Recent Interim ESG Developments

30.06.2025 İlayda Salkım

Introduction

As of 2025, the field of Environmental, Social, and Governance (ESG) has witnessed substantial progress both globally and within Türkiye. Driven by the objectives of sustainable development, there is a growing expectation for private sector actors to mitigate their environmental impact, uphold social responsibility, and enhance corporate transparency. ESG criteria now extend beyond their traditional role of guiding investment decisions; they have evolved into a comprehensive framework shaping corporate risk management, compliance mechanisms, and strategic planning processes. In this sense, ESG introduces a more integrated and multidimensional approach, surpassing the conventional boundaries of environmental law. This article provides an overview of key ESG-related legislative developments and traditional environmental regulations enacted or published in Türkiye throughout 2025. It also examines the potential implications of these legal instruments, particularly for the private sector.

% 0

Climate Law

Purpose and Scope

Adopted in line with the vision of green growth and the 2053 Net Zero Emission Target, the Climate Law No. 7552 (“Climate Law”) entered into force through publication in the Official Gazette dated 09.07.2025 and numbered 32951. In accordance with the commitments undertaken under the United Nations Framework Convention on Climate Change and the Paris Agreement, to which Türkiye became a party in 2021, this legislation has provided a domestic legal basis for global commitments concerning climate change mitigation. The Climate Law sets forth a comprehensive legal framework concerning (i) activities for combating climate change, (ii) the planning and implementation tools associated with these activities, (iii) carbon pricing mechanisms, (iv) the duties and powers of the Climate Change Authority (“Authority”), (v) the use of revenues and support schemes, and (vi) sanctions.

Core Provisions

The Climate Law introduces a series of obligations applicable to public institutions as well as all private sector actors, particularly those operating in high-emission industries.

Reduction of Greenhouse Gas Emissions: The reduction of greenhouse gas emissions is mandated in line with the National Contribution Declaration^[1], the net-zero emission target, and relevant strategic documents. Public institutions and private entities are obliged to implement sector-specific mitigation measures identified within their respective areas of competence, develop relevant plans, and update them as necessary. Mandatory measures span a wide range of areas, including energy, water, and raw material efficiency; prevention of pollution at the source; use of renewable energy; reduction of carbon footprint; adoption of alternative clean or low-carbon fuels and raw materials; electrification; and development and deployment of clean technologies. In addition, public authorities are tasked with adopting measures to protect and enhance carbon sinks.

Climate Change Adaptation Activities: Public institutions are required to conduct national and local-level risk and vulnerability assessments to adapt to climate change and to integrate the results into planning and investment processes. Effective management of water resources, protection of ecosystems, combating desertification and erosion, and ensuring the sustainability of carbon sink areas will be prioritized. Climate-resilient agricultural practices and nature-based solutions will be promoted, while integrated early warning and risk management systems will be developed for climate-related disasters.

Emissions Trading System (ETS): The Climate Law foresees the establishment of an Emissions Trading System (ETS) that will impose a cap on the country’s total greenhouse gas emissions and regulate the trading of such emissions within Türkiye. In this regard, the allocation and limitation of emission allowances will be made possible. The law stipulates that operators emitting greenhouse gases must obtain a permit from the Climate Change Authority to carry out their activities under the ETS. The period prior to the full implementation of the ETS is defined as a pilot phase, during which lower administrative fines are envisaged.

Voluntary Carbon Markets and Offsetting: The use of carbon credits to offset part of the allowance obligations under the ETS has been enabled. A national carbon crediting and offsetting system is to be established to generate carbon credits for use in offsetting transactions by companies that are either subject to ETS obligations or voluntarily participate in carbon markets. The principles of this system will be determined by the Climate Change Authority.

Planning and Implementation Instruments: The Climate Law mandates the integration of climate change mitigation into all planning processes and requires the preparation of national and local-level strategies and action plans. The legislation also introduces financial and technological instruments to support climate-related investments. Implementation is further reinforced through provisions concerning climate finance, the development of Türkiye’s Green Taxonomy, green investment incentives, carbon border measures, the dissemination of clean technologies, and the cultivation of a green workforce. Additionally, in parallel with the European Union’s CBAM, the Climate Law allows for the establishment of a national Carbon Border Adjustment Mechanism (CBAM) to address embedded greenhouse gas emissions in imported goods, with the details of the system to be determined by the Ministry of Trade.

Use of Support Mechanisms: The Climate Law prioritizes support for investments with high potential for greenhouse gas mitigation and climate adaptation, as well as activities contributing to the green transition. Accordingly, both public and private sector actors are expected to be incentivized through appropriate financial mechanisms that promote green transformation and a just transition.

Administrative Fines: While the Climate Law sets out the core structure and strategic framework for combating climate change, the details concerning the related plans, systems, and institutions are expected to be addressed through secondary legislation. In the event of non-compliance with the obligations outlined above, administrative fines of up to TRY 50,000,000 may be imposed.

