Program Overview
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In July 2025, Türkiye adopted its Climate Law, which establishes the legal basis for a national Emissions Trading System (ETS) to support Türkiye in achieving its net zero target. The new Climate Law also establishes the governance and institutional arrangements, including the formation of a Carbon Market Board. The new Board will approve national allocation plans, determine the distribution of free allowances, and establish limits on the use of carbon credits to offset liabilities under the ETS. The details of the ETS will be outlined in regulations, with the initial pilot phase of the ETS expected to commence in 2026.
Objectives & Activities
The Partnership for Market Implementation (PMI) is supporting the Government of Türkiye in implementing its national ETS through targeted technical assistance and institutional support. This includes:
- Supporting the design and regulatory framework for the national ETS
- Delivering economic and policy analysis and assessments
- Developing a domestic crediting system that could supply offsets to the ETS
- Implementing an Article 6 strategy to enable participation in international carbon markets under the Paris Agreement
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.
