Evaluating Turkey’s Medium-Term Plan (“MTP”) İn The Context Of ESG

In the face of global challenges such as climate change and the evolving dynamics of production and consumption patterns brought about by the COVID-19 pandemic, alongside disruptions in energy supply and demand due to recent events like the Russia-Ukraine conflict, the need for sustainability-focused policies and practices has become increasingly evident.

In this context, renewable resources, energy efficiency, electrification, and circular economy policies have taken center stage, particularly in sectors including energy, industry, transportation and agriculture.

Turkey’s Unique Position:

Turkey, positioned among countries highly exposed to climate change due to its geographical location and natural resources, is also significantly influenced by international policies and developments in the fight against climate change, given its level of integration with the global economy. In this context, Turkey has demonstrated its commitment to transitioning to a low-carbon economy by becoming a signatory to the Paris Agreement and setting the ambitious target of achieving net-zero emissions by 2053. This commitment is further underscored by the preparation of the Green Deal Action Plan as part of efforts to align with its key trading partner, the European Union.

Key Policies and Measures in the MTP:

  1. Comprehensive Climate Legislation: The MTP encompasses the completion of foundational legislation that comprehensively addresses climate change-related practices.
  2. National Emissions Trading System (ETS): The legal framework for the National Emissions Trading System (ETS) will be finalized, ensuring compatibility with the European Union Border and Carbon Regulation Mechanism (CRM). Adequate preparations will be made for the financial obligation phase.
  3. Long-Term Low-Emission Development: Work will be undertaken to develop a long-term low-emission development strategy in alignment with the 2053 net-zero carbon emission target and compatible with development plans.
  4. Resource and Energy Efficiency: Sector-specific roadmaps will be created for resource, process, and energy efficiency, including digitalization. Awareness-raising initiatives will be carried out.
  5. Update of the Green Deal Action Plan: The Green Deal Action Plan will be updated, focusing on enhancing competitiveness and elevating Turkey’s position in export markets, particularly the European Union.
  6. Greenhouse Gas Emissions Monitoring: Infrastructure will be established to monitor and price greenhouse gas emissions.
  7. Technological Advancements: Research and development activities will support technologies such as energy storage, hydrogen, carbon capture, utilization, storage, micro-grid management, and digitalization to facilitate energy transformation in line with the Border Carbon Regulation Mechanism and the 2053 net-zero emission target.
  8. Circular Economy: To align with the circular economy policies of the EU, an impact assessment will be conducted. This will lead to the creation of a National Circular Economy Action Plan, emphasizing resource efficiency, sustainable production and consumption, waste management, and industrial symbiosis.
  9. Promotion of Circular Economy Model: Efforts will be made to promote a circular economy model and support sustainability in manufacturing by defining standards for recovered secondary products and introducing relevant regulations.
  10. Sustainable Consumption: Measures will be implemented to protect consumer health, safety, and economic interests, promoting the prevalence of refurbished products.
  11. Green Public Procurement: Strategies will be devised to guide green transformation in public procurement.
  12. Electric Vehicle Promotion: A network of charging stations will be developed to encourage the widespread use of electric vehicles, particularly domestic ones.
  13. Climate-Resilient Agriculture: Resilient agricultural practices and technologies will be promoted to effectively utilize soil and water resources.
  14. Enhanced Green Financing: Financing opportunities for green transformation will be expanded, with a focus on creating a National Green Taxonomy.
  15. ESG Reporting: Regulations and practices will be developed to align companies’ sustainability reporting with international standards. Additionally, a third-party assurance and verification system for Environmental, Social, and Governance reporting will ensure data integration within this framework.

 

Turkey’s MTP reflects its determination to accelerate the country’s green transformation, taking into account the 2053 net-zero emissions target and national development priorities. These policies and measures demonstrate a commitment to achieving sustainability goals, mitigating climate change, and fostering economic growth in a rapidly evolving global landscape.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

 

First published by Mondaq on 12 September 2023

Sosyal Medyada Paylaş:

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