Türkiye Publishes Emissions Trading System Regulation

Türkiye’s Emissions Trading System Regulation was published in today’s issue of the Official Gazette, bringing into force a framework that had been circulated for public comment in draft form in July last year.

The regulation establishes the framework for Türkiye’s carbon market, setting out procedures and principles for monitoring, reporting and verifying greenhouse gas emissions, as well as for implementing the Türkiye Emissions Trading System, or ETS.
Rules for the pilot phase to be issued separately

The final regulation makes significant changes to the draft, most notably revising the provisional Article 1, which sets out the framework for the pilot phase and the first implementation period. Provisions governing how the system would operate during these periods were substantially removed.

Under the revised regulation, the pilot phase will begin once the Carbon Market Board publishes the procedures and principles governing its implementation.

Businesses covered by the pilot phase will be required to submit their first Monitoring Methodology Plans to the Climate Change Directorate within two months of the regulation’s publication.

The first implementation period will be divided into two subperiods. For the first subperiod, annual benchmarks will be announced through the National Allocation Plan after verification reports for individual installations have been submitted.

Fines of up to 12.5 million liras

Under the regulation, installations covered by the system will be classified into three categories — A, B and C — according to their annual emissions.

Installations emitting 50,000 tonnes of CO₂ equivalent (CO₂e) or less per year will be classified as Category A. Those emitting more than 50,000 tonnes but no more than 500,000 tonnes of CO₂e will fall into Category B, while installations emitting more than 500,000 tonnes of CO₂e annually will be classified as Category C.
Installations that fail to meet their obligations under the regulation will face administrative fines ranging from 627,450 Turkish liras to 6.27 million liras.

Businesses covered by the system that operate without obtaining a greenhouse gas emissions permit, or that continue operating after their permit has expired or been revoked, will face fines ranging from 1.25 million liras to 12.55 million liras.

Experience requirements eased for businesses and consultancies

Another change from the draft concerns the staffing requirements for businesses and consulting firms carrying out greenhouse gas monitoring and reporting.

For Category B installations, the requirement for at least one staff member with a minimum of two years’ experience was reduced to one year.

For Category C installations, the requirement to employ at least two staff members with a minimum of three years’ experience was reduced to two staff members with at least two years’ experience.

Revenues to go into the general budget

Another significant change concerns how revenues generated through the ETS will be accounted for.

The draft stipulated that payments including application fees, supplementary allocation prices and 50 percent of the revenues earned by the market operator would be recorded in a special revenue account. Under the regulation as published, however, these revenues will instead be recorded in the general government budget.