The Climate Law (“Law”), which sets forth the principles governing climate change mitigation and adaptation, has been adopted by the Grand National Assembly of Türkiye (“TBMM”). The Law will enter into force upon its publication in the Official Gazette.
Aligned with the vision of green growth and the 2053 net-zero emissions target, the Law establishes the fundamental principles for reducing greenhouse gas (GHG) emissions, adaptation to climate change, related planning and implementation tools, revenue sources, permitting and inspection mechanisms, and the legal and institutional framework.
Entities Subject to the Law and Their Obligations
Establishment of the Emissions Trading System (ETS) and Transitional Provisions
Administrative Fines and Other Sanctions
1-Failure to submit a verified GHG emissions report within the prescribed period shall be subject to an administrative fine ranging from TRY 500,000 to TRY 5,000,000. Entities subject to the ETS shall be penalized at twice the standard rate.
2-In the event of non-compliance with the rules, prohibitions, or restrictions relating to ozone-depleting substances:
3-In violation of the procedures, principles, prohibitions, or restrictions related to fluorinated greenhouse gases:
4-If a verified GHG emissions report is not submitted within the required time in breach of ETS-related procedures or restrictions, accounts shall be restricted to fulfilling delivery obligations only; all other transactions shall be suspended. Submission of the report at a later date shall remove such restrictions but shall not prevent the imposition of administrative fines.
5-Entities operating within the scope of the ETS without a valid GHG Emissions Permit—either due to non-obtainment, expiration, or revocation of the permit—shall be subject to administrative fines as follows:
6-Entities subject to the ETS that fail to fulfill at least 80% of their annual allowance surrender obligations within the prescribed time period for 3 consecutive years shall have their GHG Emissions Permit revoked and shall be prohibited from obtaining a new permit for a period ranging from 3 to 6 months.
7-An administrative fine of TRY 170,000 shall be imposed on natural persons and private legal entities who fail to comply with the information, document, or data submission obligations stipulated under the Law or who make misleading declarations.
8-Administrative fines prescribed under the Law shall be doubled in case of the first repetition of the same violation within 3 years, tripled for the second and subsequent repetitions.
9-For violations of the Law or secondary legislation enacted thereunder, the Ministry may, on a one-time basis only and for a period not exceeding one year, grant a deadline for rectifying the non-compliant activity. If the violation is not remedied within this period, the activity may be partially or entirely suspended by the Ministry until compliance is achieved. The granting of a deadline or the suspension of the activity shall not preclude the imposition of administrative fines as provided under the Law.
10-The amount of administrative fine to be imposed for each individual violation under the Law shall not exceed TRY 50,000,000.
An administrative lawsuit could be filed against the Directorate for the administrative fines imposed, but filing a lawsuit will not stop the collection of the fine.
Unless otherwise notified by the relevant competent authorities, obligations regarding the preparation and adaptation of legislation and planning instruments related to greenhouse gas emission reduction and climate change adaptation activities shall be fulfilled by the relevant institutions and organizations no later than 31 December 2027, as stipulated by the Law.
You can contact our consultants for more detailed information.