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 Faculty of Economics, Administrative and Social Sciences - iisbf@gelisim.edu.tr

International Trade And Business








 Where is Turkey in the Green Energy Transformation?


As it is known, energy, which has an important place in all areas of life, plays an important role in both social and economic development processes of countries. Increasing mass production, especially with the industrial revolution, has also increased the need for energy. While approximately 87% of the energy needed in the 1970s was met from fossil-based energy sources, it is stated that this rate is approximately 80% today. In the near future, this rate is expected to decrease even more.


There are both environmental and eco-political reasons for this decline. Political and political conflicts arising from the fact that fossil fuels are not distributed homogeneously on the earth are directing countries to alternative sources. This is the eco-political reason for the decline in fossil energy use. On the other hand, the concept of global warming, which emerged as the harmful gases released into the atmosphere during the use and production of fossil fuels threaten the earth. This indicates the environmental reason for the decrease in these energy sources.
 
Although the aforementioned negative effects of fossil fuels have been discussed for years, serious steps have been taken in this regard only in recent years. Today, the world is in the middle of the transition to clean energy. On the one hand, consumers demand clean energy, on the other hand, producers are willing to produce clean energy. The state, which is an important factor in ensuring the balance between the producer and the consumer, supports the green energy transformation by offering various supports and incentives in many countries of the world.
 
Today, many countries in the world, while determining their energy and economic policies, give priority to increasing alternative resources and create plans to develop this field. One of the countries where green transformation is most supported is China. Since the beginning of the 2000s, China has taken important steps in determining its strategies for renewable energy sources, both legally and politically, in its energy policies. As a result of these policies, today China has become the country with the highest increase in renewable energy, especially wind and solar energy.
 
The country's energy policies support that it is impossible to achieve long-term economic growth, social welfare and quality of life without environmental sustainability supported by renewable energy sources. On the other hand, Brazil is one of the countries supporting the green energy transformation. In order to support sustainable development within the framework of combating climate change and green energy transformation, legal initiatives such as the proposal to create a 'Green Protocol' for the use of renewable energy in the country, the establishment of the Work Council for Sustainable Development and the National Environment Fund have been started to be implemented.
 
Brazil is one of the countries where biofuels, which are a good alternative to fossil fuels, are used most intensively. There is a 25% additive of ethanol, which is a biofuel derivative, into the gasoline on sale in the country. The ethanol industry in the country was established with state planning and support. In this context, thanks to the ethanol ratio in gasoline determined by the government, the ethanol sector is protected and guaranteed.
 
Today, the EU, which is Russia's largest customer in natural gas imports, accelerates its renewable energy production and ranks first in renewable energy production as a result of the steps it has taken to support the green energy transformation. This situation will both reduce foreign dependency in the region and cause the spread of clean energy in the region. As of 2024, it is aimed that renewable energy will replace coal with a share of 18% in the EU. In addition, an increase of 7% is expected in electricity consumption until 2035, and it is predicted that the share of renewable energy sources will increase in meeting this increase.
 
So where is Turkey in the green energy transformation? Considering the geological structure of Turkey, it has a very diverse energy spectrum in terms of energy production. However, it represents an economy that is highly dependent on foreign energy production. When evaluated in terms of alternative energy sources, hydroelectricity is used the most, solar and wind energy lags behind.
 
Turkey has been implementing many policies in recent years in terms of energy transformation. The first example of these practices is given in 2001 as the 'Electricity Market Law' numbered 4628. Within the framework of this law, license exemption has been introduced for renewable energy-based generation facilities with a power of 500 kilowatts. In addition, supports such as VAT exemption in the purchase of investment equipment, exemption from customs duty in the import of investment equipment, income tax withholding exemption are provided. Although Turkey is a little late in realizing its energy transformation, it is taking quick steps towards catching up with the said transformation.
 
Assist. Prof. Başak ÖZARSLAN DOĞAN