Türkiye’s first Climate Law (“the Law”) was enacted by the Grand National Assembly of Türkiye on 2 July 2025, thereby gaining formal status within the Turkish legal framework. The Law aims to establish a statutory basis and structure aligned with the Republic of Türkiye’s ratification of the Paris Agreement in October 2021 and its national vision and target of achieving net zero emissions by 2053.
- OVERVIEW
Upon examining sectoral approaches and assessments, it becomes apparent that the most significant driving force behind the drafting and enactment of this Law has been the European Union’s Green Deal and its Carbon Border Adjustment Mechanism (“CBAM”). From a policy perspective, the Law clearly integrates practices that reflect the principle of “profit maximisation within the bounds of sustainability”.
The Law contains provisions on planning and implementation tools for climate change mitigation and adaptation efforts, financial models and instruments, and the design of permitting, licensing, and inspection requirements, together with rules and procedures for these processes. Notably, the Law introduces and defines key concepts such as “just transition”, “primary market”, “allocation”, “emissions trading system (“ETS”)”, “offsetting”, and “climate justice”, thereby granting them legal recognition.
- INSTITUTIONS AND GOVERNANCE
The Law adopts a centralised governance model for the implementation and oversight of its envisaged policies, mechanisms, and practices. At the heart of this structure lies the Climate Change Directorate (“the Directorate”), operating under the Ministry of Environment, Urbanisation and Climate Change (“the Ministry”).
The Directorate’s principal responsibilities may be summarised as (i) coordinating inter-agency efforts and establishing relevant standards; (ii) monitoring progress on greenhouse gas emission reductions and climate adaptation; (iii) regulating market-based mechanisms for carbon pricing; (iv) establishing the ETS and distributing allocations accordingly; (v) overseeing the monitoring, reporting and verification (“MRV”) of emissions.
Furthermore, the Law introduces a mechanism for localised climate governance, aimed at tailoring solutions to Türkiye’s diverse geographical and climatic conditions. To this end, Provincial Climate Change Coordination Boards will be formed. Their main duty is to prepare and monitor the implementation of Local Climate Change Plans that reflect the specific characteristics of each province or region. These Plans must be completed and operational by 31 December 2027. The Ministry may, however, extend this deadline by up to one (1) year at its discretion.
Another institutional component of the governance structure is the Carbon Market Board. Its key responsibilities include: (i) approving the national allocation plan; (ii) determining the distribution of free allocations under the ETS; (iii) deciding the volume of allocations to be made available on the primary market; (iv) overseeing offsetting operations. The Board will be chaired by the Minister of Environment, Urbanisation and Climate Change and composed of deputy ministers of relevant ministries, the Deputy Head of the Presidential Strategy and Budget Office, the Chair of the Capital Markets Board, the Chair of the Energy Market Regulatory Authority, and the Head of the Climate Change Directorate.
- EMISSION TRADING SYSTEM AND CARBON MARKET
Arguably the most transformative feature introduced by the Law is the establishment of a national ETS. The Law is grounded in the internationally recognised “cap-and-trade” model. This model involves setting a national emissions ceiling for the sectors under the ETS, within which businesses are permitted to trade the emissions allowances allocated to them or purchased on the market.
Responsibility for designing and operationalising the ETS lies with the Climate Change Directorate, while the day-to-day functioning of the markets is entrusted to the Energy Markets Operating Corporation (“EPİAŞ”). The Law also permits “offsetting” mechanisms, which are widely used in international practice, offering businesses an additional tool in their carbon management strategies.
Businesses in ETS are required to obtain a greenhouse gas emissions permit within 3 (three) years of the Law’s entry into force. During this transitional period, businesses will be deemed to have such permits by default, allowing them to continue their activities under the ETS. This three-year transition period may be extended by up to 2 (two) further years by the Carbon Market Board. In other words, full compliance with the ETS is expected no later than the year 2030.
