Pilot Period Framework for Turkey's Emissions Trading System Clarified
The Carbon Market Board has determined the procedures and principles regarding the pilot implementation period of Turkey's Emissions Trading System for the years 2026-2027.
The scope, duration, and general principles of the pilot implementation period of Turkey's Emissions Trading System, covering the years 2026 and 2027, have been decided by the Carbon Market Board.
Scope and Sectors of the Pilot Period
According to the statement made by the Presidency of Climate Change, the Carbon Market Board held its first meeting and clarified the general implementation principles of the pilot period.
Accordingly, facilities operating in the electricity generation, cement, iron-steel, aluminum, and fertilizer sectors will be included in the scope of the system.
Facility Criteria and Annual Emissions
Facilities to be included in the system are required to be classified as Category B and C in the regulation.
Additionally, the annual emissions of these facilities must be above 50 thousand tons of CO2 equivalent.
Reporting and Pricing Mechanism Schedule
According to the implementation schedule, the system will start operating in 2026 solely with the reporting obligation of the companies within the scope.
In the following year, 2027, the carbon pricing mechanism will be officially put into effect.
Free Allocation and Benchmark Method
It was decided that the free allocation rate for each sector will be applied as 100 percent based on the benchmark method during the pilot period.
For the electricity sector, the benchmark value will be calculated on a plant-by-plant basis, taking into account the weighted average emission intensities of the power plants for the past five years.
Facilities Kept Outside the Scope
Facilities whose main activity is not among the specified five sectors but which generate electricity for self-consumption will be kept out of the scope during the pilot period.
Additionally, compressor and pressure balancing units belonging to natural gas and crude oil pipeline operating organizations will also be excluded from the system.
Publication of Procedures and Principles
All these procedures and principles determined for the pilot implementation period will be prepared by the Presidency of Climate Change and announced to the public.