Identifier
Created
Classification
Origin
09ANKARA493
2009-03-31 07:59:00
UNCLASSIFIED
Embassy Ankara
Cable title:
TURKEY: NO GREEN ENERGY INVESTMENTS IN STIMULUS
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UNCLAS ANKARA 000493
SIPDIS
DEPT FOR OES/EGC BARBARA DEROSA-JOYNT AND ED FENDLEY
E.O. 12958: N/A
TAGS: EFIN ENRG SENV KGHG TU
SUBJECT: TURKEY: NO GREEN ENERGY INVESTMENTS IN STIMULUS
PACKAGE
REF: A. STATE 26022
B. ANKARA 118
C. ANKARA 297
D. ANKARA 313
UNCLAS ANKARA 000493
SIPDIS
DEPT FOR OES/EGC BARBARA DEROSA-JOYNT AND ED FENDLEY
E.O. 12958: N/A
TAGS: EFIN ENRG SENV KGHG TU
SUBJECT: TURKEY: NO GREEN ENERGY INVESTMENTS IN STIMULUS
PACKAGE
REF: A. STATE 26022
B. ANKARA 118
C. ANKARA 297
D. ANKARA 313
1. Although Turkey has now passed two major stimulus
packages (see reftels),neither set of legislation
contained any major initiatives on green investment. The
upcoming third package is expected to focus on credit
guarantees, and there has not yet been any discussion of a
fourth package.
2. The GOT did grant an amnesty on taxes and fines for
people who trade-in vehicles older than 30 years for a new
car, partially with the intent of removing high-emission
vehicles from the road, but more as a means to spur new car
purchases. The success of this plan has been limited, for
reasons outlined in Ref C. More successful has been the
temporary removal of the special consumption tax on new
vehicles (Ref D),which has sparked a sharp uptick in new
vehicle sales and will tangentially help replace older
vehicles with newer, low-emission models. Again, the goal
was less to help the environment than to spur the
automotive industry, and if there is a net gain in overall
cars on the road the emissions picture may actually worsen.
3. Prior to the passage of the stimulus package, there had
been some expectation that there would be tax incentives
for automotive firms researching clean technologies and
retail tax incentives for consumers purchasing green
vehicles, but neither proposal was included in the final
plan.
Visit Ankara's Classified Web Site at
http://www.intelink.sgov.gov/wiki/Portal:Turk ey
Jeffrey
SIPDIS
DEPT FOR OES/EGC BARBARA DEROSA-JOYNT AND ED FENDLEY
E.O. 12958: N/A
TAGS: EFIN ENRG SENV KGHG TU
SUBJECT: TURKEY: NO GREEN ENERGY INVESTMENTS IN STIMULUS
PACKAGE
REF: A. STATE 26022
B. ANKARA 118
C. ANKARA 297
D. ANKARA 313
1. Although Turkey has now passed two major stimulus
packages (see reftels),neither set of legislation
contained any major initiatives on green investment. The
upcoming third package is expected to focus on credit
guarantees, and there has not yet been any discussion of a
fourth package.
2. The GOT did grant an amnesty on taxes and fines for
people who trade-in vehicles older than 30 years for a new
car, partially with the intent of removing high-emission
vehicles from the road, but more as a means to spur new car
purchases. The success of this plan has been limited, for
reasons outlined in Ref C. More successful has been the
temporary removal of the special consumption tax on new
vehicles (Ref D),which has sparked a sharp uptick in new
vehicle sales and will tangentially help replace older
vehicles with newer, low-emission models. Again, the goal
was less to help the environment than to spur the
automotive industry, and if there is a net gain in overall
cars on the road the emissions picture may actually worsen.
3. Prior to the passage of the stimulus package, there had
been some expectation that there would be tax incentives
for automotive firms researching clean technologies and
retail tax incentives for consumers purchasing green
vehicles, but neither proposal was included in the final
plan.
Visit Ankara's Classified Web Site at
http://www.intelink.sgov.gov/wiki/Portal:Turk ey
Jeffrey