ALTERNATIVE FINANCING SOURCES FOR PROVINCIAL SPECIAL ADMINISTRATIONS: CARBON CERTIFICATES

Climate change is one of the most important phenomena threatening the World and Turkey. For decreasing of greenhouse gasses emissions, flexibility mechanisms were launched together with reduction responsibilities in the Kyoto Protocol. These are clean development mechanism, joint implementations and emission trading. The emission trading are executed on two different platforms, obligatory markets and voluntary markets. Turkey can benefit from only voluntary markets due to its position in the Convention. Fundamental of emission trading is to make a balance and to fill gaps between emitting sources and efforts of reductions. From this aspect, the emission trading offers new opportunities for the organizations both in public and private sectors, which are performing activities of emission reduction such as foresting and renewable energy. Taking its lawful authorities and privileges into account, provincial special administrations can create alternative financing sources for their projects, while they contribute to preserving the environment through emission reducing and trading activities. Moreover, the Paris Agreement went into force and after Turkey approves it in the Grand National Parliament, the whole country will benefit from all mechanisms. In order to reduce the greenhouse gas emissions that cause climate change, the Kyoto Protocol has also established flexibility mechanisms along with mitigation obligations. These are the clean development mechanism, joint execution mechanism and emission trade. Emissions trading is performed on two platforms as mandatory markets and voluntary markets. Turkey can benefit from the status should only voluntary market. The foundation provides opportunities for enterprises, institutions and organizations that carry out emission reduction activities such as emission trading, renewable energy and forestation, which are based on providing a balance between low emission generation and many emissions generating, closing the gap between emission generation and reduction, and encouraging reduction.

Keywords

Provincial Special Administrations, Alternative Financial Source, Carbon Certificate, Emission Trade