Turkey: Turkey And Emission Reduction

Last Updated: 6 December 2011

Turkey has become a party to United Nations Framework Convention on Climate Change (UNFCC) on May 24 2004 and to Kyoto Protocol on August 26,2009. Turkey has not taken part in Annex B Countries List of the Protocol on the ground that it has not been the party to the Protocol in the time of signature and has not the responsibility of emission reduction or limitation in the first period (2008-2012) of the Protocol.1

Turkey ,on a regular basis, has the responsibility to organize the national declaration and greenhouse gas inventory pursuant to related COP decisions and articles 4 and 12 of the Covenant.Inventory is subject to review regularly pursuant to the COP decision numbered 19/CP.8.2

Ratio of the emission reduction in energy market in Turkey as follows: Public Electricity %37, Industry %21, Domestic Energy Usage %18, Transportation %17, Agriculture – Forestry – Fishery %5 and others %2. 3

Although Turkey will not take part in 2nd Period (2012-2016), it shall take part in 3rd period.

Turkey's primary objective within the scope of global combat against climate change is to participate in the global efforts that are carried out to prevent climate change, which is the common concern of humanity, and that are determined with common mind in cooperation with international parties in the light of objective and scientific findings, without compromising sustainable development efforts, based on the principle of common but differentiated responsibilities and within the framework of the special circumstances of our country.

In respect to this, Turkish Government is drafting Regulation related to computation of emission reduction and inventory holding as of 2012. This Regulation shall provide all enterprises to calculate their greenhouse gas inventory (carbon footprint) and submit these inventories to the public institution.

Emisson reduction will come with a lot of privileges. In other words, emisson reduction will have importance in the near future. What's the process of emission reduction?

Under Kyoto Protocol, carbon footprint is calculation of the greenhouse gas inventory of the enterprises due to their productions or consumption. As a consequence of the carbon footprint, enterprises shall adopt the procedures alike carbon management, carbon offseting and carbon trading.

On the other hand, emission reduction has paved the way for emission trading that is performed in Turkey which takes part in Voluntary Emission Market. In this context, analyzing sectoral carbon reduction potentials and making legal and institutional arrangements for establishment of the National Carbon Market and beginning infrastructure development for establishment of the National Emission Trading System are targets in this field.

Turkey faces with the problems how to inform enterprises about emisson reduction and how the emission reduction system will be implemented in Turkey in which Kyoto Protocol shall be executed in 2016-2020 period herein.

In addition to Emission reduction is an operation with the purpose of creating alternative energy sources depending upon the fossil fuel resources will be exhausted in 2050; it has constituted a new alternative financial mechanism already.

Adverse changes of global climate and the efforts to retrieve it, has required usage of renewable energy resources primarily. Renewable energy resources consist of hydro, solar, wind, geothermal and bio gas. Considering recent developments, it has been understood that World politics are canalized to the location where the renewable energy resources exist extremely. Attempt to exercise domination on energy resources and energy lines is considered as the underlying reason for the wars and rebellions .

Holding the sustainable and sufficient energy which can supply consumption and generation is the underlying cause for debates between developed countries today.

Organizing emission reduction Within the scope of UNFCC and Kyoto Protocol highlights some important points in practice.

The countries which are party to Kyoto and Annex List, primarily guarantee that they will implement emission reduction by the enterprises. Enterprises try to practice emission reduction by tending towards renewable energy resources or arrangements in corporates or rehabilitation works on new technologies.

The countries which fail on performing legal obligations under Kyoto Protocol, shall be fined for surplus greenhouse under Kyoto. These fines shall be used as funds or Carbon Credits for the countries which aim emission reduction by investing on renewable energy or rehabilitation of the enterprises and restriction of production.

The countries which intend to actualize emission reduction shall benefit from the funds or carbon credits, while the countries fail on emission reduction provides paying penalty.

In case Implementation Unit of the United Nations Framework Convention on Climate Change settles that country in the list of Annex 1 has not corresponded to emission target, then that country shall have to reduce the emission in the ratio of %30 as well as the over emission Under Kyoto Protocol and UNFCC.

For instance; considering the country of which emission target is %10 and real emission is %12,

-that country shall reduce emission which is exceeded on the ratio of %2 in addition to corresponding %30 of %10 which is approximately %3. Thus, the country shall have to reduce emission on the ratio of %5 on the basis of its real emission rate %12. This will result in restriction of supply and consumption and create serious problems in macro economics of that countries. Moreover, the country to be fined shall be able to impose sanctions to the enterprises which exceed the limits of emission.

There are advantages and disadvantages of emission reduction as follows:

  • Member states will be able to impose obligation with respect to buy their carbon certificates to the non member states which intend to export in these countries;
  • Carbon Tax will be able to collected regarding these imports and exports;
  • Certification of carbon may be subject to the convenience in import or export besides quota;
  • Certification/non certification of carbon may result in convenience / difficulties in mergers and acquisitions, foreign trade or credit facilities;
  • And clean energy products will be preferred in trading.

Moreover, emission reduction has created a new finance market. Carbon exchange has been founded in London by Germany, Italy, France, Spain, Japan and Canada.

Through this exchange market, carbon certificates are bought by the firms which have excess emission. Total trading volume of emission trading in 2012 is estimated approximately 480 billion $.

Market price for a tonne of carbon traded in Turkey is approximately 5,5 Euro due to Turkey is not in Annex 1 List. In the second period of Kyoto Protocol, which Turkey shall take part in mandatory carbon market, the market price shall increase to 12-15 Euro for a tonne of carbon. This is one of the main differences between voluntary carbon markets and mandatory carbon markets which Kyoto set forth.

This financial instrument creates side income to the firms which invest in renewable energy resources, furthermore it is an important investment fund.

Turkish Government has integrated the emission trading to its energy strategies until 2023. The increase in demand has given rise to the long-term investments made by the private sector .The Turkish government encourages investors to implement renewable energy projects in Turkey with new incentives on renewable energy. This ensures that the government's feed-in tariff will accelerate investment projects in the coming years. Emission trading volume is estimated approximately 15 billion USD in Turkey in parallel with its renewable energy resources.

In addition to national resources, EU and GEF funds are also available among many others that are based on international and bilateral agreements. Funds that are allocated by the World Bank, European Bank of Reconstruction and Development, French Development Agency, German Bank of Development, Trade and Investment Agency of the UK, Japan Bank of International Cooperation are worth mentioning. Within the scope of multilateral Climate Investment Funds, Turkey receives a considerable amount of finance from the Clean Technology Fund, which is an important achievement in terms of funding of policies for combating climate change and climate change adaptation and attracting foreign investors to invest in Turkey.4

Turkish firms and foreign investors who intend to benefit from emission trading volume of Turkey, shall get the best of due to Turkey's policies and strategies in renewable energy resources , construction and industry in the coming years.

Footnotes

1. Climate Change Department in the Ministry of Environment and Foresty, 3rd Energy ongress, March 2011, Page 1.

2. Climate Change Department in the Ministry of Environment and Foresty, 3rd Energy Congress, March 2011, Page 2.

3. Climate Change Department in the Ministry of Environment and Foresty, 3rd Energy Congress, March 2011, Page 9.

4. National Climate Change Action Plan, Ministry of Environment and Urbanization, July 2011, Ankara, page 65.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Ozogul Yenigun & Partners
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Ozogul Yenigun & Partners
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions