What Does the Climate Change Law Mean for Your Company?

The climate change law, covers a process that regulates the strategies, future, and essentially all business practices of your company.

In this article, we want to discuss the legal obligations of the climate change law that encompass a critical process for your company and our world, and how your company can comply with this process.

What is the Climate Change Law in Brief?

Understanding the Climate Change Law

The law defines the legal regulations necessary to achieve sustainable development goals. The general purpose of the law is to reduce greenhouse gas emissions to limit the effects of global warming. It aims to reach the international regulations necessary to keep global warming limited to 1.5 °C, to first minimize the consequences of climate change and then aim for net-zero emissions.

How Did It Start?

By ratifying the Paris Agreement, Turkey has joined international cooperation and formalized its commitments to combat climate change. It is subsequently taking steps that include emission reduction and adaptation strategies to climate change by implementing the National Climate Change Action Plan, and in this article, we explain how this agreement and plan change companies' policies.

Globally, the European Green Deal is a policy package aimed at making the European Union a climate-neutral continent, encompassing policy measures and targets in various fields such as environment, climate, economy, energy, agriculture, transportation, industry, and innovation. In the United States, various federal and state-level laws and regulations support efforts for clean energy and combating climate change.

Highlights

Pioneering countries in this area set emission reduction targets covering specific periods, which include individuals as the smallest building blocks of society and their companies where all economic cycles occur. They not only set these targets but also commit to achieving them internationally. They create incentives for transitioning to renewable energy , prioritizing companies and industries accordingly. They provide the opportunity to trade carbon emissions through carbon markets , establish the basis for carbon tax with carbon pricing , and thus ensure a sort of penalty for high-emission organizations.

The Objective of the Climate Change Law in Turkey

The Turkish Climate Law is expected to come into effect in 2024. With the studies on the climate law in Turkey, it aims to combine Turkey's climate change and Green Deal compliance efforts to achieve a "net-zero" emissions target by 2053, especially focusing on energy for green transformation in Turkey. Additionally, it includes measures such as improving and increasing carbon sinks like forests, establishing an emissions trading system, supporting clean production and green investments of industrialists with revenues obtained from carbon pricing mechanisms, ensuring a fair transition, and facilitating the participation of disadvantaged groups in the processes.

What Awaits Your Company?

When we scrutinize the responsibilities of companies, a serious workload regarding Compliance Reporting awaits you. Companies will now bear greater legal responsibilities in achieving emission reductions and sustainability goals. In these challenging processes, they will need sustainability calculations, consultants, and platforms, and subsequently, they will need to plan their reduction steps.

Complying with the climate change law means investing in new technologies and transitioning to renewable energy sources. Initially, this may require high costs. However, these investments are also known to reduce costs in the long term. Costs and investment plans are definitely among the first plans that need to be changed according to the existing laws.

Significant changes in operational processes await you. Because operational processes encompass all events from the production of a product, packaging, supply chain, to the end-user. It is crucial to analyze and report every step in these processes comprehensively and in compliance with standards since this process is particularly mandatory for companies with corporate clients.

There is a need to keep up with this order in the world. Otherwise, you will face significant reputational loss and financial liabilities . To avoid this, it is necessary to be well-informed about the outputs of international agreements such as the Paris Climate Agreement and to closely follow your country's steps regarding this issue.

Consumers are becoming more aware, and actions are now driven by social responsibility and future considerations. Market and Consumer Behaviors are changing. Companies will have to reshape their products and services to adapt to this changing demand. For example, the need for sustainable products, recyclable packaging, and environmentally friendly designs has become increasingly important.

What is CarbonSmart doing?

It offers technological solutions that allow you to manage and reduce your carbon footprint in accordance with the regulatory requirements and standards.

To get detailed information about our solutions, you can contact us.