Businesses under the scope of the ETS will be required to monitor their emissions data continuously and submit annual reports, which must be verified by independent auditing institutions.
- FINES, SANCTIONS AND DEADLINES
The Law will be entered into force upon its publication in the Official Gazette. However, practical implementation will depend on secondary legislation and regulatory authority decisions, which are to be developed by 31 December 2027. If deemed necessary, the President may extend this deadline by up to 1 (one) year.
Administrative sanctions and fines for breaches of the Law are as follows:
| UNLAWFUL CONDUCT | FINE & ADMINISTRATIVE SANCTION |
| Failure to submit a verified greenhouse gas emissions report within the prescribed period | TRY 500.000 -> TRY 5.000.000
Doubled (2x) for entities subject to the ETS |
| Operation without a greenhouse gas emissions permit | TRY 5,00 per tonne; or
A lump sum of 1.000.000-TL -> 10.000.000-TL |
| Use, import, trade, or placing on the market of ozone-depleting substances | TRY 2.500.000 |
| Failure to comply with ETS allocation surrender obligations | A fine equal to twice the weighted average allocation price for the final 3 months of the year in question, per missing unit |
| Use, trade, or placing on the market of fluorinated greenhouse gases | TRY 2,500,000 + suspension from the Hydrofluorocarbon Control Certificate for 3 to 6 months
Importation of hydrofluorocarbons without quota or in excess of quota | Additional fine of TRY 1,000,000 and quota deduction |
| The maximum administrative fine that may be imposed for each violation under the Law is
TRY 50,000,000. |
|
The distribution of allowances will be regulated by the Carbon Market Board and may involve both free allocation and auction-based sales. All allowances held by businesses will enjoy exceptional protection and cannot be seized, pledged, included in bankruptcy estates, or subjected to precautionary legal measures, including those related to public receivables.
The Law also acknowledges the need for a phased implementation, aligned with market realities and the normal course of commercial activity. According to the transitional provisions, a pilot phase will precede full ETS implementation. The details of this pilot phase will be set by the Carbon Market Board. During this phase, administrative fines for failure to comply with obligations will be applied at a reduced rate of 80% (eighty percent).
- CONSEQUENCES
Combating the climate crisis is at the top of our global agenda. The most important stage is to update strategies and create action plans to reduce greenhouse gas emissions and, of course, to put them into practice. It is expected that the implementation of the Law and subsequent secondary legislation will serve this purpose.
In particular, in order to ensure effective management of water resources, planning tools will be prepared by relevant public institutions and organizations and sustainable management of the sinks created in non-forest areas within the scope of combating desertification and erosion, afforestation and soil conservation will be ensured in line with the net zero emission target.
The secondary legislation that will follow this regulation, which is generally a framework law, will be of great importance in terms of implementation. Although it is subject to criticism from different angles in the public, the Law, which is an important regulation in this field, will serve to ensure unity of practice and regulation by defining 39 new terms.
The most criticized point in the Law is the establishment of the ETS. These mechanisms are part of a cycle known internationally as carbon trading. This method aims to offset the pollution caused by companies to some extent and at the same time provide financing for climate-friendly projects. However, there is now serious criticism that this method has become a way for economically powerful companies to avoid the responsibility for real emission reductions. It is especially debated due to the financial burden it will bring to small businesses and the lack of participation of climate associations in the process.
In addition, since how much carbon emissions will be allowed for which sector is not yet regulated and will be determined in secondary legislation, this creates another issue of uncertainty and debate. It is obvious that the same emission limit will not be set for electricity generation methods that have different characteristics on a source basis but ultimately produce the same output. Therefore, the applicability and efficiency of the Law will be in parallel with the applicability and efficiency of the secondary legislation to be prepared.
Considering such an important issue and the risks that humanity is now facing, the Climate Law is of great importance. We hope that secondary legislation will be enacted that will serve to realize the targeted objectives and examples of implementation will be experienced.
