Ministry of Trade Announces Support Package for “Green Transformation” in Exports
On February 23, 2024, the Official Gazette published the Presidential Decree No. 8191, amending the Decision on Export Supports. The Ministry of Trade, recognizing the European Union (EU) as Turkey’s paramount trading partner due to the Customs Union Agreement and its considerable share in Turkey’s total exports, unveiled the European Green Deal Compliance Support Project. This project seeks to enhance Turkish exporters’ sustainability awareness and provide a strategic roadmap. The Ministry aims to elevate awareness regarding corporate sustainability-focused transformations aligned with the European Green Deal, conduct situational analyses, establish roadmaps for improvement, and facilitate access to both national and international funding for export companies. Following the amendment in Article 14 of the Decision, companies will receive a 50% subsidy on consultancy service expenses, up to a total of 10 million TRY over a span of five years.
For more information, please visit our law firm’s article at https://aksan.av.tr/en/blog/detail/3255.
Starting January 1, 2024, the European Union (EU) will incorporate the maritime sector into its Emission Trading System (ETS). This extension will encompass emissions from all intra-EU maritime operations and port manoeuvres, with 50% of emissions from international maritime voyages to or from the EU also included. This regulation mandates that maritime companies carefully monitor and report their emissions. Furthermore, the directive will be revised to include an array of pollutants such as wastewater and garbage released into the sea, based on the International Convention for the Prevention of Pollution from Ships, thereby improving pollution tracking and enhancing transparency in corporate procedures.
The European Parliament has reached a provisional agreement to delay the sustainability reporting obligations for companies operating within the EU, as well as for non-EU companies under the Corporate Sustainability Reporting Directive (CSRD). This decision aims to allow companies more time to adequately meet their reporting obligations and to give the European Financial Reporting Advisory Group (EFRAG) additional time to develop new reporting standards.
By postponing the reporting obligations by two years, the Commission intends to initially focus on implementing the European Sustainability Reporting Standards (ESRS). This provisional agreement is expected to be formally adopted by the EU Council and Parliament in the upcoming days. Belgian Deputy Prime Minister and Minister of Finance, Vincent Van Peteghem, commented on the agreement, stating, “Today's agreement reduces reporting requirements to a minimum and gives companies time to implement the ESRS and prepare for the sector-specific European Sustainability Reporting Standards.”
The Turkish Ministry of Environment, Urbanization, and Climate Change has issued its “2024 – 2028 Strategic Plan”, dedicated to leading green transformation initiatives across various domains and with all stakeholders, and to fostering climate resilience. The strategic plan outlines policies and strategies aimed at climate change adaptation and greenhouse gas emission reduction, supporting both national and global objectives. It articulates three primary goals: facilitating steps for green transformation, boosting climate change adaptation capacity at both national and local levels, and enhancing institutional capacity. By 2028, the plan targets a 39% reduction in greenhouse gas emissions and anticipates allocating 1.23 billion TRY in grants. It also foresees the completion of Turkey’s Second National Contribution Declaration and National Green Taxonomy Legislation within its duration.
Sources: https://iklim.gov.tr/our-presidency-2024---2028-strategic-plan-published-news-4212
https://www.isoyesilblog.com/climate-change-presidency-2024-2028-strategic-plan-published/
The International Capital Market Association (ICMA) has published a document highlighting support for international taxonomies during the transition phase, encompassing sectoral roadmaps and industrial strategies. The publication underlines the essential role of the new corporate sustainability standards introduced by the International Sustainability Standards Board (ISSB) and the European Corporate Sustainability Reporting Standards (ESRS) in facilitating transition plans, particularly within the sustainable bond market. Nicholas Pfaff, ICMA’s Deputy CEO and Head of Sustainable Finance, emphasizes the prioritization of climate transition finance among both policymakers and market participants, advocating for a structured approach to developing integrated transition plans to exploit the sustainable bond market’s full potential.
The European Parliament and Council have reached a provisional agreement on establishing new rules aimed at enhancing the reliability, comparability, and transparency of ESG ratings, which assess a company’s environmental, social, and governance impacts and risks. The newly proposed regulations require ESG rating agencies within the EU, which were previously unregulated, to obtain authorization and undergo supervision by the European Securities and Markets Authority (ESMA). This agreement intends to clarify operational standards within the EU and introduce detailed regulations regarding ESG ratings and their exceptions.
On February 20, 2024, the European Commission made significant progress towards achieving its Net Zero Carbon Emissions goal by 2050. The Industrial Carbon Management Communication, initially proposed in November 2022, details technologies for capturing, removing, and subsequently storing or utilizing carbon dioxide. This initiative aims to establish a unified market for carbon dioxide in Europe by 2050, outlining necessary steps for infrastructure development and focusing on investment, financing, research, innovation, public awareness, and international cooperation to attract investors to industrial carbon management projects.
Sources:https://www.euractiv.com/section/climate-environment/news/eu-reaches-deal-on-worlds-first-carbon-removal-certification-scheme/, https://ec.europa.eu/commission/presscorner/detail/en/IP_24_585