Türkiye's Emissions Trading System (ETS) Pilot Phase Begins in 2026

Türkiye's national Emissions Trading System (ETS), established under Climate Law No. 7552 (published in the Official Gazette on July 9, 2025), has entered its pilot implementation phase covering 2026 and 2027. The pilot phase applies to facilities in the cement, iron and steel, aluminum, and fertilizer sectors with annual emissions capacity exceeding 50,000 tonnes of CO₂ equivalent.

During this period, covered installations will receive 100 percent free allowances allocated through a benchmarking methodology, with no financial obligations imposed. The primary objective of the pilot phase is to test the monitoring, reporting, and verification (MRV) infrastructure and to establish functioning market mechanisms. The pilot phase is scheduled to conclude on April 30, 2029, after which the first compliance period (2028–2035) will begin.

A key driver behind the establishment of the ETS is the EU's Carbon Border Adjustment Mechanism (CBAM), which entered its definitive phase with full financial obligations on January 1, 2026. By implementing its own carbon pricing mechanism, Türkiye aims to retain carbon costs paid by Turkish exporters within the domestic economy while generating financial resources for the green transition.

Source:

Climate Law No. 7552, Official Gazette of the Republic of Türkiye, Issue 32951, July 9, 2025.

Draft Türkiye ETS Regulation, Climate Change Presidency.

Link: https://iklim.gov.tr/turkiye-emisyon-ticaret-sistemi-yonetmeligi-taslagi-yayimlandi-haber-4519