Introduction: In the wake of the COVID-19 pandemic, Turkey has implemented a series of impactful economic initiatives to combat the challenges posed by the global crisis. One such groundbreaking endeavor is the Economic Stability Shield Program, a comprehensive framework devised to bolster the nation's economy, stimulate growth, and promote innovation across various sectors. This initiative, spearheaded by President Erdogan, has not only provided financial stability but also paved the way for groundbreaking developments in areas such as renewable energy, clean mobility, and sustainable resource management.
Economic Stability Shield Program Unveiled: Under the visionary leadership of President Erdogan, Turkey introduced the Economic Stability Shield Program in response to the economic ramifications of the COVID-19 pandemic. This groundbreaking initiative was aimed at mitigating the adverse effects of the crisis, fostering economic stability, and promoting sustainable growth. One of the key measures implemented under this program was the significant reduction of Value-Added Tax (VAT) on domestic flights from 18% to a mere 1% for a period of three months. This strategic move not only bolstered the aviation sector but also facilitated affordable travel for citizens, thereby invigorating the tourism industry.
Expanding Horizons: Establishment of New Oil-Gas Companies: In a bid to enhance Turkey's energy independence and explore new avenues for oil and gas reserves, Turkish Petroleum Overseas Company Limited (TPOC), a subsidiary of major state-owned enterprises, established three new enterprises. These ventures, namely Turkish Petroleum International Corporation, BOTAŞ International Corporation, and Turkish Petroleum Off-Shore Technology Center Corporation, were instrumental in fortifying Turkey's position in the global energy landscape. The investments in these enterprises marked a significant leap towards achieving self-sufficiency in energy production and reducing dependency on external sources.
Driving Clean Mobility: Incentives for Electric Vehicles and Battery Production: Recognizing the importance of clean mobility solutions, Turkey implemented robust incentives to promote the production of electric vehicles (EVs) and battery components. These incentives encouraged the establishment of new EV and battery production facilities, with a focus on producing essential components such as DC-DC converters, charging units, energy management units, and HV starters. Additionally, renowned automobile manufacturer Ford Motor Company received incentives to expand its investment into commercial EV and battery systems. These strategic initiatives not only propelled Turkey into the forefront of the electric mobility sector but also contributed significantly to reducing carbon emissions and promoting environmental sustainability.
Fostering Renewable Energy: New Feed-in Tariff Rates and Solar Auctions: In its relentless pursuit of renewable energy solutions, Turkey introduced new feed-in tariff rates under the Renewable Energy Support Scheme (YEKDEM). These tariff rates provided a lucrative incentive for investors engaged in renewable energy projects, encouraging the development of solar, wind, biomass, and geothermal energy initiatives. Furthermore, the government conducted a landmark 1 GW solar auction, inviting investments in solar energy projects across various cities. This auction not only expanded Turkey's solar energy production capacity but also attracted significant foreign investments, establishing the nation as a prominent player in the global renewable energy market.
Conclusion: Turkey's Economic Stability Shield Program stands as a testament to the nation's resilience, innovation, and commitment to sustainable economic growth. By implementing strategic measures, such as VAT reductions, establishment of new energy enterprises, incentives for clean mobility, and fostering renewable energy initiatives, Turkey has positioned itself as a leader in the global energy landscape. These initiatives have not only bolstered the national economy but have also laid the foundation for a sustainable and prosperous future. As Turkey continues to embrace innovation and sustainability, it remains poised to achieve greater heights, driving economic progress and environmental conservation hand in hand.
