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Is the Green Transformation in Europe an Opportunity or a Threat for the Turkish HVAC&R Sector?

05 June 2024
Is the Green Transformation in Europe an Opportunity or a Threat for the Turkish HVAC&R Sector?

Production processes, consumption habits, and global requirements have reached a point where the world's resources are insufficient. To mitigate the harmful impacts of climate change and reverse this trend, various action plans are being implemented. These include shifting from fossil fuels to renewable energy sources, optimizing energy and resource usage, and enacting legal regulations. The climate action movement, spurred by the United Nations' Sustainable Development Goals and the European Green Deal, is driving a global transformation. Mehmet Şanal, Chairman of the Air Conditioning Industry Exporters' Association (ISIB), highlights that the growing green transition, particularly in Europe, presents a significant opportunity for the Turkish HVAC&R sector if approached with the right strategies.

The Turkish HVAC&R sector can enhance its strategic position in European Union countries by focusing on sustainability.

The decline in water resources, the risk of drought in more parts of the world, the rise in greenhouse gas levels in the atmosphere from fossil fuel use, and the critical depletion of limited resources highlight the need for an ecological approach in the air conditioning industry, as in all sectors. Emphasizing this crucial issue, Mehmet Şanal, Chairman of the Turkish HVAC&R Exporters' Association (İSİB), mentioned that companies in the Turkish HVAC&R sector embracing eco-friendly practices and prioritizing sustainability efforts can enhance their strategic position in European Union countries by taking appropriate and swift actions.

It is necessary to transform the country's economy and industry with sustainable principles.

Mehmet Şanal mentioned that their sector produces sustainable products following ecodesign criteria and European Energy Efficiency Standards in alignment with the European Union's circular economy strategy. The focus is on reducing carbon emissions by using more environmentally friendly gases in cooling, improving device efficiency performances, and promoting high-efficiency products. There is a shift towards eco-friendly options like heat pumps in heating, moving away from natural gas-based heat generators. The sector is actively managing various climate and air-related activities with energy-efficient devices to promote sustainability. However, without comprehensive steps to align the national economy and industry with green principles, there is a risk of losing effectiveness in EU countries, a key trading partner. Failure to reduce carbon emissions in industry and energy may impact price competitiveness due to additional costs from the Border Carbon Regulation Mechanism starting in 2026.

“We continue our efforts to turn a possible crisis into an attractive opportunity”

Leading companies in the air conditioning sector are working diligently to ensure their products meet ecodesign criteria to maintain their position in the European market. Şanal emphasized the importance of embracing the green transformation swiftly to not only avert a potential crisis but also seize new opportunities. It is crucial for the sector to safeguard its current markets, particularly in EU countries, by swiftly responding to market demands and devising a strategic plan. The focus remains on enhancing awareness among companies, closely monitoring technological advancements, integrating clean and innovative technologies, and promoting a circular economy approach. Furthermore, efforts will be directed towards supporting the sector in initiatives such as increasing the utilization of renewable energy, opting for low-emission materials, addressing issues like carbon footprint and waste management, and advancing renewable energy projects. The forthcoming Air Conditioning Sector Sustainability Action Plan aims to motivate all sector companies to embrace sustainability and green practices. We aim for our action plan, which consists of 25 strategic goals across six action areas, to act as a roadmap for transforming a potential crisis into an opportunity.

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