Green Transformation in Türkiye's Industry: A New Competitive Model Backed by Incentives

Green transformation in industry is a transformation process that reduces the use of energy, water and raw materials in production processes, lowers waste and emissions, and makes production low-carbon and resource-efficient. In short, this approach is a model for producing more value with fewer resources. But this transformation is no longer only an area of environmental improvement; it is a strategic production model that transforms the cost structure of businesses, reduces their operational risks and determines their competitiveness.

In Türkiye this transformation is now driven not only by market expectations but directly by public policy and the regulatory framework. The Yeşil Dönüşüm Programı (Green Transformation Programme), run by the Sanayi ve Teknoloji Bakanlığı, was established to support the transition to resource-efficient and low-carbon production in industry. The programme’s legal basis is defined by the Yeşil Dönüşüm Programı Uygulama Usul ve Esasları Tebliği, published in the Resmî Gazete dated 26 July 2024, number 32613.

The programme rests on policy at a higher level. The “Yatırımlarda Devlet Yardımları Hakkında Karar”, which entered into force with Presidential Decision number 9903 dated 29 May 2025, brought green transformation investments within the incentive system. This structure has made low-carbon production in industry a strategic objective, in alignment with Türkiye’s 2053 Net Zero Emissions Target, the 12th Development Plan and the Medium-Term Programme. State policy now points in a clear direction: industry that produces more efficiently and with lower carbon will be supported.

The programme works differently from a classic incentive application. The process is run directly under the coordination of the Sanayi ve Teknoloji Bakanlığı Stratejik Araştırmalar ve Verimlilik Genel Müdürlüğü, and applications are received through the Programme Portal. The system is not permanently open; the Ministry issues calls in particular periods. Which sectors may apply, and on what conditions, is announced in those calls.

An application is not simply an investment file. The company must submit a Green Transformation Roadmap Report covering at least 5 years. That report contains current-state measurements, an inefficiency analysis, performance targets and the technical transformation investments to be implemented. The application is made on the company’s behalf by a Green Transformation Leader, and a green transformation team of at least three people is compulsory.

Projects are assessed on technical rather than administrative grounds. Assessment is carried out by bodies selected from the Assessor List drawn up by the Ministry. Alongside accredited organisations, that list may include technical institutions such as TÜBİTAK Marmara Araştırma Merkezi and Türk Standardları Enstitüsü. Assessment is based on the alignment between the roadmap and the project’s targets, the contribution of the selected technical applications to those targets, and the measurability of the performance indicators.

In the field, the first step of transformation is measurement. Energy/product, water/product, waste/product and emission/product values are determined. Areas of inefficiency are then identified: processes consuming excess energy, water losses, recoverable waste, raw materials with high wastage. Transformation is the reduction of these losses.

Process and technology improvements then come into play: energy-efficient equipment, waste heat recovery, closed-loop water systems, automation and digital monitoring, raw material optimisation. These applications are generally based on energy efficiency and resource efficiency studies. Process optimisation is also carried out with reference to international good practice and Best Available Techniques (BAT/MET).

Waste management is a shift from a linear model to a circular one. Waste is not a disposal burden but a resource that can be recovered. Using by-products and increasing the proportion of recycled inputs is what the circular economy means in industry.

This transformation process is monitored continuously. In the final measurement, the targets are expected to be achieved at a rate of at least 75%. Successful facilities receive the title of Green Transformation Centre, while unsuccessful projects may be removed from the programme. The system is not only support; it is performance discipline.

So why is this now a matter of competition? Because energy and raw material efficiency directly reduce costs. Businesses with weak carbon performance face the risk of losing market share in global markets. Financial institutions are also including environmental performance in credit assessment.

Carbon-intensive production now means an invisible tax. The cost of carbon is the new generation of competitive parameter in industry.

In conclusion, green transformation is not a corporate social responsibility heading. It is a strategic transformation defined by regulation, supported by the incentive system and determining competitiveness.