- Introduction
The Climate Act, adopted by the Grand National Assembly of Türkiye on July 2, 2025, and published in the Turkish Official Gazette dated July 9, 2025, No. 32951 ["Act"], aims to align Türkiye with its 2053 net zero emissions commitment by introducing comprehensive regulations across all economic sectors, including energy, transportation, industry, agriculture, and others. This text will examine the innovations introduced by the Act and the responsibilities it imposes on businesses and public authorities
2. Purpose of the Act
The Climate Act aims to reduce greenhouse gas emissions that lead to climate change and to prevent climate change itself. Another objective of the Act is to contribute to Türkiye's compliance with its international obligations. It was adopted to promote Türkiye's transition to a low-carbon economy and accelerate this process in light of the 2053 net-zero emission targets set forth by the Paris Agreement.
Furthermore, the Act aims to enhance social and economic benefits. It seeks to promote the use of renewable energy and reduce the carbon footprint, thereby ensuring the sustainability of the economy.
3. Key Provisions
Some of the key concepts introduced by the Climate Act include:
- Reduction of Greenhouse Gas Emissions
- Emissions Trading System
- Green Taxonomy and Green Sanctions
- Green Taxonomy and Green Investments
- Carbon Border Adjustment Mechanism
- Provincial Climate Change Coordination Boards
- Water Resource Management and Agricultural Practices
- Promotion of Clean Technologies
In line with the 2053 net-zero emission target, efforts to reduce greenhouse gas emissions across economic sectors will be accelerated. In addition, Türkiye will establish its first Emissions Trading System ["ETS"], through which greenhouse gas emissions of businesses operating in certain sectors will be regulated via a market-based mechanism. As of the date the Act enters into force [9 July 2025], businesses falling within the scope of the ETS will be required to obtain greenhouse gas emission permits within a three-year period.
Furthermore, a Turkish Green Taxonomy will be established to encourage an increase in green investments. In this way, it is aimed to boost investments in renewable energy.
Provincial governors will lead the establishment of Climate Change Coordination Boards in each province as part of a broader oversight mechanism. Local authority representatives will take part in these boards. By no later than 31 December 2027, Local Climate Change Action Plans will be prepared. The purpose of these plans is to ensure that efforts to combat climate change are carried out in cooperation with local governments.
4. Penalties for Non-Compliance with the Act
Non-compliance with the Act will result in administrative fines for businesses within its scope.
Pursuant to the Act, businesses that fail to submit their greenhouse gas emission reports in a timely manner will be subject to administrative fines ranging from TRY 500,000 to TRY 5,000,000. For businesses within the ETS system, these fines will be doubled in cases of non-compliance, resulting in penalties between TRY 1.000.000 and TRY 10.000.000. In addition, any business that fails to fulfil its ETS obligations will be fined an amount equal to twice the market price per allowance. However, the total amount of fines imposed under the Act may not exceed TRY 50.000.000.
5. Conclusion
Türkiye's newly enacted Climate Act provides a vital basis for protecting export competitiveness through full alignment with the European Green Deal and other global climate policies.
Supporting sustainable development goals, the Act includes comprehensive provisions such as emission reduction commitments, establishment of carbon markets, development of green financing instruments, and transition to sustainable business models. To ensure compliance with the Act, a robust administrative framework has been established, effective oversight mechanisms have been introduced, and close collaboration with the private sector has been encouraged.
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