Turkey has launched a national emissions trading system aimed at creating a domestic carbon market and retaining part of the carbon-related revenue that could otherwise be collected by the European Union (EU) from Turkish exporters, digital media platform EUAlive has reported.
The regulation setting up the Türkiye Emissions Trading System (TR ETS) was published in the Official Gazette last Thursday, creating a framework for monitoring, reporting and verifying greenhouse gas emissions and governing the domestic carbon market.
“On our path towards achieving our Green Transition target, we have established the legal framework for the Emissions Trading System and the carbon market,” Environment and Climate Change Minister Murat Kurum was quoted as saying.
Domestic Carbon Pricing Could Redirect Revenue
The move is closely tied to Turkey’s trade with the EU, its largest trading partner. The EU’s Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase in January, covering imports including steel, aluminum, cement, fertilizers, electricity and hydrogen. Where an eligible carbon price has already been paid in the country of production, that amount can be deducted from the importer’s CBAM liability.
For Turkish producers, that creates an incentive to pay a carbon price domestically rather than have the corresponding cost collected at the EU border. The system does not eliminate CBAM payments automatically, but could allow more of the carbon bill to be collected inside Turkey and used for decarbonization.
Relevant: Turkey Set To Launch Carbon Market Board, Emissions Trading System
The Turkish ETS is expected to run a pilot phase in 2026 and 2027, followed by its first implementation period from 2028 through 2035. Covered installations will require emissions permits valid for five years and will be divided into three categories according to annual emissions.
Revenue from emissions permits, primary market allowance sales, market stability operations, authorized international carbon credits and part of administrative fines will be recorded as special revenues and allocated to the Climate Change Directorate.
The system uses product-based benchmarks and emissions intensity rather than an absolute national emissions cap. Sectoral benchmarks are being developed for cement, fertilizers, iron and steel and power generation, with free allocations planned as part of the framework.
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