Turkey plans to implement its own Emissions Trading System (ETS) to maintain the competitiveness of its industry in the global market and reduce harmful emissions. According to official plans, the pilot phase will start as early as 2026-2027, with a full launch of the system expected in 2028.
This is reported by Finway
Main Stages of ETS Implementation in Turkey
The primary goal of implementing the ETS is to achieve carbon neutrality by 2053. The most significant changes will affect industries with high levels of greenhouse gas emissions, particularly the steel, chemical, and concrete sectors. Turkey’s economic reform program for 2026-2028 includes a phased implementation: initially, secondary legislation will be adopted, followed by the launch of the pilot phase, the establishment of a Market Management System, and finally, the transition to a full-fledged ETS. The system is being developed based on the European model of emissions trading.
Economic Impact and Expected Outcomes
The responsibility for creating and testing the ETS lies with the Energy Markets Operation Company (EPİAŞ). In addition to the technical infrastructure for reporting and monitoring, the development of training materials and online instructions for businesses is planned.
“The program justifies the economic feasibility of launching the ETS. As of January 1, 2026, the Carbon Border Adjustment Mechanism (CBAM) will come into effect in the EU, and the costs for Turkish industry regarding carbon could be substantial.”
A study conducted in collaboration with the European Bank for Reconstruction and Development analyzes two scenarios for emission costs: €75 and €150 per ton of CO2. With the lower rate, Turkish industry could pay €138 million for the CBAM in 2027, while at the higher rate, costs could reach up to €2.6 billion by 2032. The implementation of the ETS will significantly reduce these costs: to €56 million in 2027 and to €1.1 billion in 2032.
Overall, the launch of the national emissions trading system is expected to alleviate the financial burden on Turkish industry and enhance the country’s environmental standards.