Türkiye’s upcoming Emissions Trading System (ETS) will force a major transformation across core heavy industries, driving decarbonization in energy, metals, cement, chemicals, glass and ceramics.
The ETS regulation, prepared by the Climate Change Directorate under the Environment, Urbanization and Climate Change Ministry, was published in the Official Gazette last week.
The regulation establishes the rules governing the implementation of Türkiye’s ETS and provides the legal framework for the national carbon market.
Through the ETS, the government aims to encourage reductions in greenhouse gas emissions, accelerate the transition to low-carbon production technologies and support the country’s green transformation process.
The ETS also introduces significant obligations for industrial enterprises. Facilities covered by the regulation will be required to monitor, report and verify their emissions and surrender the necessary emission allowances corresponding to their verified emissions.
Seyit Ardıç, chairman of the Ankara Chamber of Industry (ASO), told state-run Anadolu Agency that the regulation marks an important stage in the green transformation of industry.
“With the new system, carbon is becoming more than an environmental indicator that is monitored and reported. It is turning into an economic parameter that directly affects production costs, investment decisions and competitiveness,” he said.
“The system will directly affect energy, iron and steel, aluminum, cement and lime, glass and ceramics, paper and pulp, as well as certain chemical and hydrogen production activities,” he added.
“The cost impacts of the system could also be felt in sectors such as machinery, automotive and electrical-electronics through supply chains. We must turn this process into a transformation opportunity that strengthens the competitiveness of our industry,” Ardıç said.
“For the transformation to succeed, a predictable implementation timetable, strong financing opportunities and effective incentive and grant mechanisms will be of great importance. In particular, our SMEs need to be supported effectively to help cover the costs of this transition,” he added.
In a report, global energy think-tank Ember said that the introduction of Türkiye’s EST marks a new chapter in the country’s climate policy.
By reducing industrial emission intensity through product-based benchmarks, the system supports the green transition and helps exporters remain competitive under the EU’s Carbon Border Adjustment Mechanism (CBAM), it said.
Under the Turkish ETS, facilities with annual emissions of more than 50,000 tons of CO2 will be required to monitor and report their emissions and surrender certificates equivalent to their annual emissions, it noted.
Türkiye’s decision to launch the ETS is significantly influenced by its trade relations with the European Union, according to the report.
According to CBAM rules, if a carbon price has already been paid in the exporting country, that amount can be deducted from the CBAM costs payable to the EU.
“Therefore, implementing an effective ETS in Türkiye helps keep these carbon costs within Türkiye’s borders and channel them towards the green transition of domestic industry. This also helps Türkiye’s export sectors remain competitive in international markets,” it said.
