The Climate Law has been published in the Official Gazette and has come into effect.

The Climate Law has been published in the Official Gazette and has come into effect.

09.07.2025 09:32

The first "Climate Law" of Turkey, which was accepted by the Grand National Assembly of Turkey on July 2 and became law, has been published in the Official Gazette and has come into effect.

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The Climate Law, which was accepted and enacted in the Grand National Assembly of Turkey on July 2, has been published in the Official Gazette. Accordingly, the Law aims to combat climate change in line with the vision of green growth and the net zero emissions target, covering the reduction of greenhouse gas emissions, which is essential in the fight against climate change, as well as adaptation activities, planning and implementation tools, revenues, permits and inspections, and the procedures and principles of the legal and institutional framework related to these.



The Law includes definitions such as "Just Transition," "Primary Market," "Equivalence," "Emission Trading System (ETS)," "Embedded Greenhouse Gas Emissions," "Voluntary Carbon Markets," and "Climate Justice."



According to the Law, which establishes general principles in the fight against climate change, Turkey's "common but differentiated responsibilities and respective capabilities" principle will be taken into account, and approaches such as equality, climate justice, precaution, participation, integration, sustainability, transparency, just transition, and progress will be prioritized.



Public institutions and organizations, as well as real and legal persons, will be obliged to comply with the measures and regulations taken in consideration of the public interest and to implement them in a timely manner.



In the Nationally Determined Contribution, the country's development priorities and specific conditions will be taken into account in line with the net zero emissions target, and measures will be taken within this framework.



Progress related to the reduction of greenhouse gas emissions and adaptation activities to climate change will be monitored annually by the Directorate of Climate Change.



In order to take necessary measures, the Directorate of Climate Change will be authorized to ensure inter-institutional coordination within its area of responsibility, determine activities and standards, monitor developments, and regulate market-based mechanisms related to carbon pricing.



Public institutions and organizations, as well as real and legal persons, will prepare, implement, support, and cooperate on plans and projects within the framework of their own authority and responsibilities.



Without prejudice to the provisions of the Personal Data Protection Law, the Directorate of Climate Change will be authorized to directly request the information, documents, and data it deems necessary for the implementation of the regulation from public institutions and organizations, as well as real and legal persons. Those from whom information and documents are requested will share them with the Directorate free of charge within the requested time.



The Directorate will also obtain the data it needs for its own operations primarily from the National Geographic Information Platform. It will transfer the data it obtains and the data it produces to the National Geographic Information Platform to be shared with public institutions and organizations.



The Directorate of Climate Change may obtain data not available on the National Geographic Information Platform by making protocols with relevant public institutions and organizations. The procedures and principles regarding the sharing of information and documents related to national defense and national security will be jointly determined by the Ministry of Environment, Urbanization and Climate Change and the relevant ministry.



The Ministry of Environment, Urbanization and Climate Change may delegate its powers to the Directorate, provided that it clearly defines its boundaries and in writing when necessary.



CLIMATE CHANGE MITIGATION ACTIVITIES



The Law defines the activities for combating climate change. Accordingly, greenhouse gas emissions will be reduced in line with the Nationally Determined Contribution, the net zero emissions target, and the strategies and action plans published or updated by the Directorate of Climate Change.



The reduction activities for greenhouse gas emissions specified sectorally in the Nationally Determined Contribution will be carried out within the duties and responsibilities assigned to relevant institutions and organizations by legislation.



In order to implement the sectoral policies included in the Nationally Determined Contribution and to achieve the targets, the existing duties and responsibilities of relevant institutions and organizations will be reviewed in line with the emerging needs. In this context, regulations may be made by relevant public institutions and organizations within the framework of the Nationally Determined Contribution and the net zero emissions target, taking into account the opinions of the Ministry and relevant institutions.



Relevant public institutions and organizations will be obliged to adapt, prepare, implement, monitor, and update planning tools that include their medium- and long-term targets within the framework of greenhouse gas emission reduction activities.



