A NEW ERA ON THE WAY TO GREEN TRANSFORMATION: LAW NO. 7552 ON CLIMATE
LAW NO. 7552 ON CLIMATE
The Law No. 7552 on Climate (“Law”), which entered into force with the Official Gazette No. 32951 on 9 July 2025, is Türkiye's first comprehensive framework legislation prepared in line with the green transformation and net zero emission targets. The Law aims to reduce greenhouse gas emissions and ensure adaptation to climate change by providing the legal infrastructure of these processes. The scope of the Law is not limited to public institutions and organisations; it explicitly stipulates that both real persons and legal entities are also obliged to comply with and implement the measures and regulations adapted in accordance with the Law in a timely manner. This framework legislation refers to universal principles of environmental law such as ‘equality’, ‘climate justice’, ‘sustainability’, ‘participation’. It also sets out the fundamentals of the complaince process, including that the Ministry of Environment, Urbanisation and Climate Change (“Ministry”) and the Directorate of Climate Change (“Directorate”) shall lead the implementation of the compliance process.
Climate Change Mitigation and Adaption Activities
The main focus of the Law is built upon two pillars: the reduction of greenhouse gas emissions and adaption to climate change. These two pillars are supported by the Nationally Determined Contribution, the net zero emission target, and the plans of strategy and actions prepared by the Directorate, in cooperation with the Ministry and other relevant institutions and organizations. In relation to the reduction of greenhouse gas emissions, the Law imposes obligations on institutions and organisations as follows:
* increase energy, water and raw material efficiency,
* prevent pollution at its source,
* expand the use of renewable energy,
* reduce the carbon footprint of products, enterprises, institutions and organisations,
* promote the use of alternative clean or law-carbon fuels and raw materials,
* expand electrification,
* Take mitigation measures such as developing and adopting clean technologies, and
* implement a zero waste system in accordance with the principles of equitable transition
Moreover, the Law introduces obligations regarding climate adaption activities. Companies must carry out adaption measures to prevent, minimise, or benefit from the actual or potential risks, damages, and losses associated with climate change.
Planning and Implementation Tools
Companies should shape their investment and operational plans in line with the plans published by the Directorate for combating climate change within the scope of green growth vision and net zero emission target. In addition to national action plans, other planning tools to be considered are local action plans, sectoral impact and risk analyses. It is vital that companies direct their decision-making processes in alignment with these planning tools.
In terms of implementation tools, various financial instruments such as climate financing, green and sustainable capital market instruments are encouraged for companies. Furthermore, the Ministry encourages works for waste reuse. In addition, clean technologies such as carbon capture and hydrogen technology are supported; and, it is aimed to increase public awareness and consciousness on combating climate change through capacity building activities.
Carbon Pricing
One of the key components of the Law’s climate change strategy is the introduction of carbon pricing, integrating environmental costs into the economic system. Accordingly, ‘Emission Trading System’ (“ETS”) will be established by the Directorate. The ETS will be operated by Energy Exchange Istanbul (Enerji Piyasaları İşletme Anonim Şirketi), designated as the market operator. Key provisions related to ETS include:
* Enterprises engaging in activities that directly cause greenhouse gas emissions, as defined in the relevant regulations, are required to obtain a greenhouse gas emission permit from the Directorate.
* The greenhouse gas emission permit is updated by the Directorate as a result of changes that occur or may be cancelled if the necessary conditions are not met.
* Enterprises subject to the ETS must annually submit emission allowances equivalent to their verified greenhouse gas emissions.
Another article regulates voluntary carbon markets and offsetting practices. Pursuant to the relevant provision of the Law, enterprises that are not covered by the ETS may voluntarily be included in the ETS. Enterprises voluntarily included in the system will be under obligation and will be able to purchase carbon credits to offset their emissions.
SanctionsThe Directorate is authorised to supervise the acts which are subject to administrative sanctions for breach of the obligations under the Law. In this respect, the Directorate is authorised to request the information, documents and data it deems necessary for the implementation of the Law directly from the relevant institutions and organisations. The organisations from which information and documents are requested are obliged to share them with the Directorate within the specified period and free of charge.
Administrative fines of various amounts are stipulated for non-compliance. These violations are mainly as follows:
* breaches of rules or restrictions regarding the monitoring of greenhouse gas emissions,
* breaches of regulations on ozone-depleting substances,
* breaches concerning fluorinated greenhouse gases,
* breaches of the procedures and limitations relating to the ETS.
In the event of non-compliance, the Ministry grants the violating party a one-time rectification period of up to one year. If the violation persists beyond this period, the Ministry may partially or completely suspend the activity until compliance is ensured. Finally, the relevant institutions and organisations can file a lawsuit against the Directorate in the administrative judiciary regarding the administrative sanction decisions.
Transitional Period
According to the Law, a pilot phase will be conducted before the full implementation of the ETS. The scope, duration, and procedures will be determined by the Carbon Market Board. A notable advantage of the pilot phase for institutions and organizations is that any administrative fines for non-compliance with the Law during the phase will be reduced by 80%.
In addition, within 3 years from the date of entry into force of the Law, all enterprises falling within the scope of the ETS are obliged to obtain a greenhouse gas emission permit. During this three-year period, the emission permits of the relevant enterprises shall be deemed to have been granted on a one-time basis, enabling them to continue their operations without interruption. If deemed necessary, this period can be extended up to 2 years through the decision of the Carbon Market Board.
Conclusion
The Climate Law entered into force on 9 July 2025, marking the beginning of a new era in Türkiye’s pursuit of green growth and net-zero emissions. From this date forward, all public and private entities subject to the Law must duly comply with the prescribed obligations. In addition to these obligations, the Law also introduces incentives and support mechanisms that may offer a competitive advantage for companies. Therefore, it is of utmost importance for businesses to carefully manage their compliance processes under the Climate Law.