European Green Deal Compliance Project Support

Öykü Su Sabancı co-authored this article.

The Ministry of Trade stated that sustainability and green transformation will determine the rules of trade with the European Union, Turkey's most important partner, in the near future. Therefore, the Decision on the Amendment of the Decision on Export Incentives No. 8191 ("Decision No. 8191") was published in the Official Gazette numbered 32469 and dated 23.02.2024, in order to ensure that our country's exports are not negatively affected by this transformation process and that we do not lose export markets.

Decision No. 8191 made amendments to the Decision on Export Subsidies ("Decision No. 5973"), which was enacted by Decision numbered 5973. The amendments made by Decision No. 8191 are explained below.

1. Supports for Green Deal Compliance Project

The definition of the "Green Deal Compliance Project" has been added as “a project aimed at conducting a needs analysis for companies to align with the European Green Deal”.

Pursuant to the Article 14 titled "Support for Green Pact Compliance Projects," companies will be provided with support at a rate of 50% for consultancy service expenses related to their green pact compliance projects, up to a total of 10 Million Turkish Liras over a period of 5 years.

2. Supports for Seasonal Fair

The definition and relevant provisions of the "Seasonal Fair" have been added with Decision No.8191. This decision defined seasonal fair as “only two versions of the same-named fair organized in the same country and industry within the same calendar year”.

Decision No. 8191 sets the maximum annual participation limit at ten (10) fairs. However, participation in seasonal fairs shall be considered as one (1) fair for the purpose of calculating the maximum fair participation limit.

3. Supports for Multichannel Chain Stores and Trademark Owners

The annual support cap for multichannel chain stores and trademark-holding companies has been increased to 180 Million Turkish Liras. With this adjustment, companies can receive support at a rate of 50%, up to a total of 180 Million Turkish Liras for a period of 5 years for expenses related to international trademark registration, renewal, protection, market research, reports, rent, promotion, and basic setup, concept, architectural work, decoration.

In the event of the termination of the 5 years of support, the support period for companies can be extended for an additional 5 years based on a performance evaluation conducted by the Ministry of Trade.

4. Supports Provided Under TURQUALITY

The annual support project limit, at a rate of 75% for exporters' associations under TURQUALITY has been increased to 12 Million Turkish Liras. Exporters' associations can benefit from promotional support for a maximum of two (2) projects simultaneously.

The support for The Turkish Exporters Assembly ("TİM"), exporters’ associations and regional associations, that solely represent their sectors will be provided at a rate of 75% and up to an annual amount of 22,500,000 Turkish Liras per project. TİM, exporters’ associations and regional associations, that solely represent their sectors, will be supported for a maximum of four (4) projects simultaneously.

Within the scope of support programs and project-based supports, it has been determined that TİM's TURQUALITY/trademark support program, green deal compliance project support, and support management systems' execution will receive a total cap of up to 250 Million Turkish Liras per year for employment, training, organization, promotion, and consultancy expenses.

You can access Decision No. 8191 from here and Decision No. 5973 from here.

* You can access the Turkish version of this article via this link.