Turkey
In 2020-2021, in response to the COVID 19 pandemic, Turkey has committed at least USD 15.84 billion to supporting different energy types through new or amended policies, according to official government sources and other publicly available information. These public money commitments include:
- At least USD 15.77 billion for unconditional fossil fuels through 11 policies (5 quantified and 6 unquantified)
- Some public money committed for conditional fossil fuels (1 policy with the value of public money unquantified)
- Some public money committed for unconditional clean energy (3 policies with the value of public money unquantified)
- At least USD 71.26 million for conditional clean energy through 5 policies (2 quantified and 3 unquantified)
- Some public money committed for other energy (1 policy with the value of public money unquantified)
By energy type, Turkey committed at least USD 4.91 billion to oil and gas (at least USD 4.91 billion to unconditional oil and gas).
In addition, Turkey committed at least USD 49.88 million to coal (at least USD 49.88 million to unconditional coal).
Further, no public money commitments identified for hydrogen based on fossil fuels.
Finally, Turkey committed at least USD 9.39 billion to multiple fossil fuels (at least USD 9.39 billion to unconditional multiple fossil fuels).
A considerably larger amount of public money committed to supporting the economy and people of Turkey through monetary and fiscal policies in response to the crisis may also benefit different elements of the energy sector. However, these values are not available from official legislation and statements and therefore are not included in the database. Meanwhile, in addition to monetary and fiscal measures, the database lists other policies and regulations that can also provide benefits to producers and consumers of different energy types.
These public money commitments are additional to many other government policies that had existed to support different energy types before the COVID19 pandemic.
More information on key poverty and inequality indicators in Turkey can be found on the Inequality and Poverty Dashboard page.
Updated: December 31st 2021
At least
$15.77 billion
Supporting fossil fuel energy
$189.05
Per capita
At least
$71.26 million
Supporting clean energy
$0.85
Per capita
Turkey
In 2020-2021, in response to the COVID 19 pandemic, Turkey has committed at least USD 15.84 billion to supporting different energy types through new or amended policies, according to official government sources and other publicly available information. These public money commitments include:
- At least USD 15.77 billion for unconditional fossil fuels through 11 policies (5 quantified and 6 unquantified)
- Some public money committed for conditional fossil fuels (1 policy with the value of public money unquantified)
- Some public money committed for unconditional clean energy (3 policies with the value of public money unquantified)
- At least USD 71.26 million for conditional clean energy through 5 policies (2 quantified and 3 unquantified)
- Some public money committed for other energy (1 policy with the value of public money unquantified)
By energy type, Turkey committed at least USD 4.91 billion to oil and gas (at least USD 4.91 billion to unconditional oil and gas).
In addition, Turkey committed at least USD 49.88 million to coal (at least USD 49.88 million to unconditional coal).
Further, no public money commitments identified for hydrogen based on fossil fuels.
Finally, Turkey committed at least USD 9.39 billion to multiple fossil fuels (at least USD 9.39 billion to unconditional multiple fossil fuels).
A considerably larger amount of public money committed to supporting the economy and people of Turkey through monetary and fiscal policies in response to the crisis may also benefit different elements of the energy sector. However, these values are not available from official legislation and statements and therefore are not included in the database. Meanwhile, in addition to monetary and fiscal measures, the database lists other policies and regulations that can also provide benefits to producers and consumers of different energy types.
These public money commitments are additional to many other government policies that had existed to support different energy types before the COVID19 pandemic.
More information on key poverty and inequality indicators in Turkey can be found on the Inequality and Poverty Dashboard page.
