Türkiye has published its Green Taxonomy Regulation, establishing environmental sustainability criteria for 16 sectors and 137 economic activities in a move aimed at accelerating the country's green transition and improving access to international green finance.

Environment, Urbanization and Climate Change Minister Murat Kurum said the regulation would support sustainable investments, facilitate the transition to a low-carbon economy and help align Türkiye's environmental policies with international standards, including those of the European Union.

Six environmental objectives defined

Under the Türkiye Green Taxonomy, economic activities will be assessed against six environmental objectives: climate change mitigation, climate change adaptation, the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution prevention and control, and the protection and restoration of biodiversity and ecosystems.

The regulation establishes technical screening criteria to determine which investments qualify as environmentally sustainable, with the aim of directing more financial resources toward green projects while improving market transparency and reducing the risk of "greenwashing."

Three conditions for taxonomy compliance

To be classified as "Green Taxonomy Aligned," an economic activity must satisfy three requirements simultaneously.

It must make a substantial contribution to at least one of the six environmental objectives, do no significant harm to the remaining objectives, and comply with minimum social safeguards and internationally recognized social standards.

The regulation also provides the framework for reporting and verification procedures, as well as the operation of the online taxonomy management system that will support implementation.

Mandatory financial-sector reporting from 2029

Reporting rules for companies in the real sector will be determined by the Climate Change Presidency, while reporting standards and templates for financial institutions will be prepared by the Capital Markets Board (SPK), the Banking Regulation and Supervision Agency (BDDK) and the Insurance and Private Pension Regulation and Supervision Agency (SEDDK).

Reporting by companies in the real sector will remain voluntary. However, businesses seeking green financing from banks or other financial institutions may be required to submit taxonomy reports.

Mandatory reporting for banks, insurance companies and other financial institutions will take effect on January 1, 2029, following a transition period set out in the regulation.(ILKHA)