I. INTRODUCTION
Climate change remains a significant global threat, exacerbated by intensive use of fossil fuels and rapid industrialization processes. Extreme weather events, depletion of water resources, and the destruction of natural habitats—driven by increasing greenhouse gas emissions—profoundly impact both economies and societal structures. In this regard, international regulatory frameworks, ranging from the European Union's Green Deal to the Paris Convention, are compelling countries and corporations transitioning toward lower-carbon production models.
Türkiye, due to its geographical position, is among the countries directly exposed to adverse effects of climate change. In addition to ongoing efforts aligned with the net-zero emissions target set for 2053, the Climate Law Proposal (the "Proposal"), submitted to the Presidency of the Grand National Assembly of Türkiye on 20/02/2025, aims to facilitate a comprehensive transformation in harmony with international obligations. The Proposal seeks to establish a legal framework encompassing a broad spectrum of issues, including introduction of an emissions trading system, development of green finance models, integration of climate plans into local governance, and promotion of clean technology investments.
Within this framework, roles and responsibilities of all stakeholders, from public authorities to the private sector, from local administrations to individuals, will be defined, ensuring implementation of carbon markets, support of sustainable production methods, and expansion of clean technologies. Through this approach, the necessary legal infrastructure will be established with due consideration for principles of climate justice and just transition, thereby enabling Türkiye to take a crucial step toward a more resilient and sustainable future in the face of climate change risks.
II. FUNDAMENTAL PRINCIPLES
1. How will the Directorate of Climate Change (the "Directorate") obtain necessary information, documents, and data for implementation of the Proposal?
Without prejudice to provisions of Law No. 6609 on the Protection of Personal Data, the Directorate shall have the authority to directly request necessary information, documents, and data from public institutions, organizations, and legal entities. Upon receipt of such requests from the Directorate, relevant parties are required to provide the requested information, documents, and data promptly, free of charge, and within the prescribed timeframe.
For obtaining information, documents, and data, the Directorate shall primarily utilize the National Geospatial Information Platform. Any information, documents, or data not accessible via this platform shall be acquired through protocols established with relevant public institutions and organizations.
2. What activities are foreseen by the Proposal for the reducing greenhouse gas emissions?
The Proposal aims to implement greenhouse gas emission reduction measures in an integrated manner, in line with the net-zero emissions target, under the coordination of the Directorate. This implementation is to be carried out in collaboration with relevant public institutions and organizations, taking into account international agreements and standards. The process is structured around the "Nationally Determined Contribution" (the "Nationally Determined Contribution"), which is periodically prepared and submitted to the Secretariat of the United Nations Framework Convention on Climate Change and includes both greenhouse gas reduction and climate adaptation targets. In this regard, relevant public institutions and organizations are obliged to prepare, update, and implement their respective action plans based on the designated policies and strategies.
To achieve emission reduction, a range of measures is proposed, including increasing energy, water, and raw material efficiency; preventing pollution at its source; expanding renewable energy usage; reducing carbon footprints; promoting alternative fuels and clean technologies; and adopting the zero-waste approach. Additionally, the protection and enhancement of carbon sinks—such as forests, agricultural lands, pastures, and wetlands—are emphasized, integrating carbon offset mechanisms with an ecosystem-based approach beyond technical solutions. Thus, within the framework of the just transition principle, economic and social impacts will be managed in a balanced manner, while ensuring the preservation of ecosystem integrity to support long-term climate objectives.
Obligations related to the preparation and adaptation of greenhouse gas reduction measures must be fulfilled by relevant institutions and organizations no later than 31/12/2027. The President is authorized to extend this deadline by up to 1 (one) year.
3. How does the Proposal regulate "climate change adaptation"?
Climate change adaptation activities are carried out in alignment with the Global Adaptation Goal set under the Paris Convention, to which Türkiye is a party, as well as in accordance with the Nationally Determined Contribution, the 2053 Net-Zero Emissions Target, and the strategy and action plans prepared under coordination of the Directorate. Within this framework, relevant public institutions and organizations shall undertake activities within their respective areas of responsibility to mitigate risks posed by climate change, prevent existing or anticipated damage, and capitalize on potential opportunities. They shall also regularly update their sectoral policies in response to evolving climate conditions.
Effective water resource management emerges as a key component of adaptation measures. Management plans developed by institutions shall be implemented to lessen impacts of floods, droughts, and water scarcity, alongside necessary infrastructure and governance measures. Furthermore, to ensure sustainable management of ecosystems, the proportion of terrestrial and marine protected areas shall be increased, and measures shall be adopted to safeguard biodiversity. Reforestation efforts and nature-based solutions shall be employed to combat desertification and erosion, thereby creating climate-resilient natural buffer zones.
