Interactive: I-REC Redemption Trends in Turkey in 2023 and 2024

The International Renewable Energy Certificates system continues to see high redemptions in Turkey. As of 2024, the textile industry remains the largest sector for I-REC redemptions, demonstrating its commitment to sustainability, crucial given its substantial energy consumption and environmental impact.

In 2024, there was a notable rise in the redemption of I-RECs from the store office building and metal sectors, which jumped to the second and third positions, respectively, reflecting more awareness among these sectors.

While the store office building sector, which encompasses retail and commercial spaces, is increasingly acknowledging the importance of sustainability, the metal sector, traditionally known for its high energy demands and carbon emissions, is likely responding to regulatory pressures for greener practices, such as the Carbon Border Adjustment Mechanism, or CBAM.

This mechanism aims to combat carbon leakage and promote fair competition between EU and non-EU producers, making it particularly relevant for energy-intensive sectors like textiles and metals.

CBAM is intended to impose a carbon price on imports of certain goods from outside the EU. Turkish companies—particularly in the textile and metal sectors—must adapt to the changing landscape of carbon pricing and compliance to stay competitive in the European market. They will also need to consider how CBAM may impact their operations and market access.

Further reading: Global I-REC market update: Q4 2024 (Subscriber content)