Garanti BBVA Develops Derivative Product for CBAM Certificates

Garanti BBVA said it has developed a new product for companies exporting goods covered by the European Union’s Carbon Border Adjustment Mechanism, or CBAM, to EU countries.

According to the bank, the derivative-based product allows companies to lock in the price of CBAM certificates, protecting them against expected price fluctuations.

The bank said one of the first transactions involving the product was carried out with the cement producer Medcem Cement and will cover the 2027 period.

Mehmet Ali Ceylan, chief executive of Medcem Cement Group, said the transition to the financial obligations imposed under CBAM should be considered not only in terms of regulatory compliance but also in relation to financial resilience and international competitiveness. The company regards uncertainty over carbon costs as one of the financial dimensions of its decarbonization strategy, he said.

Mr. Ceylan added that through the hedging transaction with Garanti BBVA, the company aims to make a portion of its CBAM-related costs more predictable.