Framework Set for TR ETS Pilot Period

The scope and duration of the pilot implementation period of Türkiye’s Emissions Trading System (TR ETS) have been established.
According to a statement by the Presidency for Climate Change, the Carbon Market Board set the general implementation rules for the period covering 2026 and 2027 at its first meeting.

Under the board’s decision, the system will cover facilities operating in five sectors — power generation, cement, iron and steel, aluminum, and fertilizer — that are classified as Category B or C under the regulation and have annual emissions exceeding 50,000 metric tons of CO2 equivalent.

The system will begin in 2026 with reporting obligations for companies covered by the system. A pricing mechanism will be introduced in 2027.

During the pilot period, the free allocation rate for each sector will be set at 100 percent based on the applicable benchmark.

For the power sector, the benchmark used for free allocations will be calculated at the plant level, based on the weighted average emissions intensity of each power plant over the previous five years. For all other sectors, the benchmark will be based on the weighted overall average across all facilities.

Facilities whose primary activity does not fall within the five main sectors but that generate electricity from fossil fuels, biomass or waste for self-consumption will also be excluded from the TR ETS during this period. This applies to electricity-generation activities under Prodcom code 35.11.10.30.00.

Similarly, pressure-regulating and balancing facilities, compressor units and stations operated by entities that own and operate natural gas and crude oil pipelines will be excluded from the TR ETS during this period.

The procedures and principles established for the pilot implementation period will be prepared and published by the Presidency for Climate Change.