Institutions and organizations will be obliged to take reduction measures to be applied in the sectors included in the Nationally Determined Contribution in a manner compatible with the net zero emissions target and the circular economy approach, such as improving energy, water, and raw material efficiency, preventing pollution at the source, increasing the use of renewable energy, reducing the carbon footprint of products, businesses, institutions, and organizations, using alternative clean or low-carbon fuels and raw materials, promoting electrification, developing and increasing the use of clean technologies, and establishing, implementing, and monitoring a zero waste system, taking into account the requirements of just transition.



To balance emissions in order to achieve the net zero emissions target, measures will be taken by relevant institutions and organizations to prevent carbon sink losses in forests, agriculture, pastures, and wetlands, and to ensure the protection and increase of sink areas and protected areas.



CLIMATE CHANGE ADAPTATION ACTIVITIES



In line with the Nationally Determined Contribution, the net zero emissions target, and the strategies and action plans published or updated by the Directorate of Climate Change, adaptation activities will be carried out by relevant institutions and organizations to prevent existing or potential losses and damages related to climate change, minimize risks, or take advantage of opportunities.



Additionally, the climate change adaptation activities included in the Nationally Determined Contribution will be carried out within the duties and responsibilities assigned to institutions and organizations by legislation.



In order to implement the sectoral policies included in the Nationally Determined Contribution and to achieve the targets, the existing duties and responsibilities of relevant institutions and organizations will be reviewed in line with the emerging needs. In this context, regulations may be made by relevant public institutions and organizations within the framework of the Nationally Determined Contribution and the net zero emissions target, taking into account the opinions of the Ministry and relevant institutions.



Relevant public institutions and organizations will be obliged to prepare planning tools related to climate change adaptation at national and local levels, as well as vulnerability and risk analyses, to consider these tools and analyses in investment and planning activities, and to implement them.



Planning tools will be prepared and implemented by relevant public institutions and organizations to ensure the effective management of water resources against the impacts of climate change.



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Measures will be taken by relevant public institutions and organizations to reduce the impacts of climate change on ecosystems and biodiversity, ensuring the conservation of marine and terrestrial protected areas, thereby enhancing the quality and proportion of protected areas. In areas affected or likely to be affected by climate change, land degradation will be balanced.

In the context of combating desertification and erosion, as well as afforestation and soil conservation, the sustainable management of carbon sinks created in non-forest areas will be ensured in line with the net zero emissions target.

To ensure the sustainability of the agricultural sector, relevant public institutions and organizations will aim to provide food security through climate-resilient crop patterns, while considering the balance between the conservation and use of natural resources, ecosystems, and biodiversity. Techniques and technologies needed will be disseminated, and planning tools that take into account ecosystem-based adaptation approaches, nature-based solutions, and water budgets will be developed, along with the widespread implementation of climate-resilient practices.

To reduce the losses and damages caused by climate change-related disasters, risk assessment, monitoring, information dissemination, and early warning systems will be developed based on integrated disaster management principles.

PLANNING AND IMPLEMENTATION

In the plans, programs, strategies, action plans, and other policy documents prepared by institutions and organizations, the principles set forth in the strategy and action plans published by the Climate Change Directorate regarding the fight against climate change will be taken into account within the framework of the green growth vision and net zero emissions target.

Climate change strategy and action plans will be prepared, implemented, monitored, evaluated, and updated periodically at the national level in coordination with the Climate Change Directorate, in collaboration with relevant institutions and organizations, for the purpose of reducing greenhouse gas emissions and implementing climate change adaptation activities.

To determine the strategy, action, and implementation areas suitable for the conditions of the province and to ensure their implementation, a Provincial Climate Change Coordination Board will be established in each province, chaired by the governor, consisting of representatives from relevant institutions and organizations, if any, and representatives from local governments. The secretariat of the Board will be carried out by the provincial organization of the Ministry of Environment, Urbanization, and Climate Change, and the working procedures and principles of the Board will be determined by the Ministry.

