Türkiye: Nexus of green growth and innovation

Türkiye is emerging as one of the most dynamic hubs for sustainable investment, combining ambitious climate commitments with high-growth opportunities in renewable energy, advanced mobility, and circular economy solutions. Structural reforms, investor-friendly platforms, and targeted incentive schemes have positioned the country as a preferred destination for international capital seeking both resilience and strong return.

Through sweeping structural reforms and ambitious climate policies, Türkiye has created an investment environment that combines regulatory certainty with exceptional growth opportunities across various sectors since 2003, under the leadership of President Recep Tayyip Erdoğan. Platforms such as the Coordination Council for the Improvement of the Investment Environment (YOIKK) and the Investment Advisory Council ensure that regulatory progress is not static but rather evolves continuously based on investor feedback.

Over the past two decades, Türkiye has evolved from a traditional manufacturing hub into one of Europe’s most dynamic destinations for green investment. The reform agenda has continued with even greater momentum, given recent measures that include the introduction of a Climate Law aligned with Türkiye’s 2053 Net Zero target, GDPR- compliant data protection rules, and streamlined approvals for renewable energy projects. The Climate Law also introduces a national Emissions Trading System (ETS), providing transparency and market-based incentives for emission reductions while supporting alignment with the EU’s Carbon Border Adjustment Mechanism (CBAM).

This framework not only mitigates the risk of double carbon costs for exporters but also enhances Türkiye’s integration into European value chains. Additionally, Türkiye’s Foreign Direct Investment (FDI) Strategy for 2024-2028 places sustainability as its central focus, leveraging Climate FDI to promote carbon reduction and build economic resilience. The Investment and Finance Office of the Presidency of the Republic of Türkiye, also known as Invest in Türkiye, plays a pivotal role in this process, spearheading FDI promotion efforts, enhancing investor facilitation, and ensuring that sustainability-oriented investments find a predictable and competitive environment. Together, these initiatives underline Türkiye’s commitment to competitiveness and predictability—cornerstones of investor confidence.

Türkiye’s renewable energy sector exemplifies the country's strategic positioning in the clean technology space. With over 73 GW of installed renewable capacity, the country ranks 7th in Europe for both solar and wind capacity, and 4th globally in geothermal capacity. The Turkish government’s medium-term plan is ambitious: reaching 120 GW of combined solar and wind capacity by 2035 and ensuring renewables account for more than 55 percent of total power generation.

Complementing this expansion, over 30 GW of battery storage projects have already been allocated, positioning Türkiye one of Europe’s most active energy storage markets. Beyond generation, Türkiye has also become a manufacturing powerhouse for renewable energy equipment. In wind, a robust ecosystem now produces blades and towers while moving up the value chain to generators and gearboxes. In solar, Türkiye has become a leading global panel producer, rapidly scaling its photovoltaic (PV) cell production.

These developments are supported by localization policies that reduce import dependency, narrow the current account deficit, and create employment while expanding export opportunities across neighboring markets.

The transformation is perhaps most visible in e-mobility. Including Togg, Türkiye is home to 13 automotive OEMs, of which eight are multinationals. With BYD’s investment, this number will rise to nine. Türkiye’s automotive industry boasts significant production capacity, with realized production reaching 1.4 million units in 2024. The sector also exported more than 1 million vehicles, generating USD 37.2 billion in export value. Exported vehicles accounted for 74 percent of total production, showing the sector’s strong export orientation. In the domestic market, sales set a record in 2024 with over 1.23 million vehicles sold; domestic models accounted for 360,795 units (29.1 percent) while imported vehicles made up 877,714 units (70.9 percent).

Homegrown champion Togg leads the EV market with a USD 2 billion facility and an annual capacity of 175,000 units. After launching its T10X SUV in 2023 and T10F Sedan this year, Togg is now preparing for exports and new models while targeting one million vehicles across five models by 2030. International manufacturers are equally committed to Türkiye's EV future.

Ford Otosan has invested USD 3 billion to produce Europe's best-selling commercial electric vehicles, while BYD has committed USD 1 billion for a facility in Manisa with an annual capacity of 150,000 units. Renault Group plans USD 400 million in investments for four new hybrid and EV models and EV lines, and Hyundai will begin EV production in 2026.

The ecosystem extends to infrastructure. As of August, Türkiye has nearly 34,000 public charging sockets, with ultra-fast chargers more than doubling year-on-year. Government incentives and supportive policies have encouraged private investment, driving the rapid expansion of EV charging infrastructure. With one charger for every nine EVs, Türkiye now ranks among Europe’s leaders in charging accessibility.

As a result, Türkiye’s EV market has expanded at an extraordinary pace, growing from just 844 units sold in 2020 to over 105,000 in 2024. In the first half of 2025 alone, sales reached nearly 86,000, giving EVs a 17.6 percent share of all passenger car sales.

Underpinning these shifts is the HIT-30 Program, Türkiye’s flagship initiative for high-tech investment. This strategic program targets 30 key areas across eight sectors, including green energy and electric vehicles, with one of the world's most generous incentive packages with tax and customs duty exemptions, substantial machinery and energy support, and targeted talent development programs.

Specifically, for EVs, HIT-30 allocates USD 5 billion to scale production capacity to one million units annually, reinforcing Türkiye’s role as a regional hub for clean mobility solutions.

Beyond energy and mobility, Türkiye’s sustainability agenda is anchored in the Zero Waste Program, launched in 2017 under the leadership and patronage of First Lady Emine Erdoğan. This program, deeply embedded in national policies and recognized by the United Nations, has become a global model now adopted worldwide. Through Türkiye's active participation at the UN level, March 30 was declared the International Day of Zero Waste in 2022, and the UN Zero Waste Advisory Board was established in 2023, further cementing the country's leadership in this critical area.

The program has already delivered tangible results. By 2024, the national waste recovery rate had reached 36%, corresponding to 74.5 million tons of materials recovered since 2017. These efforts have prevented nearly 150 million tons of CO₂ emissions, saved 227 billion kWh of energy and 1.7 trillion liters of water, and spared 552 million trees from being cut down. Today, more than 205,000 buildings and facilities have established Zero Waste Management Systems, while 25 million citizens have been trained and engaged in the program.

Importantly, the initiative has stimulated growth in upcycling industries—for example, turning construction debris into new building materials, transforming textile leftovers into fashion and home-decor products, and converting organic waste into high-value compost and biogas. Together with innovations in waste-to-energy and sustainable packaging, such investments highlight how Türkiye links waste reduction to industrial competitiveness, proving that environmental responsibility and profitability can advance hand-in-hand. Looking ahead, Türkiye aims to raise the recovery rate to 60 percent by 2035 and 70 percent by 2053, ensuring long-term alignment with its Net Zero vision.

For global investors, Türkiye offers more than market potential. It provides a nexus where stability, strategic location, talent, innovation, and high-growth sectors align. Connecting Europe, Asia, and the Middle East, the country serves not only as a production base but also as a hub for sustainable capital flows.

Backed by a strong reform agenda, a steadily maturing green ecosystem, and forward-looking initiatives such as HIT-30, Türkiye is positioning itself not just as a participant in global transitions but as a driver of them. In renewable energy, e-mobility, and the circular economy, Türkiye signals to international investors that the groundwork for the future is already in place — and there is room for those ready to contribute.