Turkey Green Taxonomy Regulation Published

Prepared by the Climate Change Directorate under the Ministry of Environment, Urbanization and Climate Change, the Turkey Green Taxonomy Regulation has entered into force after being published in the Official Gazette. This new regulation aims to facilitate access to green finance and prevent greenwashing risks.

Objective and Scope of the Regulation

The Turkey Green Taxonomy Regulation has been prepared to support economic activities aligned with sustainable development goals and to encourage the flow of finance into investments. Prepared by the Climate Change Directorate, the regulation aims to increase market transparency and prevent greenwashing risks.

Unlike the European Union Taxonomy, agriculture and tourism sectors have also been included in Turkey's Green Taxonomy due to the country's specific structure. The regulation covers a total of 16 sectors and 137 economic activities.

Six Environmental Objectives

Six fundamental environmental objectives determined for economic activities have been officially defined. These objectives include the reduction of greenhouse gas emissions and adaptation to climate change.

Additionally, objectives for the sustainable use of water and marine resources, transition to a circular economy, prevention of pollution, and protection of biodiversity and ecosystems have been established.

Three Conditions for Compliance

For an economic activity to be considered compliant with the green taxonomy, it must meet three simultaneous conditions. As the first condition, it is mandatory to make a substantial contribution to at least one of the six environmental objectives.

The second condition is not doing significant harm to any of the other environmental objectives, and the third condition is full compliance with minimum social safeguard measures and standards.

Reporting and the Financial Sector

There is no legal obligation in the reporting process for the real sector, and the process has been structured on a voluntary basis. Companies requesting green finance from financial institutions such as banks and insurance companies will be required to report.

It has been decided that mandatory reporting for the financial sector will begin on January 1, 2029.