Overview
The PMI is working with the Ministry of Environment, Urbanization and Climate Change in Türkiye to finalize the design of its national emissions trading system (ETS) and support the pilot launch. Since 2015, Türkiye has been operating a national Monitoring, Reporting and Verification system for energy and industrial sector installations. The country’s Medium-Term Programme (2023-2025) defines policies and measures on establishing an ETS under the green transformation topic and a national Climate change Law in line with a 2053 net zero target is being drafted. The Climate Council recommendations (June 2022) emphasize prioritizing ETS implementation, suggesting a pilot ETS in 2024, in compliance with the country’s updated ND Cand the EU Directive. More information on carbon pricing developments in Türkiye can be found on the Carbon Pricing Dashboard.
Country Market Based Approach
Carbon Tax
Assessing the implementation of a carbon tax in sectors not covered by the ETS is under consideration, including any legal and regulatory gaps to carbon tax implementation.
Emissions Trading
The PMI program focuses on finalizing the design of Türkiye’s national ETS (including final design choices, legal gaps, modeling impacts and registry development). Support for the first pilot phase of the national ETS is also included.
Domestic Crediting Mechanisms
Policy design recommendations, including registry and other data management tools, for a domestic crediting mechanism is under consideration. Additional work on the legal framework, methodologies and other guidance documents is also outlined.
International Carbon Markets
Limited work on international carbon markets, including strategies (potential roadmaps for Türkiye on Article 6 mechanisms) and capacity building work.