Regulation on the Management of Industrial Emissions

Purpose and Scope

Published in the Official Gazette dated 14.01.2025 and numbered 32782, the Regulation on the Management of Industrial Emissions sets forth the administrative and technical procedures and principles aimed at promoting green transformation, a circular economy, and decarbonization in industry. Its objectives include preventing and reducing industrial emissions and waste generation at the source, as well as ensuring the efficient use of resources in relation to pollutants affecting air, water, soil, noise, and odor. The Regulation, which is based on the EU Industrial Emissions Directive (Directive 2010/75/EU), complements traditional environmental legislation and categorizes the companies it covers according to their sector and production capacity or output, as listed in the annexes. In summary, it applies to facilities operating in sectors such as energy, metals, minerals, chemicals, waste management, textiles, automotive, leather, paper, food, and livestock.

Core Provisions

In addition to operators, the Regulation defines the duties and responsibilities of the Ministry of Environment, Urbanization and Climate Change (“Ministry”), Provincial Directorates, and Third-Party Verification Bodies. The Regulation adopts an integrated environmental permitting approach. It also introduces the Green Transformation in Industry (“GTI”) Certificate scheme as a tool to incentivize the transition of industrial facilities to environmentally friendly production practices.

Obligations of Operators (art. 8): Operators of facilities conducting activities listed under Annex-I and Annex-II are required to register with the electronic system in accordance with the sector-specific calendar set by the Ministry and to update their information by April 1st of each year. Operators wishing to obtain the GTI Certificate must submit the required documentation for this certificate simultaneously with their application for environmental permits and licenses. In other words, obtaining a GTI Certificate is a prerequisite for completing the environmental permitting and licensing processes.

Facilities holding a GTI Certificate are obliged to:

operate in compliance with the terms of the certificate,
notify the Ministry and update the certificate within 30 days of renewing their environmental permit/license,
and take necessary measures to prevent and mitigate environmental accidents. Furthermore, facilities are responsible for complying with the Best Available Techniques – Industrial Emission Limits (BAT-IEL)^[2] and the Emission Limit Value (ELV), and/or achieving the associated green transformation.

General Principles of the GTI Certificate (Art. 9 et seq.): The GTI Certificate provides for a classification system ranging from A to F, based on a facility’s compliance with BAT and BAT-IEL, and mandates planning to ensure at least a D-level classification. The GTI Certificate reflects a facility’s environmental performance and is considered in the evaluation of financial support mechanisms such as incentives, grants, and loans; however, it does not exempt the facility from other legal obligations. The Ministry may impose stricter environmental standards, grant temporary exemptions, and determine the procedural rules for certification where deemed necessary.

Sanctions: In the event of non-compliance with the provisions of the Regulation, administrative sanctions outlined in Article 20 of the Environmental Law No. 2872 shall be applied. The Regulation also provides transitional obligations for companies and activities falling within its scope.

Transitional Period: Facilities that were operational on the date of entry into force of the Regulation, or that had submitted an application under the environmental impact assessment legislation, must apply to the Ministry within 90 days of the issuance of their environmental permit and license, along with the necessary documentation. These facilities are required to obtain a GTI Certificate with a minimum classification of F by 31.12.2028 and a minimum classification of D by 31.12.2030.

The Regulation on the Management of Industrial Emissions will enter into force on 01.12.2025, and ensuring compliance with this regulation, which covers a large number of facilities, represents a significant and concrete step toward realizing environmental sustainability objectives.

Communiqué Amending the Communiqué on the Implementation Procedures and Principles of the Green Transformation Support Program

The Communiqué on the Amendment to the Communiqué on the Implementation Procedures and Principles of the Green Transformation Support Program, regarding the support of investments aimed at resource-efficient and low-carbon production contributing to climate and sustainability goals, was published in the Official Gazette dated 9 July 2025 and numbered 32951. Through this amendment, the program was renamed as the “Green Transformation Program.” The Communiqué also introduced several notable updates: roadmap reports prepared on a facility basis may now be submitted directly by the investor; in cases where an ongoing application or an active incentive certificate exists for the same investment site, new applications will not be accepted; and applicants are granted a second opportunity to rectify formal deficiencies in their submissions. Moreover, electricity generation facilities based on solar and wind energy have been included within the scope of support in line with project integrity requirements, and several updates have been made to the project monitoring process.

The revised framework reinforces the goals of the Climate Law by fostering green investment processes and supporting sustainable project implementation.

The Regulation Amending the Environmental Impact Assessment Regulation

The Regulation Amending the Environmental Impact Assessment Regulation was published in the Official Gazette dated 26 June 2025 and numbered 32938, introducing a series of amendments to the Environmental Impact Assessment Regulation (“EIA Regulation”) originally published in the Official Gazette dated 29 July 2022. These amendments are based on Council of State decisions that ordered the suspension of certain provisions of the EIA Regulation.

Transparency in Public Notices: The amendment revised the definition of “public notice by posting.” Under the previous version, the competent authority had discretion to choose among several specified locations—such as the provincial directorate, district governorate, or local headman’s office—within the residential area of those potentially affected by the EIA project. However, pursuant to the decision of the Council of State’s Administrative Chambers Board^[3], this discretionary power has been eliminated. The revised regulation now requires public notices to be posted in all of the specified locations. In addition, the term previously referred to as the “EIA study area” has been replaced with “EIA project area.”^[4] .

