As Türkiye prepares to host the UN climate conference COP31, a new energy policy review by the International Energy Agency (IEA) provides a timely assessment of the country’s progress towards a more secure, affordable and sustainable energy future. The report recognises important advances in energy efficiency, renewable energy and climate governance, but also identifies significant challenges, particularly the continued reliance on coal, rapidly increasing energy demand and the need to translate long-term climate commitments into effective policies.
Türkiye occupies an important position in international energy markets, connecting Europe, the Middle East and the Caspian region. Its economy and population have grown rapidly, driving increasing energy consumption and dependence on imported fossil fuels. Against this background, energy efficiency is particularly important, offering opportunities to strengthen energy security, improve industrial competitiveness, reduce household energy costs and limit greenhouse gas emissions.
Climate ambition and the reality of rising emissions
Türkiye has committed to achieving net-zero greenhouse gas emissions by 2053. Its first Climate Law, adopted in July 2025, represents an important development, establishing a legal framework for climate action and a national emissions trading system.
However, the IEA highlights the challenges of reconciling these commitments with continued growth in energy consumption and emissions. Türkiye’s greenhouse gas emissions reached approximately 585 million tonnes of CO₂-equivalent in 2024, and its climate strategy envisages emissions peaking only in 2038.
The country’s updated nationally determined contribution, submitted in November 2025, establishes a target of limiting emissions to 643 million tonnes of CO₂-equivalent in 2035. This represents an increase over 2024 emissions, illustrating the considerable distance still to travel towards the 2053 net-zero objective.
Coal remains particularly problematic. In 2024, it accounted for one-quarter of Türkiye’s total energy supply and more than one-third of electricity generation. Türkiye was Europe’s largest coal consumer in 2025, consuming approximately 120 million tonnes. The IEA recommends establishing a framework for an orderly and just coal transition, including support for affected communities.
Energy efficiency: Progress, but is the ambition sufficient?
One of the report’s most encouraging findings concerns Türkiye’s achievements in energy efficiency.
Since adopting its Energy Efficiency Law in 2007, Türkiye has developed increasingly comprehensive policies covering buildings, industry, transport and energy supply. Its first National Energy Efficiency Action Plan, covering 2017–2023, delivered cumulative energy savings of 1,030 petajoules, exceeding the original target.
According to the IEA, investments of USD 8.5 billion during this period contributed to avoiding approximately 69 million tonnes of CO₂-equivalent emissions and creating nearly 45,000 jobs. The Turkish government estimates that every dollar invested generated four dollars in returns.
The rate of improvement in energy intensity also increased substantially, from 1.2% annually during 2011–2017 to approximately 3% annually during 2017–2023.
Türkiye’s second National Energy Efficiency Action Plan, covering 2024–2030, envisages USD 20.2 billion in investment, cumulative energy savings exceeding 1,500 petajoules and emissions reductions of approximately 100 million tonnes of CO₂.
Yet there is a striking contradiction. The government’s objective of reducing energy intensity by 15% between 2024 and 2030 corresponds to an annual improvement of approximately 2.3%, below the rate achieved during the preceding action plan.
This raises an important question ahead of COP31: should Türkiye be aiming to accelerate energy efficiency improvements rather than accepting a slower rate of progress?
Industry: Energy efficiency and competitiveness must go together
Industry accounts for approximately 35% of Türkiye’s final energy consumption and plays a central role in the economy. Energy-intensive sectors such as steel, cement and petrochemicals remain heavily dependent on fossil fuels, while less energy-intensive industries, including textiles, automotive manufacturing and food processing, face their own challenges in accessing finance and technical expertise.
The IEA recommends making greater use of Türkiye’s organised industrial zones as one-stop shops for energy efficiency. These zones could help smaller and less energy-intensive companies identify opportunities, access finance and implement projects that would otherwise be difficult to undertake individually.
This is particularly relevant as Türkiye prepares to introduce emissions trading and its exporters face growing pressure to reduce their carbon footprints, including through the European Union’s Carbon Border Adjustment Mechanism.
The IEA argues that energy efficiency, carbon pricing and industrial competitiveness should be addressed through a coherent and integrated policy framework rather than as separate challenges.
Buildings: An opportunity to combine energy efficiency and resilience
Buildings account for approximately 36% of Türkiye’s final energy consumption. Much of the existing building stock predates modern energy performance requirements, while earthquake risks create an additional challenge.
The IEA identifies a particularly important opportunity to combine energy efficiency renovations with seismic strengthening. Integrating the two can reduce transaction costs, improve investment returns and deliver wider social and economic benefits.
The report calls for greater emphasis on residential renovation, supported by scalable financing mechanisms, rather than concentrating primarily on public buildings.
Türkiye also has considerable geothermal resources and opportunities to develop district heating and recover waste heat from industrial processes.
Renewable energy progress, but coal remains a challenge
Türkiye has expanded renewable electricity generation substantially. Renewables accounted for 43% of electricity production in 2025, and the government aims to increase their share to 55% by 2035.
However, the IEA emphasises that expanding renewable capacity must be accompanied by investment in electricity networks, storage, demand-side flexibility and market reforms. Energy efficiency and demand response will be essential in managing electricity demand growth and integrating greater shares of wind and solar generation.
At the same time, Türkiye’s plans to increase domestic coal production raise questions about the consistency of its energy security and climate objectives.
What does this mean for COP31?
Hosting COP31 gives Türkiye an opportunity to demonstrate how energy efficiency can contribute to energy security, economic competitiveness and climate action.
The IEA review shows that Türkiye already has a strong foundation of policies, institutions and practical experience. Its previous energy efficiency programme delivered substantial savings, emissions reductions and economic benefits.
However, the report also makes clear that further progress will require stronger implementation, improved access to finance, more ambitious renovation programmes, industrial transformation and a credible pathway away from coal.
As international attention turns to Türkiye, the central question is whether the country can build on its demonstrated achievements in energy efficiency to accelerate its energy transition and bring its near-term policies into closer alignment with its longer-term climate commitments.
You can download International Energy Agency, Türkiye 2026 Energy Policy Review here.
