Turkey is preparing to implement its own emissions trading system (ETS), which is set to be fully operational by 2028. Before that, the country plans to conduct a pilot testing phase for the new tool, starting in 2026–2027.
This is reported by Finway
Goals of Launching the ETS and Covered Sectors
The primary reason for deploying the national ETS is Turkey’s desire to maintain competitiveness in global markets while also reducing greenhouse gas emissions. The state strategy aims to achieve net-zero emissions by 2053. Initial changes will focus on sectors with the highest emissions, including the steel, chemical, and concrete industries. Authorities hope that the new mechanism will enhance production efficiency and be economically beneficial for businesses.
Implementation Steps and Economic Impact
It is known that the launch of the pilot phase of the ETS is included in Turkey’s Economic Reform Program for 2026–2028. The regulatory framework has already been developed, and the implementation of the system will occur in stages: initially, secondary legislation will be published, followed by the launch of the pilot phase, the establishment of a Market Management System, and a gradual transition to a full-fledged emissions trading system.
The Turkish ETS is based on the principles of the European emissions trading system. The Operational Company for Energy Markets (EPİAŞ) will be responsible for its development and testing. There are plans to create modern infrastructure for reporting and monitoring, as well as to prepare training materials and online instructions for businesses.
“A study conducted in collaboration with the EBRD models two scenarios – with a price of €75 and €150 per ton of CO2. In the case of applying the first rate, in 2027, Turkish industry will pay €138 million under the CBAM mechanism; in the second scenario, it will amount to €2.6 billion by 2032. The implementation of the ETS will significantly reduce these ‘carbon’ costs. It is estimated that payments under the CBAM will decrease to €56 million by 2027 and to €1.1 billion by 2032.”
The program emphasizes the economic feasibility of implementing the ETS. From January 1, 2026, the EU will implement the Carbon Border Adjustment Mechanism (CBAM), through which Turkish producers may face multi-million euro costs for carbon quotas. The conducted study with the EBRD demonstrates that even with high CO2 emission prices, the launch of the ETS will allow for a significant reduction in costs for Turkish industry, preserving its competitive position in the European market.