Türkiye's green taxonomy regulation takes effect
The rules define which investments count as environmentally sustainable, with mandatory reporting for the financial sector starting in 2029.
Türkiye's green taxonomy regulation has taken effect, setting national criteria for which economic activities count as environmentally sustainable, the Ministry of Environment, Urbanization and Climate Change said.
The regulation aims to ease the shift to a low-carbon economy, align Türkiye with European Union (EU) climate standards and help manufacturers win a bigger share of international green finance. The ministry said shared terms and assessment criteria would make the market more transparent and reduce the risk of greenwashing.
The regulation sets six environmental objectives: cutting greenhouse gas emissions, adapting to climate change, using and protecting water and marine resources sustainably, moving to a circular economy, preventing pollution, and protecting and restoring biodiversity. To qualify, an activity must contribute substantially to at least one objective, do no significant harm to the others and meet minimum social safeguards.
The technical screening criteria cover 16 sectors and 137 economic activities. Building on the EU taxonomy, Türkiye added agriculture and tourism, which are key to its economy.
Reporting will be voluntary for companies outside the financial sector, though banks may require it from companies seeking green financing. Financial institutions must report starting Jan. 1, 2029. Minister Murat Kurum said the regulation would clear the way for sustainable investment and make it easier for manufacturers to access international green finance.
Gegg
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