The Green Deal: The Impact of the Green Deal on Turkish Textile Companies

The Green Deal will likely have a significant impact on the Turkish textile industry, but it also presents opportunities for innovation, cost savings, and increased competitiveness.

Social Management
by Mehmet Cakmak

The Turkish textile industry is a major player in the European market, and the impact of the Green Deal on this sector could be significant.  The ready-to-wear and apparel industry realized exports of 21 billion 205 million dollars in January-December 2022, with an increase of 4.8 percent compared to the previous year. Looking at the country groups with the highest exports in the sector in 2022, EU countries took the first place, the Commonwealth of Independent States took the second place and other European countries took the third place. 

The carbon tax to be applied to exports to the EU in carbon emission reduction and the introduction of new standards for eco-labeling mean extra burden for those who cannot complete the harmonization process in this area. Accordingly, if improvement and harmonization studies are not carried out, Turkey may experience a market loss in exports. In addition, according to the Green Deal, the EU now requires candidate countries to “ratify and effectively implement” the Paris Agreement for trade agreements with other countries.

The deal aims to promote sustainable production and consumption practices, which could result in increased regulations and standards for the textile industry. This may lead to increased costs for Turkish textile companies, as they would need to invest in new technologies and processes to meet the new standards. This could result in increased costs for Turkish textile companies as they invest in new technologies and processes to meet the new standards

However, the Green Deal could also provide opportunities for Turkish textile companies to innovate and adopt more sustainable practices, potentially improving their competitiveness in the global market. For example, companies could focus on reducing waste and emissions, improving resource efficiency, and adopting circular economy principles. This would not only help the environment but also help companies save costs, improve their reputation, and increase their market share.

The Turkish textile industry could also benefit from the Green Deal by accessing new markets and customers who are looking for sustainable and eco-friendly products. By adopting sustainable practices, Turkish textile companies could differentiate themselves from their competitors and increase their competitiveness in the global market.

To adapt to the Green Deal, Turkish companies in the textile industry should consider the following initiatives:

  1. Efficient Use of Energy Companies should invest in energy-efficient technologies, such as renewable energy sources, to reduce their carbon footprint and reduce energy costs.
  2. Reduce Your Waste: Companies should focus on reducing waste throughout their production processes, from raw materials to finished products, to minimize their impact on the environment.
  3. Conserve Water Usage: Companies should implement water conservation measures, such as recycling and reusing water, to reduce water usage and minimize the risk of water scarcity.
  4. Use Sustainable Raw Materials: Companies should source sustainable raw materials, such as organic cotton or recycled fibers, to reduce the environmental impact of their production processes.
  5. Practice Circular Economy: Companies should adopt circular economy principles, such as closed-loop production systems, to minimize waste and maximize the use of resources.
  6. Get Environmental Certification: Companies can obtain environmental certifications, such as the Global Organic Textile Standard or the Global Recycled Standard, to demonstrate their commitment to sustainability and attract environmentally conscious consumers.
  7. Touch on Employee Training: Companies should invest in employee training to ensure that all staff are aware of the importance of sustainability and the role they can play in supporting it.
  8. Be responsive in preferring Supply Chain:  Companies should adopt responsible supply chain preference criteria set and audit their supplier in terms of their environmental and social performances. 

These initiatives will help Turkish companies to improve their environmental performance, reduce their costs, and increase their competitiveness in the global market. It is important for companies to take a proactive approach and embrace sustainability principles in order to succeed in the long term. 

In conclusion, the Green Deal will likely have a significant impact on the Turkish textile industry, but it also presents opportunities for innovation, cost savings, and increased competitiveness. Companies that are proactive in adapting to the Green Deal’s requirements and embracing sustainability principles will be better positioned to succeed in the future. 

As Corpera and Ace Consulting, we are providing our services to guide the textile companies for this transformation process that Turkish companies will have to enter eventually. For more information and to review our consultancy services, you can visit our website and contact us.