In the agricultural sector, an ecosystem-based adaptation approach shall be adopted to support sustainable production and food security. This approach maintains a balance between conservation and utilization of natural resources, involves water budget planning, and promotes nature-based practices. Additionally, under integrated disaster management, early warning and monitoring systems shall be developed to minimize damage caused by climate-related disasters, thereby enhancing the adaptation capacity of both society and institutions.
Obligations related to preparation and adaptation of climate change adaptation measures shall be fulfilled by relevant institutions and organizations no later than 31/12/2027, with the President authorized to extend this deadline by up to 1 (one) year.
4. What Planning Tools Will Be Used for Greenhouse Gas Emission Reduction and Climate Change Adaptation Activities?
Within the scope of the proposal, planning tools have been identified at the national and local levels for the implementation of greenhouse gas emission reduction and climate change adaptation activities. In this context, climate change strategies and action plans prepared at the national level under the coordination of the Directorate, with the participation of relevant institutions and organizations, will be regularly updated and implemented in alignment with net zero emission targets. Throughout this process, sectoral vulnerability and risk analyses, along with climate models, will be utilized to reduce future uncertainties and establish a robust data infrastructure for investments.
At the local level, Provincial Climate Change Coordination Boards play a prominent role. These boards, established under the coordination of governors and with the participation of relevant public institutions and local government representatives, coordinate the preparation, implementation, and monitoring of local climate change action plans tailored to the characteristics of each province. In metropolitan municipalities, these plans are prepared by the metropolitan municipality, while in other provinces, they are jointly prepared by the provincial municipality and the special provincial administration. The plans are then submitted to the boards for decision-making, ensuring that concrete steps addressing local needs and risks are effectively and holistically implemented.
Local climate change action plans will be prepared no later than 31/12/2027, and the Ministry of Environment, Urbanization, and Climate Change (the "Ministry") is authorized to extend this deadline by up to 1 (one) year.
5. What Are the Principles Regarding Finance, Technology, and Capacity-Building Tools Related to the Implementation within the Scope of the Proposal?
The Proposal sets forth three fundamental implementation tools for climate change mitigation activities: finance, technology, and capacity-building. In terms of financial instruments, the primary objectives include developing climate finance, expanding green and sustainable capital market instruments, and promoting bank financing.
In this context, the Directorate is responsible for establishing and managing Türkiye's Green Taxonomy to bolster green investments. Additionally, in line with circular economy and zero-waste targets, support mechanisms will be developed for recovery and reuse initiatives. To address embedded carbon emissions of goods imported into Türkiye's Customs Territory, a Carbon Border Adjustment Mechanism may be established, overseen by the Ministry of Trade in collaboration with the Directorate.
Regarding technological implementation tools, the main goal is developing and disseminating clean technologies. The Directorate will coordinate the creation of new climate-related technologies, such as carbon capture and storage and hydrogen technology, through cooperation with relevant institutions. Moreover, research and application centers, along with institutes under the Directorate's auspices, are anticipated to support technological progress.
Within the capacity-building framework, educational and awareness-raising activities will be undertaken to enhance public awareness of climate change. In this regard, the Ministry of National Education and the Council of Higher Education will update pertinent curricula and educational programs to advance a green workforce. The procedures and principles governing these measures will be determined by relevant public institutions and organizations in consultation with the Ministry.
6. How Is the Emissions Trading System (the "ETS") Regulated, and What Obligations Does It Impose on Businesses?
The ETS is a market-based mechanism designed to ensure cost-effective reduction of greenhouse gas emissions, in line with Türkiye's 2053 Net-Zero Emissions Target. Under this mechanism, businesses engaging in activities that generate greenhouse gas emissions must obtain a greenhouse gas emission permit from the Directorate to continue operations. Emission allowances allocated to businesses on the basis of emission caps may be traded in the market, providing economic flexibility. Free allocation of allowances is also implemented to prevent carbon leakage, which occurs when industries shift investments to jurisdictions without carbon pricing mechanisms due to heightened carbon costs.
Accurate and reliable measurement of greenhouse gas emissions is critical to effective functioning of the ETS. Accordingly, businesses must submit verified annual greenhouse gas emission reports to the Directorate and surrender corresponding allowances at the end of each compliance period. Failure to comply shall result in sanctions. Moreover, the free allocation mechanism aims to ease the financial burden on businesses by reducing carbon pricing costs under specified conditions. Allocated allowances are tradable, and transactions within the ETS shall not be subject to the Public Procurement Law No. 2886, ensuring stability and preventing undue costs. If you would like more detailed information about the ETS, you can access our in-depth article on the subject through this link.