Local climate change action plans will be prepared or commissioned to be prepared in a holistic manner for each province, under the coordination of the governor, with the participation of relevant institutions and organizations, taking into account the requirements of a just transition for the reduction of greenhouse gas emissions and climate change adaptation. These plans will be submitted to the Provincial Climate Change Coordination Board for decision-making.

In the processes of preparing or monitoring local climate change action plans, relevant institutions and organizations will share the requested documents, information, and data within the framework of the relevant legislation.

Sectoral vulnerability and risk analyses will be periodically prepared and updated by the Directorate using climate models to serve as a basis for strategy and action plans.

PRINCIPLES REGARDING FINANCIAL INSTRUMENTS

For activities and investments to be carried out by institutions and organizations to combat climate change, the development and use of climate finance and climate change mitigation incentive resources, the development of insurance instruments, and the promotion of green and sustainable capital market instruments, bank financing, and other financial instruments will be essential.

Within the framework of circular economy goals and zero waste practices, studies will be conducted in coordination with relevant ministries by the Ministry of Environment, Urbanization, and Climate Change to determine the mandatory usage rates of products obtained from the reuse of products, the use of waste as by-products or alternative raw materials, and recycling and recovery.

The Climate Change Directorate will prepare national, sectoral, and thematic reports; develop climate change incentive mechanisms to facilitate the direction of financial resources to climate change mitigation investments; establish and manage the Turkey Green Taxonomy.

A Border Carbon Adjustment Mechanism (BCAM) may be established to address the embedded greenhouse gas emissions of goods imported into the Turkish Customs Area. Reporting, scope, content, procedures, and principles regarding the BCAM will be determined by the Ministry of Trade in coordination with relevant ministries.

In the planning and implementation tools prepared by relevant institutions and organizations, increasing technological self-sufficiency capacity will be set as a priority goal, and the development and widespread use of clean technologies will be essential.

The Directorate will be authorized to cooperate with relevant institutions to monitor new technological developments aimed at combating climate change, such as carbon capture and storage technologies and hydrogen technologies, to guide institutions in their work in these areas, and to coordinate with relevant institutions.

In coordination with relevant institutions, institutes and research and application centers may be established.

Institutions and organizations will carry out training, awareness-raising, and capacity-building activities to increase public awareness and make society sensitive to the effects of climate change.

Necessary studies for updating curricula and teaching programs at all educational levels and for training a green workforce will be carried out in coordination with the Ministry of National Education and the Higher Education Council.

The procedures and principles of the applications will be determined by the relevant public institutions and organizations within their responsibilities, in line with the Nationally Determined Contribution, long-term climate change policy documents, and the established net zero emissions target, after obtaining the opinion of the Ministry.

According to Turkey's first Climate Law, an ETS will be established by the Climate Change Directorate, a national allocation plan will be prepared, and allocations will be distributed. In this context, flexibility mechanisms and market stability mechanisms may also be developed. The market operator will operate the ETS market.

Within the scope of the ETS, businesses carrying out activities that directly cause greenhouse gas emissions, the principles of which are determined by regulation, will be required to obtain a greenhouse gas emission permit from the Climate Change Directorate to carry out these activities.



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In accordance with the procedures and principles determined by the regulation, the greenhouse gas emission permit will be updated or canceled by the Presidency due to changes in the nature or operation of the facility during the validity period of the greenhouse gas emission permit, as well as changes that will occur in the real or legal persons holding the greenhouse gas emission permit.

It will be mandatory for businesses included in the ETS scope to deliver annual allocations corresponding to the verified annual greenhouse gas emission values.

A business that fails to fulfill its allocation delivery obligation will also be required to deliver an allocation equal to the greenhouse gas emissions subject to the determined penalty when delivering allocations for the next calendar year.