$ %
Public money commitments to fossil fuels, clean and other energy in Turkey recovery packages, USD billion, in 2020-2021
| Country | Jurisdiction | Category | Policy name | Sector | Energy Type | Mechanism | Value committed, USD | Date of announcement | Stage | Legislation and Endorsing Agency | Arm of Government | Primary and secondary stated objective of the policy | Date of entry into force | Implemented repeal date, if any | Value committed, national currency | Value disbursed, national currency | Value disbursed, USD: | Policy background | Links to official sources | Links to additional sources | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Turkey | National | Fossil unconditional | Economic Stability Shield Program – VAT reduction on domestic flights | Mobility | Multiple fossil | Tax or royalty or govt fee bre... | 18/03/2020 | Energy use (all energy types, consumption in transport, household use, buildings etc) | Ministry of Transport and Infrastructure | Government | Support domestics flights | 18/03/2020 | 18/06/2020 | As part of the 100 billion TL Economic Stability Shield Program designed to combat the economic impacts of the COVID-19 pandemic. President Erdogan has announced VAT on domestic flights has been reduced from 18% to 1% for 3 months. | https://www.invest.gov.tr/tr/news/news-from-turkey/sayfalar/president-erdogan-unveils-economic-stability-shield-program.aspx |
https://taxnews.ey.com/news/2020-0605-%20turkey-introduces-economic-stability-shield-package-to-reduce-the-impact-of-covid19?uAlertID=Sd%2FG8rua1oj6%2Fl58EZ2AiA%3D%3D |
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| Turkey | National | Fossil unconditional | Establishment of 3 new oil-gas companies | Resources | Oil and gas | Uncategorized | 1684863901.9524 | 12/02/2021 | Exploration or production or processing or storage or transportation | Turkish Petroleum Overseas Company Limited | Government | Newly established enterprises are expected to play an active role in Turkey's aspire to explore oil and gas reserves overseas and production of newly found reserves | 12/02/2021 | 11822690000 | 11822690000 | 1684863901.9524 | With a Presidential Decree, Turkish Petroleum Overseas Company Limited (TPOC), which is a subsidiary of two other SOEs (Petroleum Pipeline Company - BOTAŞ and Turkish Petroleum Corporation - TPAO) has established 3 enterprises: Turkish Petroleum International Corporation (11.8 billion TL), BOTAŞ International Corporation (3.6 million TL) and Turkish Petroleum Off-Shore Technology Center Coroporation (21.5 million TL) | https://www.resmigazete.gov.tr/eskiler/2021/02/20210213-9.pdf |
https://www.cumhuriyet.com.tr/haber/cumhurbaskani-karari-ile-birisi-117-milyar-tllik-dev-sermayeli-3-yeni-sirket-kuruldu-yetki-super-denetim-yok-1813600 |
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| Turkey | National | Clean conditional | Incentives for production of EVs components | Mobility | Multiple renewable | Budget or off-budget transfer ... | 7125552.2302978 | 19/03/2021 | Energy use (all energy types, consumption in transport, household use, buildings etc) | Ministry of Industry and Technology | Government | To support the establishment of new EVs and battery production facility. | 19/03/2021 | 50000000 | 5000000 | 712555.22302978 | This incentive targets the establishment of a new EVs and battery production facility. Through this investment, a yearly production of 200,000 DC-DC converters, 200,000 charging units, 800,000 energy management units and 75,000 HV starters will be achieved. | https://www.resmigazete.gov.tr/eskiler/2021/03/20210320-32.pdf (Accessed 8 April 2021) |
https://www.dunya.com/ekonomi/izmirde-elektrikli-arac-sistemleri-uretim-tesisi-yatirimina-devlet-destegi-haberi-615126 (Accessed 8 April 2021) |
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| Turkey | National | Clean conditional | Incentives for EVs and battery production | Mobility | Multiple renewable | Budget or off-budget transfer ... | 64129970.072681 | 04/12/2020 | Energy use (all energy types, consumption in transport, household use, buildings etc) | Ministry of Industry and Technology | Government | To expand Ford's investment into EV and battery sector. | 04/12/2020 | 450000000 | 75000000 | 10688328.345447 | This incentive is provided for Ford Motor Company to extend its existing investment in Turkey into production of commercial EV and battery systems. With this new investment, Turkey will be the production and export center for Ford Transit Custom (Ford's new EV line) vehicles. It is expected that a new commercial EV capacity of 210,000/year and a battery capacity of 130,000/year will be added to the existing production line. | https://www.resmigazete.gov.tr/eskiler/2020/12/20201204-10.pdf (Accessed 8 April 2021) |
