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Efforts to combat climate change and achieve sustainable economic growth require companies to assess their operations not only in terms of financial performance but also with regard to their environmental impact and sustainability policies. This transformation has made the accuracy and transparency of companies’ disclosures concerning their environmental performance as important as the promotion of sustainable investments.

Türkiye’s new taxonomy regulatory framework establishes binding rules for identifying sustainable economic activities in compliance with the Climate Law No. 7552. It is helpful to indicate at the outset that potential effects of the Türkiye Green Taxonomy Regulation(the Regulation) will extend beyond formal reporting obligations to financing, investment due diligence, transaction documents and access to cross-border capital. The present article intends to highlight core features of the new Regulation.