The Climate Law, which was drafted in line with the United Nations Framework Convention on Climate Change and the Paris Agreement, which Turkey joined in 2021, has been established within the scope of the commitment to achieve net-zero emissions by 2053. The law includes detailed provisions on greenhouse gas emissions, adaptation activities, planning tools, permit control mechanisms, and penalties. The important changes are as follows:
1-Climate Change Presidency
It has been stated that a Climate Change Presidency will be established under the Ministry of Environment, Urbanization, and Climate Change, and it is envisaged that this institution will carry out administrative inspections and impose penalties.
2-Emissions Trading System
The law introduces the concepts of the Emissions Trading System (ETS) and carbon credits, which will be newly implemented in our country, and makes it mandatory for businesses within the scope of the law to obtain greenhouse gas emission permits. For example, the concept of “allocation” in the law refers to transferable, registered, and time-limited greenhouse gas emission rights equivalent to one ton of carbon dioxide, and the law regulates the ability of businesses to operate within these rights or transfer them.
3-Penalties
The law regulates comprehensive administrative fines, notification appeal procedures, and activity suspension mechanisms: For example, Failure to Submit an Emission Report: A penalty of between 500,000 and 5,000,000 ₺ is foreseen, while this penalty is foreseen to be applied at double the amount for businesses integrated into the ETS. Ozone and Fluorinated Gas Violations: Violations of obligations are subject to fines ranging from 120,000 to 2,500,000 Turkish Lira, import bans, and import certificate revocations. Increase in Penalties and Suspension of Activities: In case of repeated violations, penalty rates will increase exponentially; if the violation is not rectified, a one-time grace period will be granted, and if no resolution is achieved, activities may be suspended.
4-Implementation Process
A pilot implementation period will be conducted before the Electronic Trading System (ETS) is fully implemented, during which the penalties specified in the law will be applied at an 80% reduced rate. At the time of writing this article, the law has not yet been approved by the President and published in the Official Gazette. Within three years of the law coming into effect, businesses within the scope of the ETS must obtain a Greenhouse Gas Emission Permit, and it is stated that during this period, businesses within the scope of the law will be deemed to have the necessary permits on a one-time basis. The law provides for the completion of preparations for full implementation by December 31, 2027, with the necessary coordination between local authorities and central administration.
