Carbon Capture and Storage Projects in Turkey 2026: Complete Legal Guide for Investors and Energy Companies

Discover the legal framework for Carbon Capture and Storage (CCS) projects in Turkey in 2026. Learn about licensing, environmental compliance, project finance, carbon markets, ESG requirements, foreign investment opportunities, and legal risks.

Carbon Capture and Storage (CCS), also known as Carbon Capture, Utilization and Storage (CCUS), is increasingly becoming a critical component of global climate policy. As governments and industries pursue net-zero emission targets, CCS technologies are gaining attention as a solution for reducing carbon dioxide emissions from sectors that are difficult to decarbonize, including cement, steel, chemicals, refining, and power generation.

Turkey has begun integrating CCUS into its long-term climate and energy policies. The Turkish government has identified Carbon Capture, Utilization and Storage as a strategic priority within its climate transition framework and industrial decarbonization policies. The country’s Climate Change Mitigation Strategy and Long-Term Climate Strategy specifically recognize CCUS as a key tool for reducing unavoidable greenhouse gas emissions.

For foreign investors, infrastructure funds, industrial operators, energy companies, and technology developers, understanding the legal and regulatory landscape surrounding CCS projects in Turkey is essential before making investment decisions.

What Is Carbon Capture and Storage?

Carbon Capture and Storage refers to technologies that capture carbon dioxide emissions from industrial facilities and prevent them from entering the atmosphere.

The CCS process generally includes three stages:

• Carbon dioxide capture
• Transportation of captured CO₂
• Permanent geological storage

Some projects also include utilization components where captured carbon dioxide is used in industrial processes before final storage.

CCUS is increasingly viewed as an important decarbonization solution for sectors where emissions cannot easily be eliminated through renewable energy alone.

Why CCS Is Becoming Important in Turkey

Turkey faces increasing pressure to reduce industrial emissions while maintaining economic growth and energy security.

Several factors are driving interest in CCS projects:

• Net-zero commitments
• Industrial decarbonization requirements
• European carbon regulations
• ESG investment trends
• International climate obligations
• Export competitiveness

Turkey’s first Climate Law entered into force in 2025 and established the legal basis for a national emissions trading system (ETS), creating additional incentives for carbon reduction technologies.

Sectors Most Likely to Use CCS

Certain industries are expected to become primary users of CCS technologies.

Cement Industry

The cement sector is considered one of the most promising candidates for CCS deployment.

Carbon emissions from cement production result not only from energy consumption but also from unavoidable chemical reactions during clinker production.

Globally, cement manufacturers increasingly view CCS as essential to achieving net-zero targets.

Iron and Steel Industry

Steel production remains one of the largest industrial sources of carbon emissions.

CCS technologies may help reduce emissions where direct electrification remains challenging.

Refining and Petrochemicals

Refineries and chemical facilities often produce concentrated CO₂ streams suitable for carbon capture technologies.

Hydrogen Production Facilities

Blue hydrogen projects commonly integrate carbon capture systems to reduce lifecycle emissions.

CCS is expected to become an important component of future hydrogen infrastructure development.

Current Legal Framework for CCS Projects

Turkey does not yet have a dedicated Carbon Capture and Storage Law.

Instead, CCS projects are currently governed through a combination of:

• Environmental legislation
• Energy regulations
• Mining and subsurface laws
• Construction regulations
• Industrial permitting requirements
• Climate legislation

As the sector develops, more detailed CCS-specific regulations are expected to emerge.

Environmental Permitting Requirements

Environmental approvals are among the most important aspects of CCS project development.

Project developers may need to address:

• Environmental Impact Assessments (EIA)
• Water use permits
• Waste management approvals
• Air emissions permits
• Land use permissions

Environmental regulators will likely closely scrutinize CCS projects due to their long-term storage implications.

Failure to obtain appropriate permits can delay or prevent project implementation.

Geological Storage Considerations

The storage component is often the most legally complex element of a CCS project.

Developers must evaluate:

• Geological suitability
• Reservoir integrity
• Long-term monitoring requirements
• Leakage prevention measures
• Site closure obligations

Future regulations are expected to establish detailed standards for carbon storage site selection and operation.

Carbon Transportation Infrastructure

Captured carbon dioxide must be transported from emission sources to storage locations.

Transportation methods may include:

• Pipelines
• Rail transportation
• Marine transportation
• Truck transportation

Future infrastructure development may require dedicated legal frameworks governing carbon transportation networks.

International experience demonstrates that transportation infrastructure is often one of the largest challenges facing CCS deployment.

Carbon Markets and CCS Projects

The introduction of Turkey’s Climate Law and future emissions trading system is expected to significantly affect CCS economics.

A functioning carbon market may:

• Increase the value of emission reductions
• Improve project bankability
• Support carbon credit generation
• Enhance investment returns

The planned Turkish emissions trading framework may become a major driver of future CCS investments.

Foreign Investment Opportunities

Foreign investors may participate in Turkish CCS projects through:

• Direct project ownership
• Joint ventures
• Infrastructure investments
• Technology licensing
• Project finance arrangements

Potential investment areas include:

• Carbon capture facilities
• Storage infrastructure
• Transportation systems
• Carbon utilization technologies
• Carbon management services

Turkey’s strategic location and industrial base may create substantial opportunities as European carbon reduction requirements become more stringent.