Free allocations within the ETS scope may be provided in proportion to historical emission data or benchmark values. National allocation plans will be published in the Official Gazette. Transactions related to allocations that will be traded in the ETS market will not be subject to the provisions of the Public Procurement Law.

Allocations cannot be subject to collateral agreements. Free allocations subject to the delivery obligation cannot be seized unless they are transferred from the account in the transaction registration system where they were first transferred. The electronic export of allocations and the tracking of related rights based on the rights holders will be mandatory.

The cessation of the facility's operation before the time of fulfilling the delivery obligation, the liquidation of the business, or the decision to enter into concordat will not prevent the fulfillment of the delivery obligation.

Assets in the default guarantee account created with collateral related to financial reconciliation and other financial transactions cannot be used for purposes other than their intended use, cannot be seized, cannot be pledged, will not be affected by liquidation decisions of administrative authorities, cannot be included in bankruptcy estates, and cannot be subject to precautionary measures.

CARBON MARKET BOARD

The Carbon Market Board will consist of the Deputy Minister representing the Ministry of Environment, Urbanization and Climate Change, the Ministry of Energy and Natural Resources, the Ministry of Treasury and Finance, the Ministry of Industry and Technology, the Ministry of Trade, the Ministry of Agriculture and Forestry, the Ministry of Transport and Infrastructure, the Deputy President of the Presidential Strategy and Budget, the Chairman of the Capital Markets Board, the Chairman of the Energy Market Regulatory Authority, and the President of Climate Change.

The secretariat of the Board will be conducted by the Presidency. When deemed necessary, representatives from other public institutions and organizations, civil society organizations, professional organizations, universities, and private sector representatives may be invited to meetings without voting rights.

The Board will approve the national allocation plan, decide on the distribution of free allocations in the ETS market, determine the amount of allocations to be offered for sale in the primary market, decide on the extent to which balancing transactions can be used within the ETS, determine plans, policies, strategies, and actions related to the ETS, identify sectors, projects, and activities that will be subject to the international carbon market, and establish relevant restrictions and basic policies regarding imports and exports.

The Carbon Market Board will convene with a two-thirds majority of the total number of members. Meeting decisions will be made by open voting and by a simple majority of the total number of members. In the event of a tie, the decision will be made in favor of the vote cast by the board president.

The Advisory Board will be chaired by the President of the Union of Chambers and Commodity Exchanges of Turkey, and will consist of one representative at the decision-making level from the Independent Industrialists and Businessmen's Association, the Turkish Industrialists and Businessmen's Association, the International Investors Association, the Turkish Exporters Assembly, the Foreign Economic Relations Board, the Turkish Banks Association, the Turkish Insurance, Reinsurance and Pension Companies Association, the Financial Institutions Association, the Turkish Capital Markets Association, and the Turkish Chamber of Environmental Engineers, along with a representative from the Presidency and other public institutions and organizations, professional organizations, civil society organizations, and universities invited as needed according to the subject matter.

The secretariat of the Advisory Board will be conducted by the Union of Chambers and Commodity Exchanges of Turkey. The Advisory Board will make advisory decisions regarding strategies and actions related to the ETS and the international carbon market. The secretariat will send these decisions to the Presidency with justifications for submission to the Carbon Market Board.

The Presidency will manage the allocation processes and the monitoring, reporting, and verification process of greenhouse gas emissions, regulate balancing activities, determine the use of carbon credits within the ETS, carry out the necessary work and transactions to develop and decide on policies regarding the import and export of carbon credits at the international level, cooperate with other markets, and carry out studies to determine plans and policies for mutual recognition agreements within the ETS.

TASKS

The Energy Market Regulatory Authority will determine the procedures and principles for market supervision and inspection regarding market-distorting behaviors within the scope of the ETS market, taking the opinion of the Capital Markets Board.

The market operator will carry out financial reconciliation transactions and other financial transactions related to the markets, and will be obliged to report market-distorting behaviors to the Presidency and the Energy Market Regulatory Authority.

