Turkey to set sustainable aviation fuel mandates for airlines, suppliers
The move is aimed at complying with the U.N. International Civil Aviation Organization's emission reduction scheme that will become mandatory in 2027.
The new rules will oblige airlines to use sufficient SAF in international flights involving Turkey to meet the 5% emissions reduction goal. They will also require jet fuel suppliers in the country to procure SAF to meet that target, and domestic oil refiners Tupras (TUPRS.IS), opens new tab and Socar to start producing SAFs.
The authority will publish minimum emission reduction targets before the end of the third quarter each year, it said, adding it would penalise airlines and jet fuel suppliers for any non-compliance.
Airline operators must load 90% of the SAF they need for international flights in Turkey, the authority said.
Aviation is responsible for 2.5% of global energy-related CO2 emissions, according to the International Energy Agency.
Tupras, Turkey's largest oil refiner, aims to produce 20,000 metric tons of SAF at one of its major plants in 2026, the company said earlier this year.
It aims to lift production up to 400,000 tons by building a new unit at its Izmir refinery, pending a final investment decision.
DB Tarimsal Enerji, a local biofuel firm, also aims to produce 100,000 tons of SAF at a new plant.
Turkey's jet fuel demand fell 4% last year to 6.26 million tons, or 135,000 barrels per day, according to the country's energy regulator.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
10 hours ago
- Reuters
Turkey's economy returns to a 'positive cycle', finance minister says
ANKARA, July 27 (Reuters) - Turkey's economy has returned to a "positive cycle" after market turbulence in March, Finance Minister Mehmet Simsek said on Sunday. All financial indicators including gross foreign exchange reserves and the main stock index BIST100 (.XU100), opens new tab have returned to mid-March levels with the steps taken to manage the economy, Simsek said in a live interview with broadcaster Kanal 7. The detention of Istanbul Mayor Ekrem Imamoglu, President Tayyip Erdogan's main political rival, on March 19 triggered market turmoil that prompted an emergency interest rate hike and drained foreign currency reserves. Turkey's central bank this week cut its benchmark interest rate by a larger-than-expected 300 basis points to 43%, resuming an easing cycle that had been disrupted in March. Credit ratings agency Moody's on Friday upgraded Turkey's rating to "Ba3" from "B1," citing improving monetary policy credibility, easing inflation and reduced economic imbalances. Turkey's government expects that inflation will end the year "within the central bank's mid-point to high forecast range. We expect a figure below 29%," Simsek said. Turkish annual consumer price inflation slowed to 35% in June, extending its fall from a peak of around 75% in May 2024. The central bank's year-end inflation mid-point estimate currently stands at 24%, in a forecast range of 19% to 29%. Turkish economic growth has remained below forecasts in recent months and there is a "high probability" of a limited deviation from the budget revenue target, Simsek said. Based on its three-year policy roadmap published last September, the government predicts 4.0% gross domestic product growth this year. According to the median forecast of 34 economists in the July 18-23 Reuters poll, growth in Turkey's GDP is expected to be 2.8% this year, slower than 3.2% in 2024.
Reuters
3 days ago
- Reuters
Turkish cenbank returns to easing with big 300-point rate cut
ISTANBUL, July 24 (Reuters) - Turkey's central bank cut interest rates by 300 basis points to 43% on Thursday, more than expected, resuming an easing cycle that had been disrupted by political turmoil earlier this year, as markets have since calmed and disinflation continued. Going forward, the central bank said it would determine the "step size" of future monetary easing "prudently" and on a meeting-to-meeting basis. It also lowered the upper band of its rate corridor to 46% from 49%. The lira currency remained stable after the decision at 40.48 to the dollar. All but one of 17 economists in a Reuters poll forecast it would cut its benchmark one-week repo rate (TRINT=ECI), opens new tab, with predictions ranging from 42.50% to 44.50% among those expecting a cut. The bank hiked the policy rate to 46% from 42.5% in April, reversing an easing cycle that had begun in December, following market volatility over the arrest in March of Istanbul Mayor Ekrem Imamoglu, who is President Tayyip Erdogan's main rival. The bank said the underlying inflation trend remained flat in June and it anticipated a "temporary rise" in monthly inflation this month due to one-off factors. "Recent data indicate that the disinflationary impact of demand conditions has strengthened," the policy committee said. It will set policy "taking into account realized and expected inflation, and its underlying trend in a way to ensure the tightness required by the projected disinflation path," it added. "The step size will be reviewed prudently on a meeting-by-meeting basis with a focus on the inflation outlook". Commenting on this, Kieran Curtis, head of EM local currency debt at fund manager Aberdeen, said "It doesn't look like they will automatically do 300 bps next time." Annual inflation dipped to 35.05% in June, having fallen consistently from a peak of 75% in May last year. The bank's latest survey of market participants' expectations showed inflation was seen at 29.66% at end-2025. Most economists expect easing to continue in the months ahead, with the policy rate falling to 36% by the end of 2025, according to the Reuters poll. The tightening in recent months boosted investor confidence, with foreign holdings of lira-denominated bonds up to about 7% from near 5% after the mayor was arrested and jailed. Political risks remain on investors' radar. The lira and bonds weakened this month after the detention of opposition mayors in Adana, Adiyaman and Antalya in a corruption probe. Prosecutors say the arrests are anti-graft measures, but many see them as politically motivated moves against the opposition party CHP in a crackdown that has seen more than 500 detained in just nine months. "To establish economic confidence we need to see political tensions fading, and that has not yet happened," said Selva Demiralp, professor of economics at Koc University. "It remains the biggest risk and complicates the central bank's plan to move forward," she said, noting a Koc survey, opens new tab in July that shows opposition voters have far higher inflation expectations than those of Erdogan voters.
Reuters
3 days ago
- Reuters
EU starts surveillance of scrap metal trade as supplies decline
BRUSSELS, July 24 (Reuters) - The European Commission has started monitoring imports and exports of scrap metal including steel, aluminium and copper after stark industry warnings of shortages and the risk of smelter shutdowns, it said. EU smelters have been struggling for some time to secure supplies of scrap metal, a major input and an integral part of the EU's push to reduce carbon emissions. Much of the scrap is exported to Asia and Turkey. U.S. President Donald Trump's tariffs on primary steel and aluminium have exacerbated the problem as dealers have started selling scrap aluminium to U.S. smelters. "The EU is experiencing a decline in metal scrap availability ... The introduction of a 50% tariff by the United States on a wide range of steel and aluminium products (excluding scrap) may further worsen this issue," the Commission said in a statement on Wednesday. The Commission will decide what action to take by the end of September based on the data. Meanwhile, duties targeting exports to the U.S. could take effect sooner if the EU fails to reach a trade agreement with Trump and decides to retaliate with countermeasures.
