The Turkish government is preparing to launch its own emissions trading system (ETS) in 2028. Before the official launch, the new tool will be tested in a pilot phase, which will begin as early as 2026-2027.
According to SteelOrbis, the reasons for rolling out a national ETS for Turkey are to maintain competitiveness in the international market and reduce emissions. The country aims to achieve zero emissions by 2053.
The acceleration of decarbonization will primarily affect sectors with high greenhouse gas emissions. In particular, this refers to the steel, chemical, and concrete industries.
The country expects the new mechanism to be sufficiently effective and cost-effective.
Implementation procedure
The launch of the ETS pilot phase was announced in Turkey's Economic Reform Program for 2026-2028. The regulatory framework has already been developed, and implementation will take place in stages. This involves the publication of secondary legislation, the launch of the pilot phase, the development of a market management system, and the transition to a full-fledged ETS.
The Turkish ETS is based on the principles of the European emissions trading system. The Energy Markets Operating Company (EPİAŞ) will be responsible for its creation and testing. In addition to developing reporting and monitoring infrastructure, training recommendations and online instructions for businesses are also planned.
ETS as a way to reduce CBAM costs
The program justifies the economic feasibility of launching a carbon border adjustment mechanism (CBAM). On January 1, 2026, the Carbon Border Adjustment Mechanism (CBAM) came into force in the EU, and the costs of carbon for Turkish industry could be enormous.
A study conducted in collaboration with the EBRD models two scenarios – with a price of €75 and €150 per ton of CO2. If the first rate is applied, Turkish industry will pay €138 million under the CBAM in 2027, and in the second scenario – €2.6 billion by 2032.
The introduction of the ETS will significantly reduce these "carbon" costs. Approximately, payments under the CBAM will decrease to €56 million in 2027 and to €1.1 billion in 2032.
As previously reported by EcoPolitic, in just the first week of CBAM implementation in Europe, nearly 1.7 million tonnes of imports with a carbon footprint were declared. Of the total volume, 98% was ferrous metallurgy products.
