Türkiye Steps into the Carbon Market: National ETS Launching in 2026

Türkiye is making a major move toward net-zero emissions by 2053 with the launch of its national Emissions Trading System (ETS). Enacted in 2025, the Climate Law officially sets the stage for a carbon market aligned with the European Green Deal, aiming to reduce greenhouse gas emissions and accelerate the green transition.

Legal Framework and Institutions Driving Türkiye’s Carbon Market

The Climate Law, Türkiye’s first comprehensive climate legislation, provides the legal foundation for the ETS. The Climate Change Department under the Ministry of Environment, Urbanization, and Climate Change will manage the system, while the Carbon Market Board sets rules for emission allowance allocation and pricing.

Pilot Phase Begins in 2026

Türkiye’s ETS will launch a pilot implementation from 2026 to 2027. During this period, the system will be tested and sectors’ compliance processes monitored. Full implementation will begin in 2028, when carbon allowance trading and pricing mechanisms are fully operational.

Covered Sectors and Eligibility

The ETS will include energy and industrial facilities emitting more than 50,000 tons of CO₂-equivalent per year. These facilities must obtain emission allowances, complete annual reporting, and hold a valid five-year emission allowance certificate.

Turquoise Credits for Compliance Flexibility

Turquoise Credits, generated from domestic greenhouse gas reduction projects, can cover up to 10% of annual emission obligations. These credits are valid only within Türkiye; international carbon credits are not accepted.

Alignment with European Carbon Standards

Türkiye’s ETS is designed to align with the EU’s Carbon Border Adjustment Mechanism (CBAM). This ensures Turkish exporters can cover carbon costs for goods sent to the EU domestically, maintaining global competitiveness.

Monitoring, Reporting, and Verification (MRV)

Facilities under the ETS must monitor, report, and verify emissions through independent third parties. This MRV process ensures system transparency and effectiveness.

Ensuring Market Stability

To prevent price volatility, a Market Stability Reserve will be established, balancing the supply and demand of emission allowances.

Impact on Türkiye’s Economy and Environment

The national ETS is expected to promote carbon pricing, provide a competitive edge in international trade, and influence Türkiye’s energy, industrial, and environmental policies. The 2026 pilot phase marks the first tangible step toward a sustainable and low-carbon economy.