1. Introduction
With the enactment of Climate Law No. 7552 (“the Law”), published in the Official Gazette No. 32951 dated 9 July 2025, Türkiye has formally initiated its green transition process. Secondary regulations to be issued under the Law will in time set out the procedures and principles for its implementation. In this first article of our green transition series, the legal framework underlying the Law will be examined to provide insight into its basis and essential parts such as national policies and international obligations.
Today, climate change has evolved beyond being merely an environmental issue, emerging as a global transformation that shapes new regulations and practices across key sectors such as trade, energy, finance, and law. The 1997 Kyoto Protocol first imposed binding emission reduction obligations on developed countries, and the 2015 Paris Agreement established a shared framework of global responsibility for all parties. The implementation of these objectives has been furthered through the European Union’s 2019 Green Deal and Regulation (EU) 2023/956 on the Carbon Border Adjustment Mechanism (“CBAM”), placing sustainable production at the center of international trade and making it a commercial imperative. Reflecting these developments, the Law enables Türkiye to meet its commitments under the Paris Agreement while aligning with the EU, thereby introducing the first comprehensive regulation that transforms international obligations into national enforcement measures.
1.1. Paris Agreement
The Paris Agreement constitutes not merely an environmental policy instrument for addressing climate change, but also a binding international framework that institutionalizes the allocation of global responsibility among its parties. With over 190 states currently party to the Agreement, it stands as the most widely participated instrument within international environmental law. Nationally Determined Contributions (NDCs), which outline the measures undertaken by each party under the Agreement to contribute to global climate action, have evolved beyond unilateral statements of intent and now constitute binding commitments under international law. Subjecting these commitments to systematic reporting and independent review transforms the Paris Agreement from a soft law regime into an operational international oversight mechanism.
At the global level, this framework enhances accountability not only for domestic climate policies but also in inter-state relations. The Global Stocktake, conducted every five years, enables monitoring of collective progress; while it does not create direct enforcement measures, it exerts considerable international pressure and generates diplomatic responsibility.
Türkiye joined the global climate regime by ratifying the Paris Agreement in 2021 and concurrently announced its 2053 Net Zero Emissions target. In alignment with this objective, Türkiye has taken comprehensive legislative steps, including the enactment of the Law, the establishment of a national emissions trading system, the expansion of renewable energy incentives, regulations governing electric vehicles in the transport sector, and the imposition of obligations on municipalities to prepare climate action plans.
1.2 European Green Deal
Following the Paris Agreement, the European Union introduced the European Green Deal (“the Deal”) in 2019, aligning global climate objectives with its economic vision and growth strategy. With the primary objective of achieving climate neutrality across Europe by 2050, the Deal extends beyond environmental policy, envisioning transformation across multiple sectors including energy, industry, agriculture, transport, trade, and finance. This transformation is reinforced through legally binding EU legislation and regulatory acts, establishing a strategic framework that shapes the global trade regime.
One of the Deal’s most significant instruments, the CBAM, requires the reporting of greenhouse gas emissions generated during the production of carbon-intensive goods imported into the EU and imposes corresponding financial obligations. As this regulation applies to all countries trading with Europe, regardless of EU membership, it effectively affects export conditions and competitive dynamics.
For Türkiye, the Green Deal renders the monitoring, reporting, and management of carbon emissions mandatory for exporting companies. Maintaining competitiveness in the EU market now depends not only on environmental awareness but also on compliance with legally prescribed reporting, verification, and carbon management obligations.
Ultimately, the European Green Deal constitutes a regulation that goes beyond an environmental vision, creating legal and commercial obligations that directly impact Türkiye’s foreign trade and investment relations. The Law serves as the primary legal framework for Türkiye to adapt to this new global regime, integrating the global responsibilities established by the Paris Agreement with the trade-related measures developed under the Green Deal into the national legal system.
2. The New Climate Law
The Law, which represents Türkiye’s first comprehensive national framework on addressing climate change, transforms the global responsibilities arising from the Paris Agreement and the commercial imperatives introduced by the Green Deal into binding domestic legislation. As a result, climate policies are no longer a discretionary “policy choice” for companies and public institutions but have evolved into a directly applicable field of law.
Within the scope of the climate policy established by the Law, the principles of equality, climate justice, precaution, participation, integration, sustainability, transparency, just transition, and progress are observed. In line with these principles, the measures to be adopted aim to ensure that the burden of climate action is shared fairly across all segments of society, while economic growth and industrialization processes serve not only sectoral needs but also the protection of natural resources and the preservation of ecosystem balance. Moreover, the Law ensures that workers in carbon-intensive sectors are supported by social protection mechanisms during the transition process, safeguarding the fair distribution of the social costs of the green transformation.
The Directorate-General for Climate Change within the Ministry of Environment, Urbanization and Climate Change has been designated as the central authority responsible for the Law’s implementation, while local coordination boards to be established in the provinces will be tasked with preparing local climate action plans. At the national level, the Law also provides for the determination of upper emission limits and the establishment of an Emissions Trading System (ETS) aligned with the “net zero” target, enabling the trading of emission allowances. This system aims to promote emission reduction through market-based mechanisms and economic incentives. The forthcoming ETS Regulation imposes obligations on businesses to measure, report, and manage their emissions through authorization mechanisms, and is expected to have a direct impact on cost structures, competitiveness, and export capacity.
3. Conclusion and Assessment
The Law aims not only to provide the legal foundation for Türkiye’s climate policies but also to establish the legal basis for economic and structural transformation. Green transition has ceased to be merely a policy choice and has been transformed into a binding legal regime that directly shapes trade, investment, and production relations. In this framework, it has become inevitable for companies to adopt strategic, data-driven, and comprehensive measures to ensure compliance with both national legislation and external regulations that directly affect trade, such as the European Union’s Carbon Border Adjustment Mechanism.
The ETS Regulation, currently in draft form, represents more than an environmental policy instrument for institutions in Türkiye; it constitutes a regulatory framework that determines the course of compliance processes in terms of strategic planning and competitive positioning. Accordingly, it is critical for companies to adopt a proactive strategy during the ETS compliance process and to prepare their legal, administrative, and financial infrastructures for this transition ahead of the pilot phase scheduled to commence in 2026. This is essential not only for making efforts for the planet, but also for fully meeting compliance obligations and maintaining their competitive advantage.
Detailed regulations concerning Türkiye’s Emissions Trading System — including the cap-and-trade principles, implementation timeline, sector-specific obligations, and potential economic impacts — will be addressed in the subsequent articles of our green transition series.