Türkiye Green Taxonomy Regulation – Information Note for TKSD Members

The Turkish Green Taxonomy Regulation entered into force following its publication in the Official Gazette, dated 24 September 2026 and numbered 33380.

24.09.2026

The Türkiye Green Taxonomy Regulation, prepared by the Directorate General for Climate Change under the Ministry of Environment, Urbanisation and Climate Change, covering 16 sectors and 137 economic activities, was published in the Official Gazette No. 33380 dated 24 September 2026 and came into force. The Regulation is based on the Climate Law No. 7552.


Prepared within the framework of the Green Deal Action Plan published in 2021, the Turkey Green Taxonomy Regulation will serve as a guide in determining which economic activities are environmentally sustainable. It provides a common language and assessment framework aimed at enhancing transparency in the market and reducing the risk of ‘greenwashing’, whilst helping industrialists secure a greater share of international green finance.


The process initially focused on the economic activities included in the EU Taxonomy; however, unlike the EU Taxonomy, the Turkish Green Taxonomy also incorporates the agriculture and tourism sectors, which are of critical importance given the country’s structure. The sectors and economic activities to be added in subsequent stages will be determined through the work of the Technical Expert Group and the Turkish Green Taxonomy Committee. The Technical Screening Criteria will be announced on the official website of the Presidency for Climate Change. Should any updates be made to the criteria, the updated criteria will be published by 15 December each year and will come into effect the following year.


Under the Regulation, the following six environmental objectives have been established for economic activities:

  • Reduction of greenhouse gas emissions,
  • Adaptation to climate change,
  • Sustainable use and protection of water and marine resources,
  • Transition to a circular economy,
  • Prevention and control of pollution,
  • Conservation and restoration of biodiversity and ecosystems.

This framework sets out an approach that is largely parallel to the six environmental objectives in the European Union Taxonomy.


Inclusion in Annex 1 merely indicates that an activity is eligible to the taxonomy; it is not, in itself, sufficient for it to be considered environmentally sustainable. For an activity to be classified as taxonomy-compliant, it must fulfil all three conditions. These conditions are defined as ‘Substational Contribution’, ‘Do No Significant Harm (DNSH)’ and ‘Minimum Social Safeguards’. Under the new regulation, for an economic activity to be considered taxonomy-compliant, it must make a substantial contribution to at least one of the six environmental objectives, whilst causing no significant harm to the others, and must comply with minimum social safeguard measures.


Assessments of substantial contribution and no significant harm will be carried out using technical screening criteria to be published by the Climate Change Directorate. The minimum social safeguards framework encompasses the ten core conventions defined in the ILO’s Declaration on Fundamental Principles and Rights at Work, the Universal Declaration of Human Rights, the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights, and national labour and social security legislation.


The difference between an ‘eligible’ activity and a ‘compliant’ activity

  • Taxonomy-eligible economic activity: An economic activity listed in Annex 1 of the Regulation. This definition does not, in itself, imply that the activity is environmentally sustainable.
  • Taxonomy-compliant economic activity: An eligible activity listed in Annex 1 must make a significant contribution to at least one environmental objective, cause no significant harm to any other environmental objectives, and comply with minimum social protection measures (Article 6).
  • Transitional activity: In sectors where low-carbon economic and technological alternatives are not yet available, this is an activity that has the lowest greenhouse gas emission levels and does not hinder the development of low-carbon alternatives.
  • Enabling activity: An activity that facilitates a significant contribution to at least one environmental objective, has a positive environmental impact throughout its life cycle, and does not encourage the use of carbon-intensive assets.


Technical screening criteria shall be drawn up to be as quantitative and verifiable as possible, and shall take into account life-cycle impacts. Production activities using solid fossil fuels shall not be assessed as environmentally sustainable activities (Article 11).


Sectors covered by Annex 1 and activities relating to the chemical industry

Annex 1 comprises a framework of 16 sectors, consisting of forestry, environmental protection and restoration, manufacturing, energy, water supply and waste management, transport, construction and property, information and communication, professional, scientific and technical activities, agriculture, tourism, arts, entertainment and recreation, finance and insurance, disaster risk management, and service and accommodation activities.


