Turkey’s new climate law reflects the reality that environmental policy and trade strategy have become inseparable in today’s global economy. Capital Markets Board chief specialist Yavuz Akbulak explores how the legislation creates legal foundations for emissions reduction and climate adaptation while strategically positioning Turkey to navigate EU carbon border regulations and maintain access to markets that represent over 40% of its exports.
As nations worldwide implement climate legislation to meet Paris Agreement commitments, Turkey has enacted its first comprehensive climate law, a development that reflects both environmental imperatives and strategic economic positioning in an increasingly carbon-conscious global marketplace.
Turkey is among the countries expected to be most affected by climate change due to its Mediterranean basin location and status as a developing country. The new law, which entered into force in July 2025, establishes legal frameworks for achieving Turkey’s 2053 net-zero emissions target while addressing the growing need for climate adaptation and mitigation strategies.
Inside the new law
Climate change is a global threat and is increasingly showing its impact all over the world and in Turkey, changing the habits and priorities of countries in economic, social and legal terms. Climate change is gaining a new dimension with new concepts and new understandings.
Turkey is among the countries that will be most affected by climate change due to its location in the Mediterranean basin, its geographical location and being a developing country. For this reason, transitioning to a low-carbon economy, ensuring green transformation in all sectors that cause greenhouse gas emissions and increasing the capacity to combat climate change and adaptation are important. These are urgent matters due to climate change-related impacts like drought, disaster, food security and extreme weather events.
In a world that is changing and transforming due to climate change, the fact that this transformation also offers opportunities and can create positive effects in some sectors should not be ignored. Turkey became a party to the UN Framework Convention on Climate Change (UNFCCC) in 2004 and to the Paris Agreement in 2021.
Within the scope of these developments, Turkey’s 2053 net-zero emission target was established, as was the climate change presidency under the Ministry of Environment, Urbanization and Climate Change. This office was established to carry out national and international studies and necessary negotiations and ensure coordination with other institutions and organizations regarding plans, policies and strategies for green development.
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Read moreDetailsFollowing the establishment of the climate change presidency, Turkey developed its nationally determined commitment (NDC) under the Paris Agreement, along with climate change mitigation and adaptation strategies and action plans that included concrete targets. However, a comprehensive climate law was needed to monitor these initiatives, ensure societal adoption, improve implementation, transpose international agreements into domestic law and — most importantly — establish a legal foundation for climate action.
In this context, the climate law draft was submitted to the Turkish Grand National Assembly on Feb. 20, 2025, became law on July 2, entering into force by being published in the official gazette on July 9, 2025.
Under the law:
- There are responsibilities and obligations of all public institutions and organizations and real and legal persons in cooperation regarding the climate change that we face, regardless of any distinction such as geographical area or sector.
- In order to achieve the 2053 net-zero emission target, greenhouse gas emission reduction and climate change adaptation activities are determined and public institutions and organizations are given responsibilities to carry out their own activities in line with the actions in the NDCs and strategy documents. In this context:
- Local climate change action plans will be prepared by determining the needs and risks of the local area, in a holistic and cooperative manner, including all local administrations.
- At the same time, the aim is to increase the use of renewable energy and clean technologies, in line with the circular economy approach, and to protect and expand the use of sinks and protected areas.
- The aim is to implement and expand a zero-waste system.
- Provisions are being established regarding mitigating the impacts of climate change on ecosystems and biodiversity and taking measures for sustainable ecosystem management.
- In addition to the aforementioned regulations, regulations regarding the emissions trading system (ETS) and carbon credits, which will be implemented in Turkey, are being made mandatory for businesses within the scope of the ETS, making it mandatory for businesses to obtain greenhouse gas emission permits.
- The Ministry of Trade envisions establishing a carbon border adjustment mechanism (CBAM) in Turkey.
- The legal basis for climate finance, climate change combat incentives and Turkey green taxonomy studies is being established for the determination of green investments, which are one of the important milestones in the fight against climate change. At the same time, the goal is to reduce the risks created by climate change and to effectively benefit from the positive effects that emerge.
- The law adopts social and environmental sustainability as a basic principle. In this context, the protection and sustainable management of natural resources are encouraged, and the creation of education and awareness programs that will increase the capacity of society to adapt to climate change is emphasized. The responsibilities of local governments and the private sector regarding combating climate change are made clearer, and all stakeholders are enabled to act in cooperation. Thus, the law aims to increase Turkey’s resistance to climate change, evaluate economic growth opportunities and prepare society for the future. The law also defines the authorities and revenues of the climate change presidency in order to ensure coordination in fighting climate change and to carry out the necessary work and procedures.
- The law establishes the legal foundation for greenhouse gas emission reduction and climate change adaptation activities. It creates planning and implementation tools along with institutional frameworks to strengthen Turkey’s legal infrastructure. The legislation emphasizes that combating climate change requires global cooperation and aligns with Turkey’s green growth objectives and 2053 net-zero emissions target while fulfilling the country’s international obligations.
Conclusion
Today, global competition operates simultaneously on many different axes. One moment, a fierce battle in international trade is followed by the pains of rebuilding supply chains. Another moment, as steps are being taken to expand global trade in goods, the green transformation and climate regulations are creating a new competitive landscape.
The rules of the game are constantly evolving, and the axes of cooperation between countries are constantly shifting. In the new world order, economic size and competitiveness are defined not only by economic variables like growth rates and inflation but also by strategic factors like the ability to reduce carbon emissions, possessing sustainable production infrastructure and access to green technology.
At a time when many countries, especially those in the European Union, to which Turkey exports more than 40% of its products, are redefining production and trade standards with new policy tools like border carbon regulation, Turkey’s enactment of its first climate law is not only an environmental choice but also a strategic economic move. This step is a historic threshold in terms of strengthening Turkey’s position in global supply chains, increasing its access to green financing resources and aligning long-term green development goals with environmental responsibility.
It is precisely at this point that we must consider Turkey’s first climate law not only as an environmental policy but also as an industrial and export policy. Thanks to this law, Turkey has initiated a process that will transform carbon management from a burden into an opportunity. In particular, the establishment of the emissions trading system will ensure that carbon costs remain within the country and these resources are channeled toward low-carbon technologies, clean production and regional development programs. This perspective will enable Turkey to both reduce its carbon footprint in exports and eliminate trade barriers, while also becoming a center of attraction for green investments.
Yavuz Akbulak is chief specialist of the Capital Markets Board of Turkey, the regulatory and supervisory authority responsible for the Turkish securities markets. 
