Climate law prevents additional carbon taxes in Europe: Association

ANKARA- Anadolu Agency

Türkiye’s first Climate Law, recently approved by parliament, aims to ensure that the costs associated with carbon-intensive activities remain within the country, thus preventing the payment of additional carbon taxes in Europe, a sector representative has said.

Onur Ünlü, chair of the Turkish-based Energy Efficiency and Management Association, stated that the Climate Law lays the groundwork for an emissions trading system aligned with green growth and net zero emissions goals.

Ünlü said the system will introduce a cap consistent with the net-zero emissions target and is designed to encourage emission reductions. Upper limits will be determined according to sectoral emission rates.

“Companies exceeding these limits will pay a pollution fee equal to the exceeded amount but the new system also includes an incentive for businesses emitting greenhouse gases below the limit, and these companies will be able to sell their unused emission rights to other companies,” he said.

“A carbon trading platform based on supply and demand will emerge," he added.

Ünlü expressed these steps will help shrink the country’s current account deficit as most carbon emissions come from energy consumption.

“If an active emissions trading system is established and companies going over limits pay the fees, their products won’t be subject to additional tax under the EU’s Carbon Border Adjustment Mechanism, so these carbon-intensive activities will remain in Türkiye,” he said.

The system will encourage the shift to clean technologies and efficiency in energy-intensive industries while facilitating compliance with the European Green Deal and the Carbon Border Adjustment Mechanism.