On October 6, 2021, the bill that the agreement was approved was passed by the Turkish Grand National Assembly. However, although Turkey's request for transition to the developing countries class has not yet been approved by the United Nations, the Turkish Grand National Assembly accepted the agreement as a developing country. Turkey is expected to go through the approval process and attend the summit until COP26, which will be held in Glasgow in November. Although Turkey will not be able to benefit from the supports that developing countries benefit from, it is predicted that it will be able to reach some other financing resources that will support its green development.
What awaits us?
The keystone of green transformation is the generation of energy with clean sources. By obtaining 12% of its electrical energy from clean sources (solar and wind) in 2020, Turkey exceeded the world average of 9.6%, thus placing it in the fifth place among the G-20 countries. The basis of this success lies in the fact that Turkey's geographical conditions are quite suitable for clean energy production. Additionally, the installation costs of wind turbines and solar panels in Turkey have decreased by 50% compared to five years ago.
The increase in clean energy production will trigger a decrease in fossil energy imports. In addition, it will reduce the amount of tax that Turkish exporters have to pay within the scope of carbon regulations at the borders of the countries, regardless of the sector.
On top of that, due to the European Union's firm stand on the European Green Deal, Turkey's fulfillment of the declarations given to the Paris Agreement and its support for green development will strengthen our commercial ties with Europe. With the aforementioned agreement, the European Union aims to reduce greenhouse gas emissions by at least 50% by 2030, based on 1990, and intends to become a carbon neutral continent by 2050.
Economics Perspective
At the point we have come to regarding environmental problems, opinions on whether environmentally friendly growth and green investment are cost-effective are changing rapidly. The green economy and growth occur around low-carbon, resource-efficient and socially inclusive policies and economic activities. Some economic activities are far from being sustainable in the future, as the lowest carbon emissions are aimed to protect the environment. It is possible for the people employed in these fields of activity to be retrained and employed for the new sectors and fields of activity that are foreseen to be formed under the theme of green growth. In other words, people who lost their jobs due to green transformation can find jobs in new sectors that are expected to be formed by green transformation.
It is expected that green development and green transformation will bring along a number of goods and services. Countries that take an early position in the production of these goods and services will be able to both facilitate their own transformation processes and sell these goods and services to other countries that are transforming.
Another economic result will be experienced in the energy sector. As a result of the green transformation and the tendency towards renewable and clean energy, it is expected that the prices of fossil energy sources such as oil and coal will decrease. With the more active use of carbon trading, competition in the sectors will evolve and change.
R.A.Batuhan Mert Bozbağ
