Climate Law Ushers In New Era for Renewable Energy Investments

The Climate Law initiates comprehensive transformation in energy and climate policies in line with Turkey's net zero emission target. The law's provisions standing out in terms of renewable energy and wind energy investments are detailed under the headings: Renewable Energy Priority for Emission Reduction, Integrated Energy Policies in Planning Tools, Financing and Incentive Mechanisms, Carbon Market and ETS (Emission Trading System).

TÜREB Chairman Dr. İbrahim Erden, evaluating the relevant headings, emphasized that with these regulations, access to financial incentives for the renewable energy sector will increase, and investments aligned with climate targets will gain priority…

The Climate Law is a legal regulation aimed at minimizing the negative effects of crises and damages resulting from climate change. Through steps such as increasing green employment, promoting renewable energy investments and reducing carbon footprint, economic growth is intended to be aligned with environmental sustainability. The Climate Law will also promote societal awareness of the green transition process, encouraging individuals and businesses to adopt environmentally friendly practices.

Low-Carbon Energy Production, Including Wind Energy, Will Be Supported
TÜREB (Turkey Wind Energy Association) Chairman Dr. İbrahim Erden, providing assessments on the law in terms of renewable energy and wind energy investments: "With the 'Renewable Energy Priority for Emission Reduction' article in the Climate Law, within the scope of the net zero emission target, measures such as increasing renewable energy use, energy, water and raw material efficiency, and widespread adoption of clean technologies become mandatory for public institutions and the private sector. Support is targeted for low-carbon energy production technologies, including wind energy.

With the law's "Integrated Energy Policies in Planning Tools" article, renewable energy investments will be prioritized in all strategies, plans and programs to be prepared at local and national levels. A Provincial Climate Change Coordination Board will be established in each province; through these boards, energy policies will be developed at the local level. By establishing Turkey's Green Taxonomy, economic activities contributing to environmental targets (wind, solar, etc.) will be classified.

With the Financing and Incentive Mechanisms article, all revenues obtained, primarily from the Emission Trading System (ETS), will be used to support climate-friendly investments. High-emission reduction potential investments such as wind energy will be supported through grants, insurance, green bonds, guarantee mechanisms and other financial instruments," he said.

Stating that a National Emission Trading System will be established in Turkey and carbon pricing practices will come into effect, Erden stated: "The process of monitoring emissions in the electricity generation sector and linking them to allocations will begin. EPİAŞ will operate the ETS market, while the Energy Market Regulatory Authority will conduct market supervision and control of the ETS market. The deadline for all relevant institutions to update their plans and strategies is 31 December 2027.

With these regulations, access to financial incentives for the renewable energy sector will increase, and investments aligned with climate targets will gain priority. It is of great importance that our investors, local administrations and all relevant stakeholders closely follow the process and revise their planning in a manner compatible with the Climate Law," he stated.