Türkiye’s Climate Law Proposal in Parliament
The Climate Law Proposal, aimed at combating climate change, was submitted to the Grand National Assembly of Türkiye on Friday, February 21. The proposal seeks to provide a legal framework on key issues such as reducing greenhouse gas emissions, adapting to climate change, regulating carbon markets, and preparing local climate change action plans (YİDEP).
Within the scope of the law, an Emission Trading System (ETS) is planned to be established to manage carbon allocations. In its current form, the most significant provisions of the law will pertain to ETS regulations. Under this system, major industrial sectors such as electricity generation, cement, iron and steel, and fertilizer production will be required to pay a per-ton fee to the state for their emissions. In Türkiye, approximately 750 large facilities currently fall under this category. The revenue generated from the ETS is expected to form a substantial budget, which will be used to support green transformation and climate change mitigation efforts. Energy Exchange Istanbul (EXIST) has been authorized to oversee the ETS market under the current draft. A Consultative Committee, composed of private sector representatives and relevant public institutions, will be established to regularly assess the functioning of the market.
The law proposal outlines a more comprehensive framework for the Monitoring, Reporting, and Verification (MRV) of greenhouse gas emissions, expanding on existing regulations. Administrative sanctions will be imposed on businesses that fail to comply with MRV obligations. Accordingly, industrial facilities, energy production plants, and other large-scale enterprises will be required to regularly report their greenhouse gas emissions, and additional sanctions will be imposed for non-compliance. The proposed penalties include administrative fines ranging from 500,000 to 5 million Turkish liras. The data obtained from the MRV system will also be used to determine the payment amounts under the ETS.
The proposal also includes provisions to strengthen local efforts in combating climate change. It mandates the preparation of local climate change action plans (YİDEP) at the provincial level and defines the roles and responsibilities of local governments, administrative institutions, and other stakeholders in preparing and implementing these plans. To ensure local coordination, provincial climate change coordination councils will be established, chaired by the Governor and including local stakeholders.
Additionally, the use, import, and trade of ozone-depleting substances will be regulated within the framework of the climate law.
The draft Climate Law also paves the way for the establishment of a national Carbon Border Adjustment Mechanism (CBAM) in Türkiye, aimed at assessing the carbon footprint of imported goods. Through this mechanism, the carbon footprint of products imported into Türkiye’s customs territory will be calculated, and additional regulations will be introduced for high-emission products. The Turkish industry is expected to be protected against the risk of carbon leakage under this framework. The details of CBAM will be determined through collaboration between the Ministry of Trade and other relevant institutions.
The law also includes provisions to support Türkiye in fulfilling its national and international commitments in the fight against climate change. Upon its enactment, the law will facilitate more comprehensive steps in emission reduction and sustainable development, including the submission of a Nationally Determined Contribution (NDC) to the United Nations.
Click here to access the full text with justification of the for the Climate Law Proposal.