https://blog.ford.com.tr/turkiyenin-ilk-batarya-montaj-fabrikasini-kuruyoruz (Accessed 8 April 2021) |
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| Turkey | National | Fossil unconditional | Extension of lease contracts and cancellation of lease payments for airport facilities | Mobility | Oil and gas | Underpricing of govt-owned goo... | 3220749608.0946 | 16/02/2021 | Energy use (all energy types, consumption in transport, household use, buildings etc) | General Directorate Of State Airports Authority (Ministry of Transport and Infrastructure) | Government | Force majeure | 16/02/2021 | 22600000000 | Travel restrictions due to COVID-19 has forced the airports to run under low capacity. TAV Airports has appealed to GD of State Airports Authority for an extension of their lease contracts regarding the 5 airports under their operation. 2-year extension is granted to their contract and respective lease payments are delayed until 2024 (which were due 2022). Later, it is announced by the Minster of Transportation that for all of the airports that are rented out by the government (a total of 8 airports), the 2020 lease payments are cancelled and 2021-2022 lease payments are cut down by 50%, without any annual adjustment. | https://twitter.com/akaraismailoglu/status/1362739737686118400 (Accessed 18 February 2021) |
http://uemek.blogspot.com/2021/02/havalimanlarnda-kira-indirimleri.html (Accessed 18 February 2021) |
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| Turkey | National | Clean conditional | Increased special consumption tax for electric vehicles | Mobility | Multiple energy types | New or extended regulation (IT... | 01/02/2021 | Energy use (all energy types, consumption in transport, household use, buildings etc) | Ministry of Treasury and Finance | Government | No stated objective. | 01/02/2021 | Under this legislation the already existing special consumption tax rates has been considerably increased up to 4-fold depending on the engine power. (For engine power of up to 85 kW from 3% to 10%, for engine power between 85-120 kW from 7% to 25% from 7% and for power over 120 kW from 15% to 60%. | https://www.resmigazete.gov.tr/eskiler/2021/02/20210202-8.pdf (Accessed 3 February 2021) |
https://www.bloomberght.com/elektrikli-araclarda-otv-oranlari-artirildi-2273840 (Accessed 3 February 2021) |
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| Turkey | National | Clean conditional | New feed-in tariff rates for Renewable Energy Support Scheme (YEKDEM) | Power generation | Multiple renewable | New or extended regulation (IT... | 30/01/2021 | Electricity generation | Ministry of Energy and Natural Resources | Government | To support renewable energy investors. | 01/07/2021 | 31/12/2025 | The previous feed-in-tariffs were extended until the end of June, 2021, due to COVID-19. This new rates will be covering REN investments which are granted a renewable energy resource certificate between 1/07/2021 and 31/12/2025. The rates will be valid for 10 years. While the announcement of new rates have removed the uncertainty regarding the REN investments, TL denominated new tariffs will mean slightly higher equity ratios and higher interest rates, due to currency risk. | https://www.resmigazete.gov.tr/eskiler/2021/01/20210130-9.pdf (Accessed 1 February 2021) |
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| Turkey | National | Fossil unconditional | Increased retail loan for automobiles, launched by the public banks, with no specific emission contr... | Mobility | Multiple energy types | Loan (Hybrid) | 1425110446.0596 | 01/06/2020 | Energy use (all energy types, consumption in transport, household use, buildings etc) | Public banks | Public finance institution | To restore the demand in the automotive market. | 01/06/2020 | 10000000000 | During the COVID-19 times, easing on the automotive credits is announced in the first stimulus package on March 17th. Public banks started to provide low interest housing loans since the beginning of June. The disbursed amount covers the period starting between June (date of entry into force)-September (the latest available data). We are categorising this policy here is "fossil unconditional" based on that this scheme has no conditionality on conversion to more efficient, low emission cars or EVs. Hence, it ends up benefitting the fossil fuels industry. | https://www.hmb.gov.tr/haberler/hazine-ve-maliye-bakani-albayrak-basin-mensuplari-ve-ekonomistlerle-bir-araya-geldi (Accessed 2 November 2020) |
