Overview

Description

Türkiye has been preparing for the introduction of a national ETS to support its mitigation targets, with the legal framework taking shape in 2025. In July 2025, Türkiye enacted its first Climate Law, establishing the TR ETS and creating the institutional structure to administer it. The Carbon Market Board, chaired by the Minister of Environment, Urbanization and Climate Change, is responsible for approving national allocation plans, setting free allocation volumes, and determining offset credit limits. The Climate Law designates the Department of Climate Change as the competent authority for MRV, which has operated at installation level for energy and industry since 2015. Over 800 facilities are covered under the MRV regulation, encompassing combustion installations with rated thermal input of 20 MW or above. Collectively, these facilities account for around half of Turkey's aggregate GHG emissions. The ETS aligns with Türkiye's "2053 Long-Term Climate Strategy" and the "Medium-Term Program 2026 to 2028", both of which anticipate ETS implementation consistent with EU CBAM requirements. The Climate Law earmarks up to 10% of ETS revenues for just transition measures benefiting vulnerable groups and sectors.

Recent Developments

In July 2025, Climate Law entered into force, providing the statutory basis for the ETS and establishing the Carbon Market Board and related institutional arrangements. A draft ETS regulation was published in July 2025 for stakeholder consultation, addressing implementation topics including allocation, MRV, and registry operation. The pilot phase of the ETS is expected to start in 2026. In November 2025, Turkiye submitted its updated NDC (NDC 3.0), pledging to limit national emissions to 643 MtCO2e in 2035, a reduction of 466 MtCO2e compared to the business-as-usual scenario. Turkiye will host COP 31 in 2026.

Coverage

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Pricing and Allocation Approaches

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Compliance Approaches

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Relation to Other Compliance CPIs

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Covered Sectors

No eligible activities specified for this instrument.