Background
A circular economy is a paradigm shift that focuses on reducing waste, conserving resources, and minimizing environmental impact by keeping products and materials in use for as long as possible. As such, a circular economy is an important part of slowing climate change and regenerating nature by preventing biodiversity loss.
For Türkiye, this transition is both a matter of environmental importance and economic competitiveness in a global green transition, particularly in the EU, which accounts for nearly 50% of Turkish exports. Strategic alignment with the EU’s emphasis on sustainable practices can position Türkiye as a key player in this evolving green landscape, enabling greater economic growth alongside sustainability.
Key Findings
Stepped up efforts towards a circular economy align well with Türkiye’s own environmental and sustainability objectives, exemplified by its ambitious Zero Waste Initiative. The report finds that, on average, nearly one-fifth of Turkish firms have adopted waste minimization, recycling or waste management practices. Notably, firms in the garments and textiles sectors have been much more successful in introducing waste and recycling management than their counterparts in the fabricated metal products and machinery sectors. In terms of energy efficiency, nearly 35% of firms have taken steps to improve their energy efficiency, with such initiatives being more common in larger companies. Overall, Turkish industry has significant scope for improving its resource productivity and carbon footprint.
Accelerating circularity in Turkish industry relies on several key factors, including robust digital monitoring systems for traceability, efficient resource flow management, and waste reduction. A critical aspect is access to recycled materials, requiring either domestic recycling industry growth or securing foreign inputs. Technological advancements, such as resource-efficient machinery and workforce upskilling, are essential for minimizing material footprints and reducing adoption costs. Innovation plays a central role, necessitating rethinking business models, developing sustainable products, and leveraging R&D for competitive advantages. Financial support through diverse funding sources is crucial for enabling businesses to shift toward circular practices. Additionally, aligning consumer preferences and market demands with sustainability trends can accelerate CE adoption, reinforcing both national and global competitiveness in the evolving economic landscape.
Recommendations
A deliberate, strategic, and well-articulated approach toward transitioning Turkish firms to a circular economy is vital. Such an approach should blend immediate actionable steps with a forward-looking long-term strategy. The report details two scenarios for the circular economy transition, both attainable by Türkiye but differing in ambition level
The light transition aims at a more efficient use of materials and an increase in reuse and recycling through measures that are already in progress or can be implemented in the immediate future. This approach aligns closely with imminent EU regulations that prioritize traceability and the provision of detailed information on circularity and sustainability metrics, as well as minimum recycled content requirements. In the very short term, and with the ‘light’ approach in mind, three improvements are paramount:
- Advanced technology adoption: Prioritize the establishment of a robust recycling ecosystem
- and a reliable digital infrastructure for efficient resource use.
- Foundation for transition: Address challenges related to scale and investment, especially for
- smaller firms and lower-tier suppliers in global value chains (GVCs).
- Institutional governance: Enhance coordination within Türkiye and with the EU, balancing the need for dialogue and strategic timing of transitioning to EU standards.
The ambitious transition envisions enhanced environmental standards and a comprehensive redesign of products, business models, and financing. This scenario positions Turkish firms at the forefront of new and emerging industries, creating a fertile ground for sustained growth, innovation, and the advancement of the CE. The focus is on bolstering R&D activities, pioneering innovative business models and processes, and nurturing green skills:
- Skill investment: Developing skills related to the green economy and raising awareness about the circular economy across various stakeholders.
- Innovative ecosystem: Support research and development (R&D), innovative business models, and environmental sustainability through tailored finance, subsidies, and incentives.
- Private investment: Encourage significant private sector investment through clear government signaling of long-term commitment to the circular economy.