https://www.hurriyet.com.tr/ekonomi/tasit-kredilerindeki-artis-9-ayda-11-milyar-liraya-dayandi-41633183 (Accessed 2 November 2020) |
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| Turkey | National | Clean conditional | Extension of Renewable Energy Support Scheme (YEKDEM) | Power generation | Multiple renewable | New or extended regulation (IT... | 09/09/2020 | Electricity generation | Ministry of Energy and Natural Resources | Government | To support renewable energy investors | 17/09/2020 | 30/06/2021 | The Renewable Energy Support Scheme (YEKDEM) was first introduced into the system in 2013 and it outlines feed-in-tariffs of $0.133 for solar and biomass, $0.105 for geothermal, $0.073 for wind and hydro plants and it is valid for 10 years. Although this scheme was previously set to be repealed by the end of 2020 (November, 2nd being the last date of applications) now the Ministry of Energy and Natural Resources proposes to extend the application date for another 6 months, to benefit the renewable energy investors who were struggling with their imports and finances. | https://www.resmigazete.gov.tr/eskiler/2020/09/20200918-8.pdf Accessed 21 September 2020. |
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| Turkey | National | Clean unconditional | Energy Performance Contracts in Public Sector | Multiple sectors | Energy efficiency | New or extended regulation (IT... | 21/08/2020 | Energy efficiency | Ministry of Energy and Natural Resources | Government | Decreasing the energy expenses in public administration sector. | 21/08/2020 | The "Law on Energy Performance Contracts in Public Sector" has been approved by the Parliament in 2018. This regulation outlines the principles and methodologies of the contracting process. | https://www.resmigazete.gov.tr/eskiler/2020/08/20200821-31.pdf Accessed 8 September 2020 |
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| Turkey | National | Fossil conditional | Increased Special Consumption Tax for vehicle purchases | Mobility | Multiple fossil | Increased fossil fuel taxation | 30/08/2020 | Energy use (all energy types, consumption in transport, household use, buildings etc) | Ministry of Treasury and Finance | Government | Increase budget revenue | 30/08/2020 | Special Consumption Tax (SCT) revenues constitute about 25% of total tax revenues in Turkey. 2019 numbers reveal that motor vehicle SCT revenues are 10% of the total SCT revenues (13.8 billion TL of 147.1 billion TL). In the first 7 months of 2020, SCT revenues over motor vehicles (16 billion TL) already amounts to 85% of the end-of-year target (18.9 billion TL). | https://www.resmigazete.gov.tr/eskiler/2020/08/20200830-1.pdf |
https://vergiyedair.com/2020/08/30/otomobilde-otv-duzenlemesi-ne-anlama-geliyor/ |
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| Turkey | National | Clean unconditional | 1 GW solar auction | Power generation | Solar | Government procurement (DT) | 03/07/2020 | Electricity generation | Ministry of Energy and Natural Resources | Government | Increasing solar energy production capacity by 1 GW | 19/10/2020 | Turkey’s Ministry of Energy and Natural Resources has officially published the details of its 1 GW solar auction on August the 3rd. The smallest project allowed under the tender is 10 MW in size, while the largest is 20 MW. The auction will be held over a four-day period between 19-23 October 2020, for projects located in 36 cities and across 74 grid connection points. The starting ceiling price in the auctions will be TRY0.3/kWh ($0.044/kWh), and the winners will receive a 15-year power purchase guarantee. | https://www.resmigazete.gov.tr/ilanlar/eskiilanlar/2020/07/20200703-4-10.pdf Accessed 11 August 2020 |
