In response to complaints from stakeholders in the energy and mining sectors about lengthy licensing procedures, the Turkish government has introduced several amendments to the applicable legislation aimed at streamlining the project development process.

Under the new amendments, project developers may now apply for licences without first obtaining a positive Environmental Impact Assessment (“EIA”) decision. Before the amendments, many projects were awaiting the lengthy EIA procedure to conclude before applying for other licences (e.g. zoning licence). This change allows project developers to initiate licensing procedures in parallel with the EIA process.

It is important to note that for projects required to obtain a positive EIA decision, licences will still not be granted until the EIA process is completed.

Key amendments intended to shorten the licence procedures for energy projects include the following:

• Forestry licence for the development of solar energy power plants (the “SPP(s)”) and wind energy power plants (the “WPP(s)”) will be granted throughout the pre-licence period and will automatically cover the generation licence period once the generation licence is granted;

• The completion of the forestry licence process is limited to sixty days from the date of the application;

• The Ministry of Energy and Natural Resources (the “Ministry”) is now authorised to issue construction-related licences for SPPs and WPPs; and

• The time-consuming ornithological monitoring required during the EIA process for WPPs will now be limited to WPPs located on main bird migration routes.

Also, several amendments to the Mining Law has reshaped the licence procedure for mining activities. The key amendments are summarised as follows:

• The General Directorate of Mining Affairs (the “General Directorate”) is now responsible for coordinating with relevant state authorities for licences within protected areas (e.g., archaeological sites, national parks, and tourism areas), excluding forest areas;

• The General Directorate is assigned to step-in for the issuance of licences for mining activities within the state forests;

• A three-month time limit has been introduced for state institutions to provide opinions during the EIA process for mining projects. If the institutions fail to respond within this timeframe, their opinions will be deemed positive; and

• The Ministry is authorised to determine strategic and critical minerals and the expropriation of the sites containing such minerals are subjected to a straightforward expropriation procedure.

The amendments also permit the use of pastureland for energy investments and olive groves for mining projects, provided such use serves the needs of electricity generation facilities.

Overall, these legislative changes are expected to accelerate the development of energy and mining projects, enabling more projects to reach commercial operation at an earlier stage. Furthermore, by streamlining licence procedures and reducing the risk of project failure due to licence-related obstacles, these changes are anticipated to enhance the bankability and overall feasibility of energy and mining investments.