• Garanti BBVA has introduced a derivatives-based treasury solution to help EU exporters manage volatility in future CBAM certificate costs.
• Medcem Cement Group completed an early transaction in Türkiye, using EU Allowance pricing to improve visibility over part of its future carbon liabilities.
• The deal brings climate regulation into corporate treasury planning, linking compliance exposure with pricing, profitability and financial resilience.

Garanti BBVA has launched a treasury solution that allows companies exporting to the European Union to manage carbon price risk linked to the Carbon Border Adjustment Mechanism.

The derivatives-based product is designed to reduce uncertainty around future CBAM certificate costs. Those costs will be influenced by movements in the European Union Emissions Trading System, creating a new financial exposure for companies selling carbon-intensive goods into the bloc.

Garanti BBVA structured and executed an initial transaction with Medcem Cement Group. The cement producer locked in the average price of EU Allowances over a defined reference period. This gave the company greater visibility over part of its future CBAM-related costs.

The transaction is among the early applications of this type in Türkiye. It also extends carbon risk management beyond compliance teams and into corporate treasury functions.

Carbon regulation becomes a treasury risk

The EU’s CBAM applies a carbon cost to certain imported goods based on their embedded emissions. Sectors covered include cement, steel, aluminium, fertilisers, hydrogen and electricity.

For exporters, changes in the price of CBAM certificates could affect production costs, margins and commercial pricing. Companies may also face difficulty forecasting the cost of future exports when carbon prices remain volatile.

Garanti BBVA’s solution allows eligible clients to manage part of that exposure through derivatives linked to EU Allowance prices. The structure can provide greater cost certainty before the relevant CBAM certificates must be purchased.

Sinem Edige, Executive Vice President of Garanti BBVA, said: “Today, sustainability has become a key driver transforming not only companies’ environmental impact, but also their financial strategies and risk management approaches. Climate regulations such as the European Union’s Carbon Border Adjustment Mechanism are making the predictable management of carbon costs increasingly critical for companies trading with the EU.

At Garanti BBVA, we support our clients in managing the financial risks associated to a lower-carbon economy and with compliance with CBAM requirements. By combining our expertise in sustainable finance with treasury products and risk management solutions, we help our clients prepare for a new generation of financial risks.

The cost of CBAM certificates is subject to changes driven by developments in EU carbon prices. As a result, companies planning exports, pricing products or projecting costs today cannot accurately predict the carbon costs they may face in the future. Through this transaction with Medcem Madencilik—one of the early applications of its kind in Türkiye—we aim to help our client manage this uncertainty and reduce their exposure to EU carbon prices.

Looking ahead, we will continue developing innovative solutions that help our clients integrate climate-related financial risks into treasury planning.”

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Cement exporters face competitiveness pressure

Cement producers are among the companies most exposed to CBAM because of the sector’s emissions intensity and its role in international trade.

Medcem Cement Group CEO Mehmet Ali Ceylan said: “With the transition of the Carbon Border Adjustment Mechanism (CBAM) into its financial obligation phase, closely monitoring carbon costs and improving their predictability is becoming increasingly important, particularly for industries exporting CBAM-covered products to the European Union. We believe that, for the cement sector, this process should be addressed not only from a regulatory compliance perspective but also in terms of financial resilience and international competitiveness.

At Medcem Cement Group, we consider uncertainty around carbon costs as one of the financial dimensions of our decarbonization strategy. In this context, we worked in close consultation with the Garanti BBVA team and through the hedge transaction we executed, we aimed to make a certain portion of our CBAM-related costs more predictable.”

The transaction illustrates how CBAM may change financial decision-making across export-oriented industries. Carbon exposure can now influence pricing models, procurement decisions, capital allocation and customer negotiations.

Banks expand climate risk products

Banks have traditionally helped companies hedge foreign exchange, interest rate and commodity risks. Climate policy is adding another category of exposure.

For corporate leaders, the immediate issue is not only the cost of compliance. It is also the impact of carbon volatility on earnings, contracts and long-term competitiveness.

Garanti BBVA’s transaction shows how sustainable finance and treasury products can converge. Similar structures could become more relevant as companies assess their CBAM liabilities and seek greater certainty over future carbon costs.

For exporters across Türkiye and other EU trading partners, the financial phase of CBAM will test both emissions performance and balance-sheet resilience. Companies that integrate carbon exposure into treasury planning may be better positioned to protect margins while financing their transition to lower-carbon production.