Turkey's Green Transformation Constitution: The First Climate Law and Its Innovations

The First Climate Law and its Innovations

Turkey has turned a critical corner towards achieving its 2053 Net Zero Emission target. Turkey's first Climate Law, which is on the agenda of the Turkish Grand National Assembly, offers a comprehensive roadmap that envisages radical changes in all areas of life, from industry to energy, from trade to local governments.

Aiming to take concrete steps beyond international commitments in the fight against climate change, which has become a global threat, Turkey is strengthening its legal infrastructure. The Climate Law, which aims to integrate environmental sustainability with economic growth, draws attention not only as an environmental regulation but also as a reform package that reshapes the country's development and trade strategies. The law includes a wide range of regulations from the "polluter pays" principle to green financing, from local action plans to heavy administrative fines.

1. Climate Change Presidency and New Governance Model

One of the most striking elements of the law is the increase in the powers of the Climate Change Presidency in order to carry out climate policies from a single source and in an effective manner. According to the new regulation, the Presidency will be the conductor of the green transformation process.

The main responsibilities of the Presidency include the following:

• Establishment of the Emissions Trading System (ETS): Operation of carbon pricing mechanisms.

• National Allocation Plans: Setting and monitoring sectoral emission limits.

• Green Taxonomy: Classifying whether investments are "green" or not and channeling financing accordingly.

This new governance model aims to strengthen inter-institutional coordination and accelerate integration with international carbon markets.

2. Emissions Trading System (ETS) and Economic Transformation

The Emissions Trading System (ETS) plays a vital role for Turkey to maintain its export competitiveness and align with the European Union's practices such as the Border Carbon Deregulation Mechanism (BCDRM). With the law, reducing greenhouse gas emissions is now a legal obligation.

What awaits the industrialists?

• Pilot Implementation: With the entry into force of the Law, a pilot ETS period will begin.

• Emission Permit Obligation: Businesses will be obliged to obtain emission permits within three years (+2 years if necessary).

• Market Operation: The technical infrastructure and market operation of the system will be carried out by Enerji Piyasaları İşletme A.Ş. (EPİAŞ).

The revenues from the ETS are planned to be transferred to green transformation projects and fair transition processes. This aims to ease the financial burden of the transition to a low-carbon economy.

3. Severe Criminal Sanctions and Local Action Plans

The Climate Law brings with it deterrent administrative fines to ensure compliance with the rules. A "zero tolerance" approach is adopted against activities that threaten environmental sustainability.

• Ozone Layer Violations: An administrative fine of 2.5 million TL will be imposed on those who illegally trade or produce ozone-depleting substances.

• Reporting Violations: Businesses that fail to report or under-report their greenhouse gas emissions in due time will be fined from 500 thousand TL to 5 million TL.

Local Green Mobilization: 2027 Target The Law makes not only the central government but also local governments responsible. Provincial Climate Change Coordination Boards will be established in each province under the chairmanship of the Governorate. Municipalities and relevant institutions will be obliged to prepare their own "Local Climate Change Action Plans" by December 31, 2027 at the latest. This step is seen as a critical threshold in terms of spreading the climate struggle to the grassroots.