Emissions Trading System Important for Türkiye's Climate Targets

Implementing Türkiye's Emissions Trading System (ETS) is important for backing the country's climate targets with concrete mechanisms, as Türkiye prepares to host the UN Climate Change Conference COP31. According to information Anadolu Agency obtained from Energy Markets Operation Inc. (EPİAŞ), a regulation published on October 21 established the regulatory framework for the market operation of the Türkiye Emissions Trading System (TR ETS).

The 2026 and 2027 system years have been set as a pilot implementation period. In 2026, there is no general allowance surrender obligation, but reporting obligations must be met. In 2027, all allowances calculated by benchmark will be distributed free of charge, while the first allowance surrender obligation for emissions from that year must be met by the last business day of November 2028. From the 2028 system year, allowances are planned to be offered for sale through auctions in the primary market.

EPİAŞ will be responsible for registering market participants, operating the Transaction Registry System, allowance issuance, primary and secondary market transactions, and settlement, invoicing, collection, payment and redemption processes. The system is expected to support Türkiye's 2053 net zero emissions target and its commitments under the Nationally Determined Contribution.