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| Turkey | National | Other energy | Amendment to the “Project Based Incentive Scheme” | Multiple sectors | Multiple energy types | New or extended regulation (IT... | 28/07/2020 | Energy use (all energy types, consumption in transport, household use, buildings etc) | Ministry of Industry and Technology | Government | To increase high-tech production capacity of critical sectors and decrease import dependency. | 28/07/2020 | In 2018, the Ministry of Industry and Technology has announced a "Project Based Incentive Scheme" under which 23 projects of 19 firms with a total investment volume of $135 billion were entitled to receive incentives in terms of tax reductions, employment and energy subsidies (50% of total energy bill to be met by the government) and other financial support. Among these projects there is one for developing integrated solar panel development with ingot and solar cell production. However, also petrochemical industry and refineries are recipient of this incentives. The new amendment extends energy subsidies to the projects with partial completion as well. Initially only the completed projects were eligible for this subsidy. | https://www.resmigazete.gov.tr/eskiler/2020/07/20200728-9.htm Accessed 3 August 2020 |
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| Turkey | National | Clean unconditional | Renewable Power Purchase Agreements | Power generation | Multiple renewable | Uncategorized | 23/07/2020 | Energy use (all energy types, consumption in transport, household use, buildings etc) | Energy Market Regulatory Authority | Government | Enabling willing consumers to opt for renewable energy purchase | 01/08/2020 | Turkey is introducing a 'green tariff' to encourage the use of domestic renewable energy and to direct citizens with high environmental awareness to renewable energy consumption. As of August, the special tariff will be available to consumers who want to use electricity produced solely from renewable energy sources. The prices will vary between 79.25 and 91.46 cents TRY per kilowatt-hour, depending on the consumer group. | https://www.resmigazete.gov.tr/eskiler/2020/07/20200724-24.pdf Accessed 27 July 2020 |
https://www.dailysabah.com/business/energy/turkey-to-offer-green-only-power-tariff-as-of-august Accessed 27 July 2020 |
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| Turkey | National | Fossil unconditional | Increased retail loans for housing, launched by the public banks, with no energy efficiency requirem... | Buildings | Multiple fossil | Loan (Hybrid) | 9391477839.5326 | 01/06/2020 | Energy use (all energy types, consumption in transport, household use, buildings etc) | Public banks | Public finance institution | To revitalize the housing market | 01/06/2020 | 65900000000 | 65900000000 | 9391477839.5326 | During the COVID-19 times, easing on the housing credits is announced in the first stimulus package on March 17th. Public banks started to provide low interest housing loans since the beginning of June. The disbursed amount covers the period starting between June (date of entry into force)-September (the latest available data). We are categorising this policy here is "fossil unconditional" based on that, unlike energy efficiency and renovation policies, this one has no conditions attached, hence ends up benefitting the fossil fuels industry. During the beginning period of the loan provision, a 12 month deferral was also provided along with low interest rates. A revision to this package on August 7, has cancelled the 12 month deferral and also the interest rates for second-hand housing loans have been on the rise. | https://www.sozcu.com.tr/2020/ekonomi/konut-kredilerinde-rekor-artis-uc-haftada-19-milyar-tl-5908804/ Accessed 6 July 2020 |
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| Turkey | National | Fossil unconditional | Discount by Turkish Petroleum Pipeline Company (BOTAŞ) on the price of natural gas supplied to elec... | Power generation | Gas and gas products | Underpricing of govt-owned goo... | 30/06/2020 | Electricity generation | Turkish Petroleum Pipeline Company | SOE | Reducing the energy costs imposed on the industry | 01/07/2020 | The price of gas sold to power plants that produce electricity from natural gas has been reduced by 12.5 percent. Industry and commercial subscribers also received a 9.8 percent discount. | https://www.botas.gov.tr/Sayfa/2020-yili-temmuz-ayi-dogal-gaz-toptan-satis-fiyat-tarifesi/501 Accessed 30 June 2020 |
