Industrialization is Turkey’s chosen instrument for economic development. The import-substitution development strategy followed up to 1980 was designed to make the country an independent producer of manufactured goods. One of the potential negative side of industrialization in Turkey would be significant increase in CO₂  emissions. This is indeed a major concern, especially given the recent focus in the region on energy-intensive industries and construction which are not particularly friendly environmentally. Carefully balanced industrial planning can allow  manufacturing and  increase without significantly contributing to accelerated growth in CO₂ emissions. The main objective of the paper is to investigate how to allocate industrial sources to effectively meet targets of environmental protection in the EU and its candidate member Turkey.