Türkiye is gearing up to host COP31 in 2026, taking a significant step towards achieving green finance and reforms for a sustainable future. Joining the Paris Agreement in 2021 marked a shift in how Türkiye views climate change—not just as an environmental issue but also as a key part of its economic strategy. The aim is to keep the global temperature increase to 1.5 degrees Celsius, which directly impacts Türkiye’s economy, production methods, and trade.
The global economy is facing challenges. Issues like trade tensions, the Russia-Ukraine conflict, and energy prices are impacting stability. In this context, climate policies have become essential for sustainable development and energy security.
Over the years, Türkiye has built a framework for climate policies through its development plans. These plans highlight a balance between economic growth and global responsibilities. For instance, the 12th Development Plan mentions climate issues and green transformation numerous times, signaling their importance in Türkiye’s future strategies.
Türkiye aims for sustainable development by shifting to resilient and low-carbon economic growth to counter climate impacts. A major goal is to boost renewable energy in electricity production from 40% to 50%. Increasing battery storage capacity and improving waste management are also part of this transition. With a growing share of renewables, Türkiye is well-positioned to align with climate policies but must address technology and financing challenges.
Financing is another critical aspect. Emission reduction targets vary by sector, impacting energy, industry, and agriculture. The European Union’s Carbon Border Adjustment Mechanism (CBAM) is a key external factor. It could put pressure on carbon-heavy industries, prompting businesses to adapt. Some sectors, like metals and automotive, are closely monitoring these developments, as they may have opportunities to gain advantages under this system.
In 2026, Türkiye will play a pivotal role in global climate discussions. Hosting leaders and representatives from around the world, COP31 will tackle various aspects of climate economics, including financing and carbon markets. The event will take place in Antalya and will emphasize Türkiye’s ambition to be a regional leader in climate finance.
Moreover, COP31 is a diplomatic milestone and opens doors for Türkiye in green finance and sustainable investment. The global climate finance landscape, projected to be in trillions, will be greatly influenced by emission trading systems and green bonds. Türkiye’s leadership in COP31 will help channel these financial flows more inclusively, especially benefiting developing countries.
As the world faces rising geopolitical risks and climate change, comprehensive policies are essential. An emissions trading system could be a vital tool for fostering investment. Tailoring this system to reflect emission intensity across various sectors will enhance its effectiveness. Increasing research and development (R&D) in low-carbon technologies and circular economy practices is crucial for Türkiye’s manufacturing industry to remain competitive globally.
With a goal of achieving net-zero emissions by 2053, revising strategies for climate change and setting interim targets will align climate policies with economic goals. If managed well, this could enable Türkiye to transition economically while reducing emissions without hampering growth.
The stakes are high, and Türkiye’s proactive approach to climate economics showcases its commitment to creating a sustainable future.
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