Turkey's annual emission reduction efforts will be facilitated by sustainable energy development projects funded by voluntary carbon funds, with the number of these projects reaching 30 in the first quarter of 2008, resulting in a greenhouse gas reduction of approximately 5 million tons, equaling about 20 million euros in gains, if these energy companies engage in a carbon trading scheme, according to an international environmental organization's Turkey office. Yunus Arıkan, the senior project manager for the Turkey office of the Hungary-based Regional Environmental Center for Central and Eastern Europe (REC), says: "Based on information acquired by REC-Turkey, as of October 2007, there are nine projects in Turkey that have been involved in the voluntary carbon trade, which accounts for a total of 700,000 tons of carbon emission reduction annually. However, recently acquired data show the number of projects is 30, accounting for approximately 5 million tons in carbon emission reduction."

Speaking to Today's Zaman, Arıkan said both the number and volume of projects make Turkey one of the pioneering countries in this emerging market. He also said the fact that Turkey hosts the first "gold standard" verified emission reduction project globally qualifies Turkey for such a position, but that if Turkey is excluded from the world compulsory carbon market in the post-Kyoto period, it might lose these investments. The Turkish government has decided to ratify the Kyoto Protocol and will send a bill on the issue to Parliament, government spokesman Cemil iek said at a news conference on Monday. The Kyoto Protocol binds 37 industrialized countries to put limits on their greenhouse gases blamed for the rise in global temperatures. The Kyoto Protocol was signed in 1997 under the United Nations Framework Convention on Climate Change (UNFCCC). Countries which ratified it committed to reduce their emissions by an average of 5 percent from 1990 levels by 2012.

A total of 176 countries are signatory to the protocol, but concerned that its ratification before the completion of large-scale energy investments would lead to serious economic and social problems, Turkey chose not to sign. Contrary to the beliefs of most Turkish critics of Kyoto, ratifying the protocol, set to expire in 2012, will cost Turkey nothing. "Turkey has no emission reduction obligations, and it will incur none even when it is a party to Kyoto. As such, there will be no cost at all. Turkey will not be obliged to reduce gas emissions until after 2012," said Haluk dalga, the chairman of Parliament's Environment Commission. He also said if Turkey does not ratify the protocol, it will not be able to negotiate effectively in the post-Kyoto era. It is still unclear what obligations countries will assume post-2012 and that these will be determined in negotiations to be completed in 2009.

However, REC-Turkey warns that Turkey will not be eligible to join the Kyoto Protocol's flexibility mechanisms even if it signs it and that for the time being emission reduction projects in Turkey can only be pursued through voluntary carbon markets. "Voluntary markets in Turkey shall be designed so as to support Turkey's negotiations and efforts for the country to be considered a carbon seller country by hosting Clean Development Mechanisms (CDM) in the post-2012 period. Moreover, Turkey shall consider a more active role for the government in the voluntary carbon process so that the institutional framework and the process of monitoring, permission and registry issues might evolve into a DNA and registry system in the country in the post-2012 period," an REC-Turkey report stated. While China received sizable funds through CDMs to promote investments based on reduced carbon emissions, Turkey has been ineligible to receive them. Similarly, Turkey-based carbon certificates remain undervalued in international carbon markets.

Carbon emitting companies offset their pollution by purchasing credits from renewable energy investors, which in turn gain financial backing for their projects; trading is more profitable for countries that have ratified the Kyoto Protocol. Businessman and Wind Power and Hydro Power Plants Businessmen's Association (RESSİAD) President emit Tolga Bilgin said he was the first to start carbon emission trading in Turkey in voluntary markets, but complained of low prices. "Countries that signed the protocol can ask for at least 5 euros per ton, but it is only about 3 or 4 euros because CDMs and its standards do not apply," Bilgin said.

'Turkey's ratification of Kyoto is of global importance'

Sibel Sezer Eralp, the president of REC-Turkey, said when Turkey ratifies the Kyoto Protocol, it will contribute to developments on the global level in the post-Kyoto era. "Turkey's ratification of the Kyoto Protocol could even provide a more significant contribution to the international debate than Australia joining the Kyoto in 2007 because Turkey, with its own special circumstances, could bring a clear definition to the still unclear developed/developing countries definitions under the UNFCCC," she said.

As an Organization for Economic Cooperation and Development (OECD) country, Turkey was included in Annex I of the UNFCCC in 1992 and even in Annex II, the list of relatively advanced industrialized countries that have committed themselves to financial and technical transfers to developing countries. Following objections from Turkey, it was eventually removed from Annex II. But as a non-signatory to the original 1997 protocol, it was also not included in Annex B, freeing it from emission reduction commitments. At the end, Turkey was ranked as an "advanced developing country" making it comparable to those of other non-EU developing countries within the OECD.