02.07.2025 22:51
The Climate Law Proposal discussed in the Grand National Assembly of Turkey was accepted and became law.
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The Climate Law Proposal discussed in the Grand National Assembly of Turkey (TBMM) has been accepted and enacted. According to the proposal, regulations will be made regarding the special revenues to be obtained and the budgeting of these revenues.
Special revenues will be recorded for the purposes determined, including "revenues obtained from greenhouse gas emission permits," "revenues from the sale of allocations in the primary market under the Emission Trading System (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 carbon credits authorized in international carbon markets," and "50% of the administrative fines imposed under the Law."
All amounts corresponding to these revenues will be foreseen as special appropriations in the budget of the Climate Change Presidency and will be utilized by the Presidency.
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 within the year 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 funds in the budget will be determined by a regulation to be issued by the Climate Change Presidency, upon the approval of the Ministry of Treasury and Finance and the Presidency of Strategy and Budget.
THE PRESIDENCY WILL BE AUTHORIZED TO ESTABLISH A REVOLVING CAPITAL ENTERPRISE
The Climate Change Presidency 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 Presidency, with the approval of the Presidency of Strategy and Budget and the Ministry of Treasury and Finance.
These revenues cannot be used for purposes other than green transformation and combating climate change. Up to 10% of these revenues can be used for activities carried out within the scope of just transition practices. In this context, the resources allocated as special appropriations to the Presidency budget can be transferred to the relevant administrations within the general budget as "special appropriations" for use exclusively in just transition practices, while transfers to other administrations under central government will be made within the framework of relevant legislation.
Transfers made to other administrations under this regulation will not be subject to the restrictions related to appropriation transfers regulated in the Central Government Budget Law for the relevant year, as per Article 21 of the Public Financial Management and Control Law. The President will be authorized to record the unspent portions of the amounts transferred to the administrations within the general budget to the budgets of the following year.
The use of supports for green transformation and combating climate change will also be regulated.
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 adaptation potential of climate-friendly investments with high potential, as well as the research, development, and sectoral technological transformation needs required for green growth, will be prioritized for support.
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 covered by the ETS, as well as public institutions and organizations, to utilize or promote the use of 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 the development of 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 amount by the 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, in consultation with the Presidency of Strategy and Budget, the Ministry of Treasury and Finance, and the relevant public institutions and organizations.
ADMINISTRATIVE FINES
Those who do not submit the verified greenhouse gas emission report within the specified time, in violation of the prohibitions or restrictions related to the monitoring of greenhouse gas emissions, will be fined between 500,000 Turkish liras and 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 calculated prudently based on the installed capacity of the facilities. These fines will be applied at double the rate for businesses covered by the ETS.
Those who use, import, trade, or market substances that deplete the ozone layer in violation of the procedures and principles determined by the relevant legislation will be fined 2.5 million Turkish liras, while those providing maintenance, repair, and service for products or equipment containing ozone-depleting substances will be fined 250,000 Turkish liras, and those who do not comply with the labeling provisions for products or equipment containing ozone-depleting substances will be fined 120,000 Turkish liras.
Those who use, trade, or market fluorinated greenhouse gases in violation of the procedures and principles, prohibitions, or restrictions will be fined 2.5 million Turkish liras and will not be issued a Hydrofluorocarbon Control Certificate for a period of 3 to 6 months.
Those who import hydrofluorocarbons in amounts exceeding the quota or without a 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 120,000 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 120,000 Turkish liras.
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Individuals and legal entities intervening in equipment containing fluorinated greenhouse gases or relying on the operation of these gases will be fined 120,000 Turkish Liras.
In case of failure to submit the verified greenhouse gas emission report on time, in violation of the procedures and principles related to the ETS, prohibitions, or restrictions, no transactions will be allowed except for the fulfillment of the delivery obligation based on the allocations 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 included in the ETS that operate without obtaining a greenhouse gas emission permit or continue their activities with expired or canceled 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 and 10 million Turkish Liras.
In the penalties to be applied to businesses without a verified greenhouse gas emission report, evaluation will be based on equivalent businesses with verified greenhouse gas emission reports 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 for 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 for each year on time for 3 consecutive years, their greenhouse gas emission permits will be canceled, and a new greenhouse gas emission permit will not be granted for 3 to 6 months.
Project owners who do not register their projects in the carbon credit registration system within the time specified by the Climate Change Authority will be fined 120,000 Turkish Liras. The administrative fine will not eliminate the obligation to register the project.
Individuals and private legal entities who fail to fulfill the obligations to provide information, documents, and data as stipulated in the regulation, or who make misleading statements, will be fined 170,000 Turkish Liras.
In the event of violations 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 reserved in the implementation of this provision.
THE AMOUNT OF ADMINISTRATIVE FINE SHALL NOT EXCEED 50 MILLION LIRAS
Administrative fines will be imposed at a rate of one time for the first repeat and two times for the second and subsequent repeats 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 said contrary activity, 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 the anticipated administrative fines. The amount of administrative fine to be applied for each act shall 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 stated 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 on behalf of the Authority in cooperation with the relevant units of the Climate Change 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 as stipulated in the regulation will belong to the Climate Change Authority.
THE AUTHORITY FOR SUPERVISION OF ENVIRONMENTAL LAW PROVISIONS
Regarding acts requiring the imposition of administrative sanctions, a report will be prepared by the authorized inspection personnel determined by the Climate Change Authority, specifying the qualifications and scope 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. Administrative sanction decisions can be challenged in administrative courts against the Authority. The filing of a lawsuit will not suspend the collection of the fine imposed by the Authority. The provisions of the Misdemeanor Law will apply to the collection procedure of administrative fines.
After the acceptance of 5 more articles of the proposal, the Deputy Speaker of the Grand National Assembly of Turkey, Celal Adan, adjourned the meeting. After the break, as the Commission did not take its place, Adan closed the meeting to reconvene tomorrow at 14:00.
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