The market operator will organize the necessary arrangements for the trading of allocations and other standardized contracts approved by the Presidency and the Energy Market Regulatory Authority regarding emissions trading in the ETS market and will fulfill the duties of the market operator.

Additionally, the market operator will establish a transaction registration system for the execution of the export, holding, transfer, cancellation, and redemption of allocations, will electronically track and store registered allocations and related rights based on the rights holders, and will ensure the confidentiality of the records within the framework stipulated by the relevant legislation.

The central clearing institution will carry out collateral management and cash settlement activities related to the ETS market.

In order to ensure market transparency, data on free allocations, verified annual greenhouse gas emission values, and information regarding the allocation delivery obligations of facilities may be shared with the public in accordance with the decision of the Carbon Market Board. The provisions of the Electricity Market Law regarding the information and documents requested by the Energy Market Regulatory Authority and the market operator within the scope of the supervision and inspection activities to be carried out in the ETS market will remain reserved.

Regulations have been included under the title "Voluntary Carbon Markets and Balancing."



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The Emission Trading System (ETS) allows for the offsetting of a portion of allocation obligations with an equivalent amount of carbon credits.



For the offsetting transactions to be carried out under the ETS and voluntary commitments, the principles of a national carbon crediting and offsetting system that generates carbon credits through greenhouse gas emission reduction or mitigation activities and the enhancement of sink areas will be determined by the Climate Change Authority.



If it is determined that the information, documents, and data submitted regarding these offsetting projects are erroneous or fraudulent, the corresponding offsetting amount cannot be used for allocation delivery obligations and will be considered as not fulfilled. In this case, sanctions will be imposed on the project owner.



Within the scope of this regulation, the use of carbon credits, their production, and the establishment and implementation of the national carbon crediting system will be determined by the Climate Change Authority.



Cooperation will be established with relevant organizations for the development of national standards and methodologies. Owners of projects that have started or will start carbon credit production in any voluntary carbon market within the country, in accordance with national or international standards, will be obliged to register their projects in the carbon credit registry system within the time frame determined by the Climate Change Authority.



The Climate Change Authority may cooperate with organizations that develop international standards in this context.



The law also regulates the provisions regarding the special revenues to be obtained and the budgeting of these revenues.



Accordingly, for the purposes determined, "revenues obtained from greenhouse gas emission permits," "allocation sales revenues in the primary market under the ETS, revenues obtained from transactions related to the market stability mechanism," "50% of the revenues obtained by the market operator from the ETS market," "contributions received for authorized carbon credits in international carbon markets," and "50% of the administrative fines applied under the Law" will be recorded as special revenues.



All amounts corresponding to these revenues will be foreseen as special appropriations in the budget of the Climate Change Authority and will be utilized by the Authority.



The President will be authorized to add appropriations for revenue realizations exceeding the appropriation amount and to carry over the unspent portions of the appropriated amounts to the budgets of the following year.



On the other hand, the procedures and principles regarding the collection of these revenues and the use of appropriated amounts allocated in the budget will be determined by a regulation to be issued by the Climate Change Authority, upon the approval of the Ministry of Treasury and Finance and the Presidency of Strategy and Budget.



THE AUTHORITY WILL BE AUTHORIZED TO ESTABLISH A REVOLVING CAPITAL ENTERPRISE



The Climate Change Authority will be authorized to establish a revolving capital enterprise. The initial capital of the revolving capital enterprise will be 10 million Turkish Liras. The President will be authorized to increase this capital amount up to 5 times.



The areas of activity, duties, revenues, expenditures, operation, audit, and the procedures and principles related to the implementation of the revolving capital enterprise will be regulated by a regulation to be issued by the Climate Change Authority, with the approval of the Presidency of Strategy and Budget and the Ministry of Treasury and Finance.



