The Climate Law is not merely an environmental regulation; it is a historic turning point that redefines the rules of production, trade, and finance. For Turkish industry, this process opens the door to new opportunities as well as new costs. Adapting to nature is now a prerequisite for competition and development.
Over the past February and April, our country witnessed one of its most intense debates on environmental issues. The “Climate Law Proposal,” submitted to the Grand National Assembly of Turkey (TBMM) on February 20, 2025, was accepted by the Environment Committee on February 26 and began to be discussed in the TBMM General Assembly on April 8. During this process, some criticisms regarding the content of the proposal came to the fore. In particular, the absence of policies for phasing out fossil fuels in the text, the preparation of the process by bureaucrats, and the lack of consultation with non-governmental organizations and academia drew attention. Furthermore, the focus on the emissions trading system and the discussion that the operation of this market by the Energy Market Regulatory Authority (EPIAŞ) under the Ministry of Energy might be contrary to impartiality were debated. Alongside these, different views were also expressed regarding environmental issues not directly related to the Climate Law. Following the adoption of four articles in the TBMM General Assembly, the discussions were paused on April 14. On July 9, 2025, the Climate Law, which will initiate a new era in Turkey's climate policies, was published in the Official Gazette and entered into force.
Basic framework of the Law
The Climate Law serves as a comprehensive umbrella regulation that has been long-awaited to address climate change. Rising temperatures, changing precipitation regimes, and especially the imminent risk of water scarcity once again reveal how vital this regulation is. While the President is designated as the executor of the Law, the coordination task has been given to the Climate Change Presidency. A Carbon Market Board will be established under the chairmanship of the Minister of Environment, Urbanization and Climate Change. At the same time, national allocation planning will be carried out and allocations will be distributed within the scope of the Emissions Trading System (ETS) to be established by the Presidency. Energy Markets Operation Inc. (EPIAŞ) will undertake the operation of the ETS market; and an Advisory Board will operate within the TOBB Presidency to evaluate strategic issues. A Greenhouse Gas Emission Permit is becoming mandatory for enterprises that cause greenhouse gas emissions. The MRV system for monitoring, reporting, and verifying emissions is being established within a legal framework. Locally, Provincial Climate Change Boards will be established under the coordination of governorships, and municipalities will prepare Local Climate Action Plans with the participation of all institutions. The law also defines carbon credit production and offsetting processes, and envisages directing ETS revenues to climate finance and sustainability tools. Green investments will be classified with the Turkey Green Taxonomy Regulation; a Turkey Carbon Border Adjustment Mechanism may be established to cover the embedded emissions of imported goods. With the announcement of the carbon credit registry system, penalty applications will begin.
In terms of the industry and plastics sector
The Ministry of Environment, Urbanization and Climate Change is rapidly continuing its work on the secondary regulations of the law. The drafts of the Turkey Emissions Trading System Regulation, Turkey Green Taxonomy Regulation, Carbon Crediting and Offsetting Regulation, and Local Climate Change Action Plans (YİDEP) have already been opened for public opinion. The most critical point for the industry is that carbon costs will now be a new and permanent item in company budgets. Although the sectors covered in the first stage are limited, all businesses, including SMEs, will be part of this system indirectly due to the intertwined nature of production chains. Especially companies that export will have to report their carbon values transparently through the supply chain and integrate into this new trade order. This situation is even more pronounced for the plastics sector. This is because the sector is at the center of climate policies due to both its carbon-intensive production processes and its recycling potential. The European Union's Carbon Border Adjustment Mechanism (CBAM) implementation will directly affect plastic industrialists, especially those working for export. Businesses that increase their recycling capacity, raise energy efficiency, and perform carbon reporting transparently will not only be environmentally sensitive but will also strengthen their competitiveness and access to finance.
Conclusion
This assessment, which I have addressed by also utilizing the report prepared by Ms. Şükran Nurlu, environmental consultant of the Aegean Region Chamber of Industry (EBSO) Board of Directors, is a turning point that aims not only to protect the environment but also to redefine the rules of trade. From now on, activities in harmony with nature are not just a social responsibility; they have become an indispensable commercial necessity for the continuity and competitiveness of our companies. The plastics sector's early grasping of this transformation will enable it to take a pioneering role in future industrial policies. The Climate Law and what it brings should henceforth be discussed more closely, examined, and systematically conveyed to industrialists through chambers and professional associations.
This content has been translated using artificial intelligence technology.