Turkey's Emission Trading System Regulation Enters into Force
The Emission Trading System, which enables the monitoring and trading of carbon emissions, has been implemented after being published in the Official Gazette.
Prepared by the Ministry of Environment, Urbanization and Climate Change, the Regulation on Turkey's Emission Trading System has entered into force upon publication in the Official Gazette. With this regulation, a new market has been established in the country where carbon emissions will be monitored and allowances can be bought and sold.
Scope and Exemptions of the System
The Emission Trading System will initially cover Category B and Category C facilities with annual greenhouse gas emissions of over 50 thousand tons. Facilities with annual emissions between 50 thousand and 500 thousand tons will be evaluated as Category B, and facilities producing emissions of over 500 thousand tons will be evaluated as Category C.
Facilities of schools, universities, hospitals, and defense industry organizations will be excluded from the scope of the ETS. However, these facilities will continue to have the obligation to monitor and report their emissions. Activities involving the transmission and storage of natural gas and crude oil will also remain outside the system until the end of the first implementation period.
Allowances and Carbon Cost
An allowance corresponds to the right to emit one ton of carbon dioxide equivalent in greenhouse gases. The annual emissions of enterprises will be measured, reported, and verified by independent organizations.
At the end of the year, the enterprise will surrender allowances equal to its verified emissions. If its available allowance amount is insufficient, it will purchase the difference from the market.
The amount of free allowances to be given to enterprises will be calculated based on criteria such as sector, production level, and emission intensity. An enterprise that emits more carbon than the allowance it received during production will be obliged to purchase the difference.
Market Operations and the Role of EPİAŞ
An ETS market will be established so that allowances can be bought and sold. Initial sales will take place in the primary market, after which enterprises will be able to buy and sell allowances among themselves in the secondary market.
Energy Markets Operating Corporation (EPİAŞ) will take part in the operation of the market. The issuance, transfer, and surrender of allowances in an electronic environment will be carried out through the Transaction Registry System to be established.
Permit and Reporting Processes
Enterprises within the scope of ETS will be required to obtain a greenhouse gas emission permit in order to continue their activities. The permit will be valid for five years.
Enterprises will also report the previous year's emissions by April 30 of each year. If deemed necessary by the Ministry, this period can be extended by up to one month. The reports must be checked by independent and accredited verifier organizations.
Sanctions and Pilot Application
Serious sanctions await enterprises that fail to fulfill the obligations of the system. For certain Category C facilities that fail to submit their verified greenhouse gas emission report on time, the penalty may reach up to 6 million 274 thousand 500 liras.
For high-emission facilities operating without a greenhouse gas emission permit, or with an expired or canceled permit, the penalty can reach up to 12 million 549 thousand liras.
Turkey's ETS will begin with a pilot application in the first stage. The scope, duration, and implementation principles of the pilot period will be determined by the Carbon Market Board.