industry in Turkey’s primary energy consumption is approximately 35 percent, but when the energy consumed by activities such as transportation and storage of products is included, the estimated share resulting from industrial production reaches 50 percent. The share in question reveals the importance of the structure and development of energy demand, and therefore the design of industrial strategy, in the context of green transformation and net zero carbon target.
Industrial and energy transformation for a high value-added economy
The report emphasizes the need for an integrated industrial policy design that prioritizes specific sector strategies/policies within the framework of the transformation need of the manufacturing industry in Turkey, and projections on this subject are listed.
First of all, it is necessary to increase the share of sectors with high technology levels in manufacturing industry production, to improve the competitiveness of medium-high and high-technology sectors in trade policy priorities, and to strengthen their integration into international value chains. In the transformation of basic sectors such as chemistry and metal, policies and regulations should be developed to increase total added value.
On the other hand, in the manufacturing industry sub-sectors, the development of sub-sectors with high technology and/or added value should be supported and energy intensity should be reduced. It was recommended that the development of sustainable materials and the effective implementation of the circular economy, and the support of highly competitive product/product groups, taking into account explicit and implicit subsidies/costs in trade policy, should be included in the new industrial design.
Creating a supply-demand structure aimed at increasing total added value and benefits in the basic sectors, especially the manufacturing industry, and the economy in general, is also among the suggestions.
It was suggested that Turkey’s new industrial design should take into account the Green New Deal-oriented new growth paradigms of developed countries, which are important trade partners, especially the EU.
In addition, emphasis was placed on developing policies by considering the effects of the Border Carbon Regulation Mechanism, which requires short-medium term and faster action, on the manufacturing industry sectors within the scope of long-term transformation needs.
In the report, industrial policy strategy options for Turkey were listed as follows: New Inclusive Industrial Paradigm, Green Industrial Strategy, Twin Transformation Strategy and Growth-Oriented Industrial Strategy. Among these, the New Inclusive Industry Paradigm is the most integrated approach to achieve sustainable development and decarbonization.
