Turkish Emission Trading System

In 2024, Türkiye has been preparing to deploy carbon pricing instruments to help achieve its mitigation targets. These preparations include the publication of its “Long-Term Strategy” document (LTS 2053) during COP 29, which has explicit references to the Turkish Emission Trading System (TR ETS) expected to launch as pilot in 2026. 

Additionally, a World Bank funded project under the PMI program formally started in January 2024, and the first activities are expected in 2025. The project will assist Türkiye in assessing design options through modeling studies and support the development of legislative and regulatory frameworks for the TR ETS. It will also help the government analyze the broader economic impact of the TR ETS, establish a national carbon crediting mechanism, develop a strategy for engaging with the emerging Article 6 markets, and commission studies on a just transition strategy. These preparations are taking place in the context of Türkiye’s “Green Deal Action Plan”, which aims to align the country with the European Green Deal and taking into account the advisory decisions of the Climate Council, a multi-stakeholder consultation which took place in 2022.

The intention to develop the TR ETS has also been reflected in Türkiye’s annual “Medium-Term Programs” (MTPs) since 2022. The MTP covering 2025 to 2027 states that a carbon pricing mechanism “will be established to maintain competitiveness during the green transformation process, minimize the impacts of CBAM, and support the transition to a low-carbon economy.”* Moreover, the high-level planning outlined in the “12^th Development Plan (2024 to 2028)” takes the year 2053 as a long-term reference in the country’s green and digital transformation agenda and considers the TR ETS as an instrument of this transformation. 

In preparation for the launch of the ETS, the Directorate of Climate Change (DoCC) completed the technical analysis underpinning the draft climate law. The law is expected to be enacted in 2025 following parliamentary discussion early in the year. Sub-legislation (e.g., regulations, communiqués, etc.) enabling the development of the technical infrastructure (e.g., registry and transaction systems etc.) for the TR ETS is expected to be finalized in 2025 following the “Climate Law” enactment. The TR ETS will leverage data collected under Türkiye’s comprehensive mandatory monitoring, reporting and verification (MRV) system which has been in place since 2015. 

Türkiye is a candidate for EU accession and, as a part of this process, the country is planning to commence an Instrument for Pre-Accession Assistance (IPA III) project in 2025 for the transposition of the EU ETS legislation into domestic legislation which will define national ETS’ technical features.

* The most recent MTP covering 2025 to 2027 was approved by the President and published in the Official Gazette in September.