The Climate Law No. 7552, which was adopted by the Grand National Assembly of Turkey on July 2, 2025, and entered into force upon its publication in the Official Gazette dated July 9, 2025, stands as the first comprehensive and legally binding regulation in Turkey addressing the fight against climate change.
Adopted as a framework law, the regulation introduces a multidimensional approach centered on combating climate change, adapting to its impacts, promoting green transformation, and achieving sustainable development goals — all in line with Türkiye’s 2053 net-zero emissions target. The law imposes a wide range of obligations on both the public and private sectors and restructures the institutional and sectoral frameworks responsible for the coordination and implementation of climate policies.
The Climate Change Directorate has been established and entrusted with a broad range of responsibilities, including the reduction of greenhouse gas emissions, regulation of carbon markets, preparation of strategies and action plans, data collection, and inter-institutional coordination. The Directorate will monitor annual progress and will have the authority to impose sanctions when necessary.
The Emissions Trading System (“ETS") has been provided with a legal basis under the Climate Law. Companies operating within the scope of the ETS are now required to obtain greenhouse gas emission permits from the Climate Change Directorate. National allocation plans and market stability mechanisms are envisaged for these companies. The ETS market will be operated by the Energy Markets Operation Corporation (EPİAŞ). Allocation obligations may be partially fulfilled through the use of carbon credits; to this end, a national carbon crediting and offsetting system will be established.
Strategy and action plans will be developed at both national and local levels, and Climate Change Coordination Boards will be established in each province. The plans and strategies to be prepared by all public institutions and private sector stakeholders must align with the high-level policy documents issued by the Climate Change Directorate.
As part of its climate finance framework, the Law aims to promote the development of green and sustainable capital market instruments, banking finance solutions, and insurance systems. It also introduces incentive mechanisms to support the circular economy and recycling efforts. Furthermore, the Law provides for the possible establishment of a Border Carbon Adjustment Mechanism to address embedded greenhouse gas emissions in imported products.
In cases of non-compliance with the obligations set forth under the Law, sanctions such as substantial administrative fines, suspension of operations, and revocation of permits may be imposed. Penalties applicable to entities covered by the ETS may be doubled. Graduated sanctions are also envisaged for offenses such as failure to provide information and documents or making misleading declarations.
NAZALI TAX & LEGAL