Draft Regulation on the Emissions Trading System of Türkiye Released

The first draft regulation has been released following the entry into force of Türkiye’s first Climate Law. The first draft regulation has been released following the entry into force of Türkiye’s first Climate Law. Draft Regulation on the Emissions Trading System of Türkiye has been released. The first draft regulation has been released following the entry into force of Türkiye’s first Climate Law. Prepared by the Directorate of Climate Change, the draft also begins to set out a clear implementation roadmap.

Under the draft:

The green development drive will be further strengthened. Low-emission production will be promoted in line with Türkiye’s Nationally Determined Contribution targets. Companies that invest in the green transition are expected to benefit on a sustained basis. An emissions-intensity-based cap will allow overall production to grow while reducing product-level emissions intensity.

The monitoring, reporting, and verification framework for greenhouse gas emissions that has been in place in Türkiye for the past decade has now been consolidated into a single structure together with the carbon pricing mechanism under the Türkiye Emissions Trading Regulation.

Key elements of the Regulation include the following:

An emissions-intensity-based cap mechanism. Free allocation of allowances based on benchmarking.

Pilot phase:

2026–2027 with 100 percent free allocation under the benchmarking approach.

Implementation Period 1:

2028–2035 (a first sub-period for 2028–2030 and a second sub-period for 2031–2035) 

Coverage:

facilities with a greenhouse gas emission capacity exceeding 50,000 tons of CO², (Pilot phase: CBAM sectors, Implementation Period 1: facilities carrying out activities listed in Annex-1)

An emissions coverage rate of 41 percent in the pilot phase and 47 percent in the Implementation Period 1. The preparation and submission of monitoring plans, monitoring methodology plans, annual greenhouse gas emission reports, and annual activity-level reports. Post-pilot offsetting options. Flexibility mechanisms, including banking and borrowing. Greenhouse gas emission permitting procedures aligned with European Union practice. An additional reserve mechanism to support allowance surrender.

A complementary carbon pricing mechanism for those wishing to pay a supplemental carbon price on top of the allowance price. The establishment of an allowance price corridor. The establishment of an allowance price corridor.

Stakeholders may submit comments on the Draft Regulation by August 4, 2025 to karbonfiyatlandirma@iklim.gov.tr in accordance with the Regulation on the Procedures and Principles for the Preparation of Legislation.

karbonfiyatlandirma@iklim.gov.tr

The Draft Regulation is available at:

https://iklim.gov.tr/taslaklar-i-2124