These revenues cannot be used outside the purposes of green transformation and combating climate change. Up to 10% of these revenues can be used for activities to be carried out within the scope of just transition practices. In this context, the resources allocated as special appropriations in the Authority's budget can be transferred to the relevant administrations within the framework of the relevant legislation, exclusively for use in just transition practices, as "special appropriations." Transfers made to other administrations within this regulation will not be subject to the limitations regarding appropriation transfers regulated in Article 21 of the Public Financial Management and Control Law and the relevant year’s Central Government Budget Law. The President will be authorized to carry over and record the unspent portions of the amounts transferred to the administrations within the general budget to the budgets of the following year.



The regulation also stipulates the use of supports for green transformation and combating climate change.



Accordingly, in order to support Turkey's green transformation and combat climate change, activities that contribute to the reduction of greenhouse gas emissions or the implementation of climate-friendly investments with high adaptation potential to climate change, as well as the research, development, and sectoral technological transformation needs required for green growth, will be supported.



In line with the decisions of the Carbon Market Board, mechanisms will be established to encourage legal entities operating in strategically prioritized sectors, especially those under the ETS, to utilize or be incentivized to use supports for green transformation, combating climate change, and just transition.



The revenues of institutions and organizations will be used within the scope of their duties to support climate investments, to develop insurance instruments aimed at reducing the risk perception and borrowing costs of climate investments, to promote the issuance of green and sustainable capital market instruments, and to develop financial instruments that can provide guarantees, grants, and financing cost support.



In the use of supports for green transformation and combating climate change, the stock amount of multi-year commitments will not exceed twice the total of the finalized special revenue realizations for the last 4 years, calculated by increasing the previous year's revaluation rate each year.



The procedures and principles regarding the implementation of this provision will be determined by the Ministry of Environment, Urbanization and Climate Change, after obtaining the opinions of the Presidency of Strategy and Budget, the Ministry of Treasury and Finance, and the relevant public institutions and organizations.



ADMINISTRATIVE FINES



Administrative sanctions related to the obligations specified in the regulation have also been determined.



Accordingly, those who violate the prohibitions or restrictions regarding the monitoring of greenhouse gas emissions or fail to submit the verified greenhouse gas emission report within the specified time will be subject to an administrative fine ranging from 500,000 Turkish Liras to 5 million Turkish Liras. The procedures and principles regarding the implementation of this provision will be determined by regulation, taking into account the annual emissions prudently calculated based on the installed capacity of the facilities.

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These penalties will be applied at double the rate for businesses within the scope of the ETS.



Those who use, import, trade, and market substances that deplete the ozone layer in violation of the procedures and principles, prohibitions, or restrictions set forth by the legislation regarding substances that deplete the ozone layer will be fined 2.5 million Turkish liras. Individuals and legal entities providing maintenance, repair, and service for products or equipment containing substances that deplete the ozone layer will be fined 250 thousand Turkish liras, and those who do not comply with the labeling provisions for products or equipment containing substances that deplete the ozone layer will be fined 120 thousand Turkish liras.



Those who use, trade, and market fluorinated greenhouse gases in violation of the procedures and principles, prohibitions, or restrictions will be fined 2.5 million Turkish liras, and a Hydrofluorocarbon Control Certificate will not be issued for a period of 3 to 6 months.



Those who import hydrofluorocarbons without quotas or in excess of the quota will be fined 1 million Turkish liras, and in the following year, their quota will be reduced by the amount exceeding the quota.



Those who do not comply with the labeling provisions for containers, products, or equipment containing fluorinated greenhouse gases will be fined 120 thousand Turkish liras.



Those who do not enter notifications and reports into the database within the specified time or do not update the data will be fined 120 thousand Turkish liras.



Individuals and legal entities intervening in equipment containing fluorinated greenhouse gases or whose operation relies on these gases will be fined 120 thousand Turkish liras.



In the event that a verified greenhouse gas emission report is not submitted on time under the legislation regarding the monitoring of greenhouse gas emissions in violation of the procedures and principles, prohibitions, or restrictions related to the ETS, no transactions will be allowed except for the fulfillment of delivery obligations based on the allocations in the accounts in the transaction record system.



