What the world can learn from Türkiye’s energy transition strategy heading into COP31

Türkiye will host the annual UN Climate Change Conference, COP31, in November. Achieving the country’s goal of net-zero emissions by 2053 will require up to $165 billion of investment, with significant capital requirements from the public and private sectors, and its approach to the energy transition provides a useful test case for nations worldwide. Türkiye will rely on nuclear power and expanded renewable resources to reduce fossil fuel import dependency, but S&P Global sees tensions in meeting long-term decarbonization goals given the role of coal in the country’s energy mix.

Volatile foreign exchange risks also continue to weigh on attracting cheap and long-term foreign capital, regardless of asset fundamentals. The energy transition could become a commercial necessity, driven by international trade dynamics such as the EU’s Carbon Border Adjustment Mechanism. A stable regulatory environment and successful decarbonization are critical for maintaining export competitiveness.