CCS and ESG Compliance

Environmental, Social, and Governance (ESG) standards are increasingly influencing investment decisions.

CCS projects often support:

• Carbon reduction goals
• Climate transition strategies
• Sustainability commitments
• Industrial decarbonization

Many institutional investors now evaluate projects based on ESG performance in addition to financial returns.

Strong ESG credentials may improve access to financing and international investment capital.

Project Finance for CCS Projects

Carbon capture facilities often require substantial capital investment.

Common financing sources include:

• Commercial banks
• Development finance institutions
• Climate funds
• Infrastructure investors
• Green bonds
• Sustainability-linked loans

Financing institutions generally evaluate:

• Regulatory certainty
• Carbon pricing mechanisms
• Technology risks
• Long-term revenue streams

The success of future CCS financing in Turkey will likely depend on continued regulatory development and carbon market implementation.

Contract Structures Used in CCS Projects

Several contracts are typically required.

EPC Agreements

Engineering, Procurement and Construction contracts govern facility design and construction.

Carbon Transportation Agreements

These agreements regulate movement of captured carbon dioxide.

Storage Agreements

Storage contracts define rights and obligations regarding long-term carbon sequestration.

Technology Licensing Agreements

Many CCS projects depend upon proprietary technologies requiring licensing arrangements.

Proper contract drafting is essential to allocate risks and avoid future disputes.

Key Legal Risks

Investors should carefully evaluate potential legal risks.

Regulatory Risk

Future legislation may significantly affect project economics.

Technology Risk

Carbon capture technologies continue to evolve rapidly.

Environmental Liability

Long-term storage creates unique environmental obligations.

Infrastructure Risk

Transportation and storage infrastructure remains underdeveloped.

Market Risk

Carbon pricing and credit markets continue to evolve.

Effective legal due diligence can significantly reduce exposure to these risks.

CCS and European Carbon Border Adjustment Mechanism

The European Union’s Carbon Border Adjustment Mechanism (CBAM) is expected to affect Turkish exporters.

Industries with high carbon emissions may face increased costs when exporting to Europe.

CCS technologies may help Turkish manufacturers:

• Reduce carbon intensity
• Improve export competitiveness
• Manage CBAM exposure
• Meet European sustainability requirements

This is one reason why industrial CCS investments are receiving increasing attention.

Future Outlook for CCS in Turkey

The long-term outlook for CCS appears increasingly positive.

Recent developments include:

• Government climate strategies
• National climate legislation
• Future emissions trading systems
• Growing ESG investment demand
• International decarbonization pressures

Industry experts expect increased interest in CCS technologies during the coming decade, particularly within hard-to-abate industrial sectors.

As regulations mature and carbon markets expand, Turkey may become an increasingly attractive destination for carbon capture investments.

Frequently Asked Questions (FAQ)

What is Carbon Capture and Storage (CCS)?

CCS is a technology that captures carbon dioxide emissions from industrial facilities and stores them underground to prevent their release into the atmosphere.

Does Turkey have specific CCS legislation?

Currently, Turkey regulates CCS projects through various environmental, industrial, and climate-related laws rather than a dedicated CCS statute.

Which industries are most suitable for CCS projects?

Cement, steel, refining, petrochemicals, power generation, and hydrogen production are among the sectors most likely to benefit from CCS technologies.

How does Turkey’s Climate Law affect CCS projects?

The Climate Law establishes the legal basis for emissions trading and climate governance, which may improve the economics of future CCS investments.

Can foreign investors participate in CCS projects?

Yes. Foreign investors can generally participate through direct investments, joint ventures, project finance arrangements, and technology partnerships.

Will CCS help companies comply with CBAM requirements?

Potentially yes. CCS may help reduce carbon intensity and improve competitiveness for exporters affected by European carbon regulations.

Are CCS projects eligible for sustainable finance?

Many CCS projects may qualify for climate-related financing, ESG investment programs, green bonds, and sustainability-linked funding mechanisms.

Is CCS expected to grow in Turkey?

Yes. Government climate policies, industrial decarbonization needs, and international carbon regulations are expected to drive increasing interest in CCS technologies.

Legal Support and Contact Information

Carbon Capture and Storage projects involve complex environmental regulations, infrastructure development, project finance, carbon market compliance, ESG obligations, and long-term liability considerations. Early legal planning is essential for protecting investments and ensuring regulatory compliance.

Legal Support for CCS and Carbon Management Projects

Fırat Fesih Kaya Law

Phone: +90 312 434 22 22

Mobile: +90 532 769 22 22

Email: info@firatfesihkaya.av.tr

Address: Mevlana Boulevard No:221, Yildirim Tower No:148, 06520 Balgat, Cankaya, Ankara, Turkey

Our legal team advises foreign investors, energy companies, industrial manufacturers, infrastructure funds, project developers, and multinational corporations on Carbon Capture and Storage projects, climate regulations, emissions trading compliance, environmental permitting, project finance, ESG obligations, and cross-border energy investments throughout Turkey.