The obstacle in the accounts will be lifted upon the submission of the verified greenhouse gas emission report. The lifting of the obstacle in the accounts with the submission of the report will not prevent the imposition of an administrative fine.



For businesses within the scope of the ETS that operate without obtaining a greenhouse gas emission permit or continue their activities with expired or revoked greenhouse gas emission permits, businesses with a verified annual greenhouse gas emission report will be fined 5 Turkish liras for each ton of carbon dioxide equivalent emission amount stated in the report with the highest emission value submitted to the Climate Change Authority in the last 5 years, while businesses without a verified annual greenhouse gas emission report will be fined between 1 million Turkish liras and 10 million Turkish liras.



The fines to be applied to businesses without a verified greenhouse gas emission report will be evaluated based on equivalent businesses with a verified greenhouse gas emission report in terms of sector and capacity. The amounts and principles regarding the conditions under which this will be applied and to which capacity facilities will be determined by the regulation to be issued by the Climate Change Authority.



Those who do not deliver the required amount of allocations within the specified time under the ETS will be fined an amount equivalent to twice the higher of the primary market weighted average allocation price for the last 3 months of the year to which the verified greenhouse gas emission report belongs and the secondary market weighted average allocation price for the last 3 months for each undelivered allocation.



For businesses that do not fulfill their obligation to deliver at least 80% of their allocations each year for 3 consecutive years, their greenhouse gas emission permits will be revoked, and a new greenhouse gas emission permit will not be issued for a period of 3 to 6 months.



Project owners who do not register their projects in the carbon credit registry system within the time specified by the Climate Change Authority will be fined 120 thousand Turkish liras. The administrative fine will not eliminate the obligation to register the project.



Individuals and private legal entities who do not fulfill the obligations to provide information, documents, and data as stipulated in the regulation or who make misleading statements will be fined 170 thousand Turkish liras.



In the event of a violation of the relevant provisions of the electricity market legislation within the scope of activities subject to this regulation, administrative sanctions will be imposed by the Energy Market Regulatory Authority. The provisions of the Turkish Penal Code and other laws regarding the situation where the act constitutes a crime will remain in effect.



THE ADMINISTRATIVE FINE AMOUNT WILL NOT EXCEED 50 MILLION LIRAS



The administrative fines specified by the law will be increased by one time for the first repetition and by two times for the second and subsequent repetitions within 3 years from the date the acts requiring these fines are notified to the relevant party.

Those who act contrary to this regulation and the regulations may be granted a one-time period by the Ministry of Environment, Urbanization, and Climate Change to correct the violation, provided that it does not exceed one year. If the violation is not corrected by the end of the granted period, the activity will be partially or completely suspended by the Ministry until the violation is corrected. Granting a period and suspending the activity will not prevent the imposition of administrative fines stipulated by the law.



The amount of administrative fines to be applied for each act under the law will not exceed 50 million Turkish liras.



Without prejudice to the provisions of the Electricity Market Law, the authority to supervise acts subject to administrative sanctions due to non-fulfillment of the obligations set forth in this regulation will belong to the Climate Change Authority.



In cases where on-site inspection and supervision are required, if deemed necessary, the inspection will be carried out by the provincial organization of the Ministry of Environment, Urbanization, and Climate Change in cooperation with the relevant units of the Climate Change Authority on behalf of the Authority.



In the inspections to be carried out by the Climate Change Authority, it is stipulated that necessary facilitation will be provided to ensure that the inspection personnel do not face difficulties and that the necessary information and documents are provided.

The authority to issue administrative sanction decisions stipulated in the regulation will belong to the Climate Change Authority.



THE AUTHORITY HAS SUPERVISION AUTHORITY FOR ENVIRONMENTAL LAW PROVISIONS



A report will be prepared by the authorized inspection personnel regarding the acts requiring the imposition of administrative sanctions by the Climate Change Authority, the qualifications and scope of which will be determined by regulation. The Authority will evaluate the report and issue the necessary administrative sanction decision.