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| Turkey | National | Fossil unconditional | Postponement of collection of electricity and natural gas consumption fees due to natural disasters | Multiple sectors | Multiple energy types | Budget or off-budget transfer ... | 10/06/2020 | Energy use (all energy types, consumption in transport, household use, buildings etc) | Ministry of Energy and Natural Resources | Government | n/a | 01/01/2020 | 01/06/2020 | Due to the COVID-19 pandemic, the Ministry of Energy and Natural resources will cover the financial costs resulting from the postponement (up to one year maximum) of accrued electricity and/or natural gas bills, excluding the principal amount. This policy has been classified as "fossil unconditional" because over 70% of the energy mix in Turkey is fossil fuels-based. | https://www.resmigazete.gov.tr/eskiler/2020/06/20200610-10.htm Accessed 17 June 2020 |
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| Turkey | National | Fossil unconditional | Requirement for underground coal miners to work in shifts in public mines with full payment and a pa... | Resources | Coal | Budget or off-budget transfer ... | 03/03/2020 | Exploration or production or processing or storage or transportation | Turkish Hard Coal Enterprises | SOE | n/a | 01/04/2020 | In response to COVID-19 outbreak, Turkish Hard Coal Enterprises (TTK) has required the coal miners working in public mines to work in 15 day shifts, with 15 days of paid leave. Then, effective from April 1st until June 1st, TTK halted its production. Starting from June 1st, TTK has resumed its coal mining activity with a 3 shift / day working schedule. | https://www.aa.com.tr/tr/turkiye/turkiye-taskomru-kurumu-yeniden-uretime-basladi/1860445 Accessed 8 June 2020 |
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| Turkey | National | Fossil unconditional | Postponement of exhaust emission measurements for 3 months | Mobility | Oil and gas | Regulatory rollback or non-gov... | 03/04/2020 | Energy use (all energy types, consumption in transport, household use, buildings etc) | Ministry of Transport and Infrastructure | Government | n/a | 03/04/2020 | 07/07/2020 | For citizens whose exhaust gas emission measurement period has expired and who would not be able to fulfill this obligation within 3 months that this regulation is valid, it will be possible to complete it within 45 days from the end of this period. | https://www.resmigazete.gov.tr/eskiler/2020/04/20200403-6.htm Accessed 7 June 2020 |
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| Turkey | National | Fossil unconditional | Support policies for the oil sector | Resources | Oil and gas | Regulatory rollback or non-gov... | 29/04/2020 | Exploration or production or processing or storage or transportation | Ministry of Energy and Natural Resources | Government | To contribute to reducing dependence on external energy sources | 29/04/2020 | 01/11/2020 | Based on the critical role that national oil and natural gas production plays in Turkey's energy independence and employment creation, share payments to the government ('State share payments') and filing deadlines were extended. License liabilities (drilling, etc.) were also postponed for 6 months. | http://www.mapeg.gov.tr/Duyurular/2904_duyuru.aspx Accessed 2 June 2020 |
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| Turkey | National | Fossil unconditional | Support for underground mines to ease financial losses due to increased costs | Resources | Coal | Budget or off-budget transfer ... | 49878865.612085 | 24/03/2020 | Exploration or production or processing or storage or transportation | Ministry of Energy and Natural Resources | Government | Increase employment and reduce the costs of production in the sector | 02/06/2020 | 350000000 | For 10 000 underground mineworkers who meet the conditions as listed in the Presidential Decree (date 24/3/2020 -- No:2282) a support payment of 350 million TL will be disbursed each year. The support amount is calculated per employee. Its design motivates higher employment in the sector | https://www.resmigazete.gov.tr/eskiler/2020/03/20200325-2.pdf Accessed 2 June 2020 |
https://www.enerjigunlugu.net/madencilikte-destek-odemeleri-basladi-37672h.htm Accessed 2 June 2020 |
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