Pilot emissions trading system to be introduced this year

ISTANBUL

Türkiye is preparing to take a significant step in its green transformation journey with the introduction of a national Emissions Trading System (ETS).

Authorities plan to finalize the necessary regulations this year and initiate pilot applications, marking the beginning of a market-based mechanism to reduce greenhouse gas emissions. The ETS is being designed in line with the European Union’s system, ensuring compatibility with international carbon pricing frameworks. The initiative comes as the EU’s Carbon Border Adjustment Mechanism (CBAM) enters its implementation phase, accelerating Türkiye’s efforts to establish its own emissions market.

The system is expected to drive transformation across sectors with high greenhouse gas output, including cement, iron and steel, chemicals and aluminum production. By setting an upper limit on emissions and allowing permits to be traded within that cap, the ETS aims to incentivize cleaner technologies and reduce overall emissions. The Energy Markets Operation Company (EPİAŞ) is developing the ETS Market Management System Platform, which will be tested in a controlled environment this year. Security tests for the Transaction Recording System are also scheduled to be completed, while integration of monitoring, reporting and verification systems into EPİAŞ’s infrastructure will be advanced.

According to the Pre-Accession Economic Reform Program for 2026–2028, the pilot phase will continue through 2027. If successful, the first official implementation period of the ETS is planned for 2028. During this stage, the impact of the system on different sectors will be assessed, paving the way for a fully operational carbon market in Türkiye.