Türkei: First Climate Law of Türkiye Published in the Official Gazette: Emissions Trading, Carbon Credits and New Obligations Begin

Published on July 9, 2025, the new Climate Law marks a turning point in Türkiye’s climate strategy. The law introduces comprehensive changes for public institutions and the private sector, covering emissions trading, carbon credit systems, green financing, and administrative sanctions.

Who is covered by the Climate Law?

The law imposes binding obligations on:

  • Public authorities
  • Private sector companies
  • Natural and legal persons

Local authorities are required to prepare climate action plans by December 31, 2027.

Emissions Trading System (ETS) to be established in Türkiye

Along with the Climate Law, Türkiye will implement its first National Emissions Trading System (ETS):

  • Mandatory emission permits for emitting facilities
  • Carbon pricing aligned with the EU ETS
  • A three-year transition period with pilot implementation
  • Carbon costs in exports to the EU can be covered domestically

Green Financing and Incentive Mechanisms

The Law provides a comprehensive framework for the financing and promotion of green investments:

  • Green bonds, loans and insurance tools
  • Turkish Green Taxonomy to classify sustainable investments
  • Priority support for clean technologies and zero-waste applications

CO₂-Grenzausgleichssystem (SKDM)

Ein dem EU-CBAM entsprechendes nationales System zur Erfassung der CO₂-Emissionen importierter Waren wird eingeführt. Das Handelsministerium wird die Verfahren und Grundsätze für die Umsetzung festlegen.

Carbon Credit System

  • Companies may offset emissions via carbon credits
  • A legal framework for voluntary carbon markets has been established

Administrative Sanctions and Penalties

Businesses that fail to comply with obligations face serious penalties:

  • Administrative fines ranging from TRY 500,000 to 50,000,000
  • Revocation of emission permits, suspension of operations
  • Expulsion from the ETS after 3 years of non-compliance
  • Penalties and operational restrictions for those who fail to share data

Transition Period and Compliance Requirements

  • A three-year phased transition is planned for ETS.
  • During this period, those who fail to comply with the requirements will be eligible for an 80% reduction in penalties.
  • Newly established facilities must obtain emission permits before commencing operations.

What Should Companies Do?

For high-emission sectors like export, industry, energy, construction and logistics, the law brings:

  • New compliance obligations
  • Carbon alignment in international trade
  • Incentive and investment opportunities

The secondary legislation process is ongoing. However, acting early and taking action is critical to both reduce compliance costs and gain a competitive advantage.



Autor: Müge Şengönül
Autor: Sedanur Zengin