Türkiye's Green Taxonomy is in force: what changes for SMEs?

The Türkiye Green Taxonomy Regulation entered into force on publication in the Official Gazette of 24 September 2026, issue 33380.¹ It was prepared by the Ministry of Environment, Urbanisation and Climate Change and is based on Climate Law No. 7552.¹³ Published six weeks before COP31, it gives Türkiye a common language for which economic activities count as environmentally sustainable.

What is a taxonomy?

A taxonomy is a classification system that decides whether an activity is "green". The activity list annexed to the regulation (Annex 1) covers 137 economic activities in 16 sectors.²⁴ On top of the activities in the EU taxonomy, agriculture and tourism, both important to Türkiye's economy, were added.⁴

The regulation sets six environmental objectives:¹⁴

1. Reducing greenhouse gas emissions
2. Adapting to climate change
3. Sustainable use and protection of water and marine resources
4. Transition to a circular economy
5. Pollution prevention and control
6. Protection and restoration of biodiversity and ecosystems

When is an activity "aligned"?

An activity is taxonomy-aligned only if it meets three conditions together:¹⁴

The technical screening criteria, setting the thresholds for "substantial contribution", will be set and regularly updated by the Climate Change Directorate under the Ministry. Fossil-fuel activities are excluded.³

Who must report?

This is the key detail for SMEs:

• Reporting is voluntary for companies. Businesses carrying out Annex 1 activities may report using the Directorate's templates.³⁴
• It is mandatory for financial institutions. Banks, brokerages, insurance and pension companies must report, but under a transitional provision the obligation starts on 1 January 2029.³⁴
• Reports are filed in the Online Taxonomy Management System within six months of the financial year-end and made public.³
• Indicators are based on the taxonomy-aligned share of revenue, capital expenditure and operating expenditure. Activities below 10% can be left out of reporting.³

What it means for SMEs

Even without a reporting duty, the taxonomy will reach SMEs through finance. According to the Ministry, banks and financial institutions may ask companies seeking green finance for taxonomy reporting.⁴ Minister Murat Kurum stressed that the regulation will ease industry's access to international green finance.⁴ As banks prepare their own reports for 2029, they will need data from suppliers and borrowers to measure the "green" share of their portfolios.

The regulation also defines greenwashing: creating, through advertising or marketing and without basis, the impression that a product or service contributes substantially to environmental objectives.³ Claims such as "eco-friendly" or "green" now have a measurable reference point.

What to do now

1. Find your activity in Annex 1. Check whether your main activity is one of the 137.²
2. Start collecting data. Energy use, emissions, water and waste are the first things the screening criteria will ask about.
3. Separate revenue and investment. Tagging which revenue and capex relate to green activities makes the alignment ratio easy to calculate later.
4. Review your environmental claims. Make sure statements on your website, catalogues and proposals are backed by evidence.
5. Follow the technical screening criteria. As the Climate Change Directorate publishes thresholds for your sector, talks with your bank get easier.

A regular sustainability report is one way to document your environmental performance. Publish it on this platform to reach customers, lenders and the press with a single link.