The main Annex 1 activities directly relevant to the chemical industry are as follows:

  • Under the headings of ‘Reduction of greenhouse gas emissions’ and ‘Adaptation to climate change’, these include hydrogen production, carbon black production, soda ash production, chlorine production, the production of basic organic chemicals, anhydrous ammonia production, nitric acid production and the production of plastics in primary form. In Annex 1, some of these activities are designated as transition activities.
  • Under the heading ‘Transition to a circular economy’, the manufacture of plastic packaging products and the manufacture of electrical and electronic equipment are included.
  • Under the heading ‘Prevention and control of pollution’, the manufacture of active pharmaceutical ingredients or active substances and the manufacture of medical products are included.
  • Chemical companies’ investments in energy, water, wastewater, waste management, recovery, buildings, transport, carbon capture, transport and storage, and renewable energy may also fall within the scope via various Annex 1 activities.


This list highlights the key areas relevant to TKSD members. Companies must ensure that all their activities and investments are fully aligned with Annex 1. A single activity may fall under more than one environmental objective.


Reporting Process

Under the Regulation, the reporting process has been structured as a dual framework for the real sector and the financial sector.

Within this framework, the procedures and principles for reporting by the real sector will be determined by the Climate Change Presidency, whilst those for the financial sector, along with the reporting templates, will be determined by the Capital Markets Board, the Banking Regulation and Supervision Agency and the Insurance and Private Pension Regulation and Supervision Agency.

There will be no legal obligation for voluntary reporting in the real sector; however, companies seeking green financing from banks and financial institutions may be required to report under this Regulation.

Organisations, institutions and businesses engaged in at least one of the economic activities listed in Annex 1 of the Regulation will be able to carry out voluntary reporting using the templates to be published by the Climate Change Presidency.

Mandatory reporting covers intermediary institutions, investment partnerships, portfolio management companies, banks, insurance and reinsurance companies, and pension companies. These organisations will not be required to submit taxonomy reports until 1 January 2029; mandatory reporting will commence from that date.


Indicators and timeframes to be considered in reporting:

In reporting for the real sector, the ratios of revenue, investment expenditure and operating expenses derived from products or services that are taxonomy-compliant or taxonomy-aligned to the total will be taken as the basis. Where the share of activities covered by Annex 1 falls below 10 per cent in any of these indicators, the key performance indicator for the relevant economic activity may be excluded from the report.

Reports shall be uploaded to the Online Taxonomy Management System by the end of the sixth month following the end of the financial statement period and shall cover the period of the preceding year prior to the date of reporting. Taxonomy reports uploaded to the system shall, as a rule, be made publicly available.

The taxonomy transition plan will form an integral part of the report. The procedures and principles regarding the transition plan and the verification of reports will be determined by the Climate Change Directorate.


Initial preparatory steps for TKSD members

  • Although a full compliance analysis cannot be carried out until the technical screening criteria have been published, preparations for the compliance analysis and data infrastructure can begin:
  • Matching activities and investment projects with the list of activities in Annex 1 of the Regulation,
  • Segregating revenue, investment expenditure and operating cost data by activity,
  • Technical evidence dossier: Identify the source, calculation method, responsible party and verification trail for data on emissions, energy, water, waste, pollution, biodiversity and climate risk.
  • Review of practices regarding human rights, working conditions, business ethics and compliance with labour and social security legislation,
  • Green claim control: Link the use of terms such as ‘green’, ‘sustainable’ or ‘taxonomy-compliant’ for a product, activity or investment to the internal control process until taxonomy compliance is finalised.
  • Financing processes: Review the data requests that may be expected during discussions with banks and investors, the sustainability indicators in loan agreements, and the current project portfolio.
  • Monitoring of technical screening criteria and secondary regulations to be published by the Banking Regulation and Supervision Agency (BDDK), the Capital Markets Board (SPK) and the Securities and Exchange Commission (SEDDK).


Points to consider in practice

  • Inclusion in Annex 1 does not, in itself, ensure taxonomy compliance or eligibility for green finance.
  • A full compliance analysis cannot be finalised until the technical screening criteria have been published; however, activity mapping and data preparation may commence.
  • It is important, in order to mitigate the risk of ‘greenwashing’, that publicly available reports and statements regarding financing, advertising and marketing are based on the same data and evidence.
  • Should reporting entities fail to submit the required notifications, information and documents, an administrative fine may be imposed in accordance with the Climate Act No. 7552 (Article 23).


Sources

You can access the Turkish Green Taxonomy Regulation and its annex here.

You can view the announcement by the Presidency for Climate Change on this matter here.


Note: This document has been prepared for general information purposes. The final assessment on an activity-by-activity basis must be carried out by examining the technical screening criteria alongside the organisation’s specific data and documents.


Respectfully,

Turkish Chemical Industry Association