What happened
Türkiye’s regulation for its emissions trading system entered into force on 27 August 2026. The 42-article regulation, which also contains six provisional articles and seven annexes, creates the legal basis for the country’s national carbon market.
It sets rules for the system’s coverage, aggregate emissions limit, greenhouse-gas permits, allocation and surrender of allowances, market flexibility arrangements, a market stability reserve, compliance, and monitoring, reporting and verification.
Category B and C facilities with annual emissions above 50,000 tonnes of carbon dioxide equivalent will fall within the system. Schools, universities, hospitals and defence-industry facilities are excluded from ETS coverage, but must still monitor, report and verify their emissions.
Covered operators must obtain a greenhouse-gas emissions permit from the Climate Change Presidency to continue operating. Permits will last five years, and renewal applications must be made at least six months before expiry. Companies entering the system will have a three-year transition period to secure a permit; the Carbon Market Board may extend this by up to two years.
Why it matters
The regulation gives businesses operating covered facilities in Türkiye a defined compliance framework for carbon emissions. It introduces an emissions cap and allowance system: some allowances will be allocated without charge using production levels and emissions intensity, while the remainder will be sold through auctions in the primary market.
EPİAŞ will run the market, with secondary-market trading available through continuous trading. A market stability reserve is intended to address sharp price movements, and the Carbon Market Board can set minimum and maximum price bands when needed.
Operators will need to surrender allowances equal to their verified emissions by the final working day of November in the following year. Failure to submit a verified emissions report on time carries fines of TL627,450 to TL6,274,500, with the amount doubled for ETS facilities. Operating without a valid permit, or under an expired or cancelled permit, can result in fines of TL1,254,900 to TL12,549,000.
Background
Türkiye’s Climate Law had identified the emissions trading system as a planning and implementation tool for cutting greenhouse-gas emissions in support of the country’s 2053 net-zero target. The Climate Change Presidency prepared the regulation.
What's next
The system will begin with a pilot phase, with its scope and duration to be determined by the Carbon Market Board. Businesses included in that pilot must submit their first Monitoring Methodology Plans within two months.
