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.


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.

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