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28 August 2026

The Regulation on the Türkiye Emissions Trading System (TR ETS), prepared by the Directorate of Climate Change, was published in the Official Gazette and entered into force.

Drafted by the Directorate of Climate Change, the framework sets out detailed rules for emission permits, monitoring, verification, and allowance allocations for heavy industrial emitters.

The Regulation on the Türkiye Emissions Trading System (TR ETS), entered into force today upon publication in Official Gazette issue No. 33353. Prepared by the Directorate of Climate Change under the Ministry of Environment, Urbanisation and Climate Change, TR ETS was promulgated under Climate Law No. 7552, which was passed by the Turkish Parliament on July 2, 2025.

The framework outlines the rules and operational guidelines for a national carbon market aimed at capping and reducing Türkiye’s greenhouse gas emissions through market-based mechanisms. Underlining the regulatory leap, Director of Climate Change Prof. Halil Hasar noted: “The TR ETS Regulation establishes the principles and procedures for monitoring, reporting, and verifying greenhouse gas emissions with unprecedented scope and granularity. This marks the dawn of a new carbon market architecture for governmental agencies and covered industries alike.”

Noting that the system will be rolled out gradually through a pilot phase, Director Hasar made the following remarks:

“The regulation foresees that implementation will begin with a pilot period, during which the principles and procedures will progressively take shape. In line with our statutory mandates under the Climate Law and the Regulation, the Directorate will issue these operational guidelines to ensure all stakeholders are provided with accurate and up-to-date information."

Under the regulation, the system covers Category B facilities with conservatively estimated annual greenhouse gas emissions exceeding 50,000 metric tons of CO2 equivalent based on installed capacity, as well as Category C facilities exceeding 500,000 metric tons. To maintain operations, covered installations will be required to obtain a greenhouse gas emission permit from the Directorate of Climate Change. The Climate Law provides an exemption for this permit requirement until July 9, 2028.  Facilities operated by schools, universities, hospitals, and defense industries remain exempt from the scope of the TR ETS, strictly limited to their primary operational activities."

Permitting Process

Covered operators will apply to the Directorate electronically with the information and documentation specified in Annex-3, with applications to be processed within a maximum of 60 days. Issued greenhouse gas emission permits will remain valid for five years. Operators will be required to submit renewal applications at least six months prior to expiration. Permits may be revoked in cases of deliberate false or misleading statements, cessation of operations, or failure to fulfill allowance surrender obligations.

Monitoring, Reporting, and Verification (MRV)

Under the new framework, covered operators must submit their monitoring plans for Directorate approval at least six months before the initial monitoring period begins—preserving continuity with the practices established under the now-repealed monitoring regulation. Annual emissions and activity data must be reported to the Directorate by April 30 each year. Before submission, these reports will undergo mandatory third-party verification by independent bodies assigned through the Central Electronic Verifier Assignment System (MEDAS) and accredited by the Turkish Accreditation Agency (TÜRKAK) under ISO/IEC 17029 standards.

Allocations and Market Architecture

The allowance allocation framework serves as the system's economic engine. Free allowances will be determined at the sub-installation level, calculated by multiplying baseline benchmarks, activity levels, sector-specific activity coefficients, and free allocation ratios set by the Carbon Market Board. Allowances beyond the free quota will be auctioned on the primary market, operated by Energy Exchange Istanbul (EPİAŞ) in its role as Market Operator. Market participants can also trade freely on a continuous secondary market. To hedge against price volatility, regulators may deploy a market stability reserve, while operators can access a limited “supplementary reserve” to meet surrender obligations under specific conditions.

Institutional Framework

System governance relies on a multi-agency structure. The Carbon Market Board, chaired by the Minister, holds sole authority to approve the National Allocation Plan and decide free allowance distribution. The Directorate will oversee administrative and technical execution, while EPİAŞ manages market operations and the registry system. Meanwhile, an Advisory Board led by the Union of Chambers and Commodity Exchanges of Türkiye (TOBB) will channel private-sector insights into the process. Regulatory guidelines governing market conduct will be established by the Energy Market Regulatory Authority (EPDK).

Implementation Timeline

The carbon market will launch through a phased pilot phase, with the Carbon Market Board setting its duration and scope after consulting public bodies, industry leaders, and civil society groups. To ensure a smooth transition, covered installations will automatically hold valid operational status for three years under Law No. 7552. The Directorate retains the authority to extend this grace period by up to two additional years if required.

The complete text of the regulation and its technical annexes are available on the Official Gazette platform and the Directorate of Climate Change website.