INFORMATION NOTE ON THE CLIMATE LAW PROPOSAL
I. INTRODUCTION
This information note outlines the basic regulations and the envisaged institutional structure included in the Draft Climate Law (hereinafter referred to as the “Law”) proposed in the Turkish Grand National Assembly on 20.02.2025. The purpose and scope of the Law are as follows:
• Purpose: To institutionalize the fight against climate change with the goals of “green growth vision” and “net zero emission” and to achieve the 2053 zero emission target.
• Scope: To regulate the legislation, institutional structure and incentive mechanisms related to the reduction of greenhouse gas emissions and climate change adaptation activities.
In this context, the Law includes basic framework provisions on issues such as planning and implementation tools (e.g. strategy and action plans), administrative sanctions, carbon markets and the Emissions Trading System (ETS).
According to the law, in the fight against climate change, the principles of common but differentiated responsibilities and relative capabilities of our country will be taken into account, and the approaches of equality, climate justice, prudence, participation, integration, sustainability, transparency, just transition and progress will be taken as basis.
II. METHODS AND STRATEGIES IN COMBATING CLIMATE CHANGE
Combating climate change is based on two main pillars in the Law:
1. Reduction of Greenhouse Gas Emissions:
• Energy efficiency, circular economy and renewable energy investments are supported in line with the National Contribution Declaration (NCD) and net zero emission target, where relevant institutions and organizations declare their emission reduction and climate change adaptation targets.
• It is envisaged to increase carbon sink capacities by protecting and expanding forests, agriculture and wetlands.
2. Adaptation to Climate Change:
• Regional risk analyses are conducted and preventive measures are developed in terms of disaster, drought, food security and public health.
• Preparation of “Provincial Climate Change Coordination Boards” and “Local Climate Change
Action Plans” at the local level is made mandatory.
The Climate Change Presidency within the Ministry of Environment, Urbanization and Climate Change is positioned as the main coordinator of climate policy.
According to the law, climate change action plans will be prepared at the local level. Provincial Climate Change Coordination Boards chaired by the Governor will develop solutions specific to the needs of the provinces. It has also been stipulated that strategies and action plans for combating climate change will be prepared and updated periodically.
III. EMISSION TRADING SYSTEM (ETS)
The law establishes an “Emission Trading System” that sets a ceiling on greenhouse gas emissions and foresees the trading of emission rights (allocations) through the market. Within the scope of the ETS, it is mandatory to obtain a greenhouse gas emission permit.
The relevant sectors are obliged to submit verified annual emission reports and deliver allocations equal to the amount of emissions. In case of failure to fulfill this obligation, administrative fines and additional allocation delivery obligations are foreseen.
The actors to be established within the scope of the ETS within the framework of the law are as follows:
• Carbon Market Board: It is a high-level policy and decision-making body; It decides how much free allocation will be provided or the offset (carbon credit usage) rates in which sectors within the scope of the ETS.
• Market Operator (EPİAŞ): It organizes and manages the purchase and sale transactions in the carbon market.
• Central Settlement Institution: Responsible for collateral management and cash clearing processes.
Carbon credits obtained from private or public carbon reduction projects can be used to meet a portion of the obligations under the ETS. This application aims to accelerate projects developed in line with voluntary or legal regulations in carbon markets.
According to the law, a portion of carbon market revenues and administrative penalties will be transferred to a special budget item; thus, green technology investments, renewable energy projects and R&D activities will be supported. Financing mechanisms will be classified in line with the “Turkey Green Taxonomy” and efforts will be made to increase the country’s sustainable investment capacity.
IV. ADMINISTRATIVE SANCTIONS AND INSPECTION
Article 14 of the Law regulates administrative fines for many issues regarding the fight against climate change. The same article has drawn the upper limit of the administrative fine to be applied for each act as 50,000,000.00 TL.
The Inspection Authority has been granted to the Climate Change Presidency. The Environment, Urbanization and Climate Change provincial organization to which the Presidency is affiliated has also been assigned to support the Presidency in its inspection activities.
V. EVALUATIONS
The Draft Climate Law places the reduction of greenhouse gas emissions and adaptation to the negative effects of climate change in an institutional framework. Market-based instruments such as ETS, legal obligations, sanctions and financing mechanisms are envisaged in line with the goals of green growth and net zero emissions; a comprehensive climate regime is being established with the participation of all relevant stakeholders (public, private sector, local administrations).
If this draft becomes law, institutions and businesses will have new obligations in many areas such as emission permit procedures or carbon credit trading. Therefore, it is recommended that the draft’s enactment process be closely monitored.
