The 2024-2026 Medium-Term Program (MTP) prepared by the Republic of Türkiye Ministry of Treasury and Finance and the Presidency of Strategy and Budget was published in the Official Gazette on 6 September 2023 and numbered 32301.

In the MTP, renewable resources, energy efficiency, electrification, and circular economy policies have taken center stage, particularly in the sectors of energy, industry, transportation and agriculture. In this respect the MTP serves as a road map while increasing predictability for both the public and private sectors.

Globally, the effects of the COVID-19 pandemic and the subsequent Russian-Ukrainian war have led to the spread and acceleration of sustainability-oriented policies. Türkiye, which is among the countries with high exposure to climate change due to its geographical location and natural resources, is also significantly affected by international policies and developments in the fight against climate change given its level of integration into the global economy.

In this framework, the country’s determination to transition to a low-carbon economy by becoming a party to the Paris Agreement was demonstrated by its 2053 net-zero emissions target. In addition, a Green Deal Action Plan was prepared within the scope of its harmonization efforts with the European Union, its main trading partner.

What is envisaged under the Program?

1. Comprehensive Climate Legislation: The MTP requires completion of basic legislation to address climate change-related practices in a holistic manner.
2. National Emissions Trading System (ETS): The legal framework for the National Emissions Trading System (ETS) will be finalized, ensuring compatibility with the EU’s Carbon Border Adjustment Mechanism (CBAM). Adequate preparations will be made for the financial obligation phase.
3. Long-Term Low-Emission Development: Work will be undertaken to develop a long-term low-emission development strategy in alignment with the 2053 net-zero emissions target.
4. Resource and Energy Efficiency: Sector-specific roadmaps will be created for resource, process, and energy efficiency, including digitalization. Awareness-raising initiatives will be carried out.
5. Update of the Green Deal Action Plan: The Green Deal Action Plan will be updated to increase competitiveness in export markets, particularly the European Union, and to enhance Türkiye’s position in supply chains.
6. Greenhouse Gas Emissions Monitoring: Infrastructure will be established to monitor and price greenhouse gas emissions.
7. Technological Advancements: Research and development activities will support technologies such as energy storage, hydrogen, carbon capture, utilization, storage, micro-grid management and digitalization to facilitate energy transformation in line with the CBAM and the 2053 net-zero emissions target.
8. Circular Economy: To align with the circular economy policies of the EU, an impact assessment will be conducted. This will lead to the creation of a National Circular Economy Action Plan, emphasizing resource efficiency, sustainable production and consumption, waste management, and industrial symbiosis.
9. Sustainable Consumption: Measures will be implemented to protect consumer health, safety, and economic interests whilst promoting the prevalence of refurbished products.
10. Green Public Procurement: Strategies will be devised to guide green transformation in public procurement.
11. Electric Vehicle Promotion: A network of charging stations will be developed to encourage the widespread use of electric vehicles, particularly domestic ones.
12. Climate-Resilient Agriculture: Resilient agricultural practices and technologies will be promoted to make efficient use of soil and water resources.
13. Enhanced Green Financing: Financing opportunities for green transformation will be expanded, with a focus on creating a National Green Taxonomy in line with the Türkiye’s needs.
14. ESG Reporting: With the development of new sustainability-based regulations and practices in capital markets, sustainability-reporting principles of companies will be updated in line with international standards. In addition, a third-party assurance and verification system will be established for ESG reporting, and data in this area will be integrated into the system to be established.

Conclusion

The main focus of Türkiye's Medium-Term Program is to improve the technology profile of production and exports with a focus on green and digital transformation, and to ensure a stable growth environment for Türkiye in which internal and external balance is maintained. The coming years are poised to see special attention being given to the opportunities presented by green and digital transformation and harmonization of regulations. Especially in the energy, industry, transportation and agriculture sectors, the aim is to strengthen Türkiye’s international competitive position with sustainable, low-emission, high-tech production techniques by adopting integrated and environmentally friendly policies.