Abstract
Using a combination of desk research and quantitative approach, this chapter assesses Turkey’s obligations deriving from the Kyoto Protocol, and other international arrangements with a specific focus on carbon trade. The desk research involves reviewing Turkey’s greenhouse gas emission and her responsibilities with regard to the aforementioned protocol and arrangements. Whereas the quantitative approach includes an estimation of Turkey’s emission reduction potential. The assessment shows that while not having any binding commitment to reduce greenhouse emissions deriving from the protocol, Turkey recognizes her responsibilities originating from the arrangements. Accordingly, Turkey implements various policies including voluntary emission trade initiated in 2005. Yet, the progress has been rather slow, among other reasons, due to inadequate legal infrastructure and high level of emission in the Turkish energy sector. This chapter cautions that unless the necessary legal adjustments, particularly in the Turkish tax law, are made, the carbon trade in Turkey is likely to be exposed to the carbon trade fraud once experienced within the EU Emission Trading System. Nevertheless, Turkey has accumulated significant experience through the voluntary emission trade so far. Based upon 2013 data, Turkey has a potential of reducing 20 million tons greenhouse gas emission with market value of $80 million yearly by revitalizing 308 small and large scale renewable energy projects.
A slightly different version of this chapter titled as “Turkey’s obligations deriving from Kyoto protocol and assessments related to the Turkish carbon market” is presented at the 5th Multinational Energy and Value Conference, 7–9 May 2015, Istanbul, Turkey.
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Notes
- 1.
Carbon Dioxide Equivalent: A metric measure used to compare the emissions from various greenhouse gases based upon their Global Warming Potential (GWP: A measure of the total energy that a gas absorbs over a particular period of time (usually 100 years), compared to carbon dioxide) (EPA 2015).
- 2.
Although Russia is not an OECD member, due to its importance in terms of GHG emissions it is included in the OECD tables throughout. Due to lack of data Mexico and Chili are not included.
- 3.
Opening Criteria (1) Turkey presents to the Commision its comprehensive strategy for thegradua, well coordinated transportation, implementation and enforcement of the acquis in this chapter, including plans for building up the necessary administrative capacity at national, regional and local level and required financial resources, with an indication of milestones and timetables.
Opening Criteria (2) Turkey fullfils its obligations regarding the implementation of applicable environment acquis in line with the relevant EC-Turkey Association Council Decisions (The Ministry of EU 2015).
- 4.
- 5.
Projects which are not revealed by the Ministry of Environment and Urbanization as of 18.04.2014 are not taken into account.
- 6.
Breddin and Muckley (2011) analize the price formation of energy products and effects of emission allowances on the price formation. This study finds that contract price of allowances are also an important determinant of prices of energy products in the energy market.
- 7.
About 150 companies investigeted related with carbon credit transactions in Italy in 2010 and potential VAT loss is estimated to be around 500 million euros. France, Germany, Spain, United Kingdom, Norway, Switzerland, Belgium, Czech Republic, Denmark, Latvia, the Netherlands, Slovak Republic and Portugal are all among the countries trying to identify the network of carbon credit fraud (Europol 2010).
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Sever, D., Bağdadioğlu, N. (2016). International Arrangements, the Kyoto Protocol and the Turkish Carbon Market. In: Dorsman, A., Arslan-Ayaydin, Ö., Karan, M. (eds) Energy and Finance. Springer, Cham. https://doi.org/10.1007/978-3-319-32268-1_4
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