Promoting the green energy transition

Greenhouse gas emissions per capita are low in international comparison but have grown fast in recent years. Coal accounts for around one third of Türkiye’s total greenhouse gas emissions.

Türkiye has promoted renewable energy, with capacity doubling over the past decade. Government policies have been supportive, including via preferential feed-in tariffs, procurement auctions for renewable energy, support to investment and subsidies for rooftop solar installations. Still, much of the potential remains unexploited. The first nuclear power plant is under construction and is expected to meet around 10% of total electricity needs.

Coal combustion accounts for almost a third of electricity generation. Gradually phasing out coal-fired power is essential to achieve the government’s net zero target. Still generous support to the domestic coal sector should gradually be reduced.

Carbon emissions are priced below the levels seen in most other OECD countries. Türkiye does not have an explicit carbon pricing system and effective carbon prices consist mostly of fuel excise taxes. A large share of greenhouse gas emissions from energy use in the electricity and industry sectors is not taxed.