7. What Incentives Will Be Implemented for Green Transformation and Climate Change Mitigation?
Türkiye's green transformation will be further advanced through incentives directed toward investments with high potential for reducing greenhouse gas emissions and adapting to climate change. In this context, financial incentive mechanisms and support schemes shall be developed, particularly for public institutions and legal entities operating in priority sectors within the ETS framework. Furthermore, green capital market instruments, grants, guarantee provisions, and financial cost support will be provided to facilitate investment financing and reduce borrowing costs. The procedures and principles governing implementation of these incentives shall be determined by the Ministry, in consultation with the Ministry of Treasury and Finance, the Strategy and Budget Presidency, and other relevant public institutions.
8. What Sanctions Apply for Non-Compliance with the Provisions of the Proposal?
Administrative sanctions under the Proposal serve as a deterrent measure to ensure effective enforcement of obligations and achievement of greenhouse gas emission reduction targets. Accordingly, administrative fines shall be imposed for failure to comply with monitoring, reporting, and verification requirements related to greenhouse gas emissions, for violations of regulations governing ozone-depleting substances, and for breaches of obligations concerning fluorinated greenhouse gases.
With regard to the ETS, sanctions shall apply in circumstances such as operating without a greenhouse gas emission permit, exceeding emissions permitted under allocated allowances, and failing to meet allowance surrender obligations. Moreover, specific penalties shall be enforced for irregularities in carbon credit generation and offsetting transactions. The Directorate and the Ministry shall be responsible for identifying violations and imposing sanctions. While administrative judicial remedies are available against sanction decisions, filing a lawsuit shall not suspend the collection of imposed penalties.
9. What Regulations Does the Proposal Introduce to Address Market-Disruptive Behaviors in Markets and Bilateral Agreements?
Amendments to Electricity Market Law No. 6446 introduce sanctions against manipulative and market-disruptive activities in markets, including the ETS market. Where such activities or attempts are detected, administrative fines shall be imposed on natural and legal persons according to the severity of the violation. Additionally, penalties must be set at a level not less than twice the benefit gained, or the damage caused. To ensure efficient and fair market operation, regulatory authorities may adopt any necessary measures, including partial or complete suspension of market participation rights, either temporarily or permanently. The procedures for determining administrative fines and defining market-disruptive behaviors shall be established by the Energy Market Regulatory Authority, in consultation with the Capital Markets Board.
10. What Are the Transitional Provisions Implemented by the Proposal?
As a result of transitional provisions stipulated in the Proposal:
- A pilot implementation period is envisioned prior to full-scale rollout of the ETS. The Carbon Market Board, considering inputs from relevant institutions and civil society organizations, shall determine the scope, duration, and procedural principles of this pilot period. During this phase, administrative fines imposed for non-compliance with obligations shall be subject to an 80% reduction.
- A three-year transition period is introduced from the date of the Proposal's enactment, during which businesses under ETS scope must obtain a greenhouse gas emissions permit. Throughout this three-year timeframe, these businesses shall be deemed to hold existing greenhouse gas emission permits on a one-time basis. By decision of the Carbon Market Board, the Directorate is authorized to extend this period by up to two years.
- Following the establishment of the carbon credit registry system by the Directorate and publication of the relevant notification on its official website, penal provisions will come into force for those who fail to fulfill carbon credit registration obligations.
III. CONCLUSION
The Proposal establishes a comprehensive legal framework aimed at reducing greenhouse gas emissions and enhancing climate change adaptation efforts. It introduces ETS as an effective market-based mechanism to mitigate emissions, while incorporating flexibility mechanisms, such as free allowance allocations, to help businesses manage carbon costs and economic burdens. Additionally, financial sustainability in the green transformation process and competitiveness in international trade shall be ensured through instruments such as carbon credits and the Carbon Border Adjustment Mechanism.
Beyond its role as a legislative measure, the Proposal seeks to accelerate the green transformation process by encouraging broad societal participation. By clarifying obligations of local governments, the private sector, and public institutions, the Proposal strengthens coordination in fighting climate change, fostering a framework that supports both environmental sustainability and economic growth. In this context, it is expected to make a significant contribution to Türkiye's national and international commitments in combating climate change.
The full text of the Proposal can be accessed here.
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.
