Turkiye to launch carbon market in 2027 under new emissions trading system

• 10% of ETS revenues will be channelled for just transition
• Turkish businesses preparing in earnest for COP31 in November

SteelOrbis: The Turkish deputy minister of environment, urbanization and climate change, has announced that Turkiye will launch its carbon market in 2027 following the establishment of the Emissions Trading System (ETS) under the recently enacted Climate Law, according to media reports.

Speaking before the Turkish Parliament’s Environment Commission during a briefing on preparations for the United Nations Climate Change Conference (COP31), the minister said the ETS will become a key instrument in Turkiye’s emissions reduction strategy.

ETS revenues to support just transition

According to the government, 10% of revenues generated through the ETS will be allocated to support a just transition. Turkiye is among the limited number of countries that have formally designated a portion of carbon market revenues for this purpose and the government will seek broader international recognition of just transition issues during COP31. The minister noted that progress on the subject had already been made during recent climate negotiations held in Bonn.

Private sector expected to play key role

The deputy minister emphasized that the ETS is designed to directly support emissions reduction efforts while maintaining strong private sector involvement. Turkish businesses have been among the strongest supporters of preparations for COP31, reflecting growing awareness of sustainability requirements and ongoing corporate efforts related to climate transition and environmental performance.

Electrification and grid investment

The minister also underlined the importance of electrification in reducing emissions. She stated that achieving a global electrification rate of 35% would make a significant contribution to emissions reduction efforts. While renewable energy technologies have become more affordable, insufficient grid infrastructure is the main obstacle to accelerating the energy transition.

COP31 will take place in Antalya from 9-20 November, with Turkiye expecting approximately 100,000 participants.

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