Furthermore, while the previous regulation provided that announcements related to the EIA process could be published on the websites of the Ministry and provincial directorates, or disseminated through methods such as public posting and announcements, the amendment now explicitly requires that, in addition to website publication, physical public posting (e.g., on notice boards) must also be carried out.

Changes to the List of Projects Subject to EIA and Preliminary Examination and Assessment of Environmental Impacts: Prior to the amendment, wind power plants were subject to EIA regardless of the number of turbines. With the revision, the scope has been narrowed to include only (i) wind power plants with 15 or more turbines and (ii) offshore wind power plants. Similarly, prior to the amendment, solar power plants with a project area of 20 hectares or more or with an installed capacity of 10 MWm or more were subject to EIA. Under the new regulation, solar power plants with a project area smaller than 25 hectares have been excluded from the scope. Most of the amendments made to the list of projects subject to preliminary examination and assessment of environmental impacts also aim to narrow the scope. Although these changes do not constitute ESG-specific regulation per se, they are rooted in traditional environmental law and may raise certain uncertainties in terms of environmental protection and sustainability.

Other Developments

Among other noteworthy recent developments in the ESG domain is the addition of paragraph “T” to Türkiye Sustainability Reporting Standard 1 (“TSRS 1”) by the Public Oversight Authority, as announced in a public notice dated 15 May 2025. With this amendment, it has been stipulated that sustainability-related financial disclosures must be presented under the title “TSRS-Compliant Sustainability Report” as part of the entity’s general purpose financial reporting.

In addition, on 30 April 2025, the Ministry of Foreign Affairs announced that an agreement had been reached under the International Maritime Organization (IMO) on a new global framework aimed at reducing global shipping emissions to net zero by 2050^[5]. The agreement includes interim targets, a global certification scheme to promote clean fuels, and a carbon pricing mechanism scheduled to enter into force in 2028. In parallel with these developments, it has been observed that the Ministry has recently intensified environmental inspections and imposed various administrative sanctions.

Future Agenda

According to official announcements on the Ministry’s website^[6], work is ongoing on the Regulation on the Emissions Trading System and the Regulation on the Green Taxonomy, both of which are envisioned under the Climate Law and the Regulation on the Management of Industrial Emissions. It has also been announced that draft communiqués on Best Available Techniques (BAT) have been opened for institutional consultation and will be published in the Official Gazette following the evaluation process. To this end, the second half of 2025 is expected to be intense and dynamic in terms of alignment with EU regulations.

Conclusion

In line with the commitments undertaken under the Paris Agreement, tangible steps have begun to be taken within Turkish law, primarily through the enactment of the Climate Law and other related regulations. In the upcoming period, the monitoring of forthcoming secondary legislation and ensuring compliance therewith will be of critical importance for clarifying the obligations of relevant stakeholders and establishing the necessary institutional frameworks.

References

It refers to the document prepared periodically under the coordination of the Authority, in cooperation with the relevant institutions and organizations, in accordance with international agreements and standards, and submitted to the Secretariat of the United Nations Framework Convention on Climate Change, outlining the targets and commitments for greenhouse gas emission reduction and climate change adaptation.
Best Available Techniques (BAT) refer to the most effective, advanced, applicable, and clean production techniques that are internationally recognized for ensuring technological and economic sustainability in the highest level of integrated environmental protection. These techniques are published by the Ministry and constitute the basis for the requirements of the Green Transformation in Industry (GTI) Certificate. The associated emission level (BAT-AEL) refers to the range of emission levels, expressed as an average value over a specified period and under defined reference conditions, that can be achieved under normal operating conditions using BAT.
Decision of the 6th Chamber of the Council of State, dated 16 February 2023 and numbered E.2022/7584.
Decision of the Board of Administrative Chambers of the Council of State, dated 26 October 2023 and numbered Appeal Concerning the Motion for Stay of Execution No.: 2023/796.
For the announcement of the Ministry of Foreign Affairs, Directorate for EU Affairs, dated 30 April 2025, please see: https://www.ab.gov.tr/uluslararasi-denizcilik-orgutunde-imo-11-nisan-2025-tarihinde-kuresel-deniz-tasimaciligi-sektorunun-sera-gazi-emisyonlar_54001.html.
For the announcements of the Ministry dated 3 July 2025 and 30 June 2025, please see: https://iklim.gov.tr/turkiyenin-ilk-iklim-kanunu-tbmm-genel-kurulu-nda-kabul-edilerek-yasalasti-haber-4508; https://csb.gov.tr/cevre-sehircilik-ve-iklim-degisikligi-bakanligi-yesil-donusumun-standartlarini-belirliyor-bakanlik-faaliyetleri-41708.

All rights of this article are reserved. This article may not be used, reproduced, copied, published, distributed, or otherwise disseminated without quotation or Erdem & Erdem Law Firm's written consent. Any content created without citing the resource or Erdem & Erdem Law Firm’s written consent is regularly tracked, and legal action will be taken in case of violation.

See All Contents