What happened

Türkiye’s Climate Change Presidency has issued procedures for the pilot phase of the national emissions trading system, according to Yeşil Ekonomi. The pilot will run in 2026 and 2027.

It will apply to installations above the specified emissions threshold in electricity generation, cement, iron and steel, aluminium, and fertiliser. The report identifies the threshold as annual emissions above 50,000 tonnes of CO₂ equivalent.

Installations will have reporting duties only in 2026. Allowances will not have to be surrendered that year, aside from a voluntary supplementary allocation price mechanism. From 2027, operators must surrender allowances matching their verified emissions.

Why it matters

Covered operators need to establish the monitoring systems required to produce verified emissions data before allowance obligations start. They must prepare a Monitoring Methodology Plan by 27 October 2026. The deadline for all other businesses is 31 December 2027, although the Presidency may extend either deadline by up to six months.

The rules set the free-allocation rate at 100% for 2027, using a benchmark-based approach. Benchmarks will be published after verified reports have been submitted. For power generation, the Carbon Market Board will set benchmarks individually for each plant or installation.

Background

The first full implementation period will be split into 2028–2030 and 2031–2035. Benchmark calculations will use weighted average emissions intensities. For electricity generation, the calculation will draw on emissions-intensity data from 2023 to 2027 for each plant and, where applicable, its sub-installations.

What's next

Annual benchmarks for the 2028–2030 period will be announced in the National Allocation Plan after verified sub-installation reports are filed. Benchmarks for the entire 2031–2035 period are due by the final working day of November 2030.