Turkey's Green Taxonomy Regulation Officially Published
The new regulation, prepared to evaluate the environmental sustainability of investments and prevent the risk of greenwashing, has entered into force.
Prepared within the scope of the Green Deal Action Plan published in 2021, the Turkey Green Taxonomy Regulation has entered into force, introducing a new common language and evaluation criteria to determine the environmental sustainability of investments.
Purpose and Scope of the Regulation
The new regulation will assume a guiding role in determining which investments are environmentally sustainable.
While enabling industrialists to secure a larger share from international green financing, it will increase transparency in the market and prevent the risk of greenwashing.
Six Core Environmental Objectives
Within the scope of the regulation, targets for the reduction of greenhouse gas emissions and adaptation to climate change have been established for economic activities.
Additionally, objectives have been set for the protection of water resources, transition to a circular economy, prevention of pollution, and restoration of biodiversity.
Three General Conditions for Alignment
For economic activities to be considered aligned, the conditions of making a substantial contribution, doing no significant harm, and minimum social safeguards must be met simultaneously.
Within this framework, it is required to contribute to at least one of the six established objectives while not harming the others and complying with social standards.
Sectors and Technical Screening Criteria
The Technical Screening Criteria have been organized to consist of a total of 16 sectors and 137 economic activities.
In accordance with Turkey's structure, the agriculture and tourism sectors have also been included in the process, differing from international standards.
Reporting and Financial Sector Obligations
While reporting is voluntary for the real sector, the financial sector will be subject to mandatory reporting starting from January 1, 2029.
Related procedures and principles will be coordinated by institutions such as the Climate Change Directorate, alongside the CMB, BRSA, and SEDDK.