Turkey's Emissions Trading System and CBAM: The Future of Turkey’s Carbon Market

Carbon Forward Turkey 2025 event held in İzmir discussed critical topics shaping Turkey’s carbon market. Represented by Borga Köprülü from Goldstein Carbon, key subjects included Turkey’s Emissions Trading System (ETS), Voluntary Carbon Market (VCM), Carbon Border Adjustment Mechanism (CBAM), Turkey's Climate Law Proposal, and Carbon Dioxide Removal (CDR) projects.

What is Turkey’s Emissions Trading System (ETS)?

Turkey plans to launch an ETS pilot during 2026-2027 with 100% free initial allocations. Product-based MRV (Monitoring, Reporting, Verification) will start from 2026. ETS revenues will directly fund green transition projects. Companies should begin preparations immediately.

Legislation Ready, Awaiting Turkey’s Climate Law

Regulations for VCM and carbon markets are ready, awaiting approval of Turkey's Climate Law. Effective ETS requires clear offset mechanisms, price balance, and third-party participation.

Why is CBAM Important for Turkey?

EU’s CBAM, starting January 1, 2026, is strategically crucial for Turkey, helping manage domestic carbon costs, protecting exports, and fostering the national carbon market. CBAM implementation has no flexibility, making immediate compliance essential for Turkish exporters.

Turkey’s Potential with Carbon Dioxide Removal (CDR) Projects

CDR projects permanently remove CO₂ from the atmosphere. Turkey has significant potential (~100 million tons/year), offering lower-cost solutions compared to industrial transformations, supporting sustainable development and creating new business opportunities.

Innovation and Risk Management in Turkey’s Carbon Market

Clearer regulations and innovative approaches are expected in Turkey’s carbon market. Companies must monitor these developments, position strategically, seize opportunities, and proactively manage risks.

Summary of Turkey’s Carbon Market:

• ETS to incentivize emissions reduction.

• CBAM protects exports and supports local market development.

• CDR projects offer cost-effective climate action.

• Regulatory frameworks activated upon Climate Law approval.

  
  

Goldstein Carbon closely monitors market developments, providing sectoral and strategic solutions.

Questions about carbon markets or making your company carbon neutral? Contact us at carbon@goldstein.com.tr.