The administrative sanction decision will be notified to the relevant party by the Climate Change Authority. Legal action can be taken against the Authority in administrative courts regarding administrative sanction decisions.



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Filing a lawsuit will not stop the collection of the penalty imposed by the authority. The provisions of the Misdemeanor Law regarding the collection procedure of administrative monetary fines will be applied.

Unless otherwise stipulated in the law, the procedures and principles regarding the implementation of this regulation will be determined by the Directorate of Climate Change.

In cases where there are no provisions in this regulation, the relevant provisions of the Environmental Law, the Misdemeanor Law, the Electricity Market Law, and other laws will be applied to the extent that they are appropriate.

Regulations are being made in the Environmental Law to ensure that there is no duplication regarding the issues included in the job definitions of the Directorate of Climate Change and to allow for the delegation of authority to the Directorate when necessary.

Accordingly, the Directorate of Climate Change is granted the authority to supervise compliance with the provisions of the Environmental Law.

The provision in the Environmental Law that determines the administrative monetary fines imposed on those who act contrary to the prohibitions or restrictions regarding the tracking of greenhouse gas emissions is being repealed.

A NEW PROVISION IS ADDED TO THE ELECTRICITY MARKET LAW

With this regulation, changes are also being made to the Law on the Organization and Duties of the Energy Market Regulatory Authority.

Accordingly, the Energy Market Regulatory Board (EPDK) will be responsible for fulfilling the duties assigned to the Energy Market Regulatory Authority by the Electricity Market Law and other laws regarding the Emission Trading System.

A new provision is added to the Electricity Market Law. Accordingly, if market-distorting behavior is detected in all markets and bilateral agreements, including the Emission Trading System market operated or financially reconciled by EPİAŞ, the EPDK will impose administrative monetary fines of up to 2 million Turkish liras for individuals and up to 20 million Turkish liras for legal entities, depending on the severity of the violation.

However, if a benefit is obtained or damage is caused by committing this act, the amount of the administrative monetary fine to be imposed shall not be less than twice the amount of this benefit or damage.

For the types of market-distorting behavior and the necessary measures to be taken and implemented to ensure the effective and healthy functioning of the market, including temporarily partially or completely suspending the market activity authorizations of the relevant parties, the procedures and principles, as well as the factors to be considered in determining the amount of administrative monetary fines, will be regulated by the EPDK with a regulation, taking the opinion of the Capital Markets Board.

Before the ETS is fully implemented, a pilot application period will be conducted. The scope, duration, and procedures and principles regarding the pilot application period will be determined by the Carbon Market Board, taking the opinions of relevant institutions, organizations, and civil society organizations into account. During the pilot application period, administrative monetary fines imposed due to non-compliance with the obligations specified in the regulation will be applied with an 80% reduction.

Within 3 years from the date the regulation comes into force, businesses that will fall under the scope of the ETS will be required to obtain greenhouse gas emission permits. During the three-year period, businesses will be considered to have greenhouse gas emission permits for the purpose of continuing their activities under the ETS, provided that it is done once. If deemed necessary, the Directorate of Climate Change will be authorized to extend this period, as specified in this paragraph, for up to 2 years from the expiration dates, in accordance with the decision of the Carbon Market Board.

Provisions regarding the imposition of an administrative monetary fine of 120,000 Turkish liras on project owners who do not register their projects in the carbon credit registration system within the time specified by the Directorate of Climate Change will start to be implemented with the announcement of the period determined by the Directorate on its official website.

The preparation and adaptation obligations regarding the legislation and planning tools specified in the proposal that has been accepted and enacted will be fulfilled by the relevant institutions and organizations by December 31, 2027, at the latest. The President will be authorized to extend this period for up to one year.

Local climate change action plans will be prepared by December 31, 2027, at the latest. The Ministry of Environment, Urbanization, and Climate Change will be authorized to extend this period for up to one year.

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