Climate Law No. 7552 and the Turkish emissions trading system (ETS), 2025
Türkiye’s first climate law, adopted by the Grand National Assembly on 2 July 2025 (242 votes to 141) and in force since its publication on 9 July 2025, sets the legal framework for fighting climate change « in line with the green growth vision and the net-zero emission target » (2053). Its main instrument is a national emissions trading system (ETS) run by the Climate Change Presidency: since the ETS regulation of 27 August 2026, a pilot phase covers 2026 and 2027 emissions of large installations in electricity generation, cement, iron and steel, aluminium and fertilisers, with 100% free allocation.
Key points
GHG emissions
580MtCO2e
2024
Votes in favour of the Climate Law
242
2 July 2025, final vote · Observed
Grand National Assembly of Türkiye, record of proceedings[4]
141 votes against; 383 votes cast.
Free allocation rate during the ETS pilot phase
100%
2026-2027 emissions, every pilot sector · Announced
Decision of the Carbon Market Board (KPK/2026/1), benchmark method[7]
- Status: In force since July 9, 2025. Resmî Gazete No. 32951; under its article 19 the law enters into force on the date of publication. The ETS starts with a pilot phase before full application.[1]
- Next milestone: 2027, First system year with a price mechanism and an allowance surrender obligation
At a glance
Reference text
İklim Kanunu (Climate Law)[1][2]
No. Kanun No. 7552 (Resmî Gazete No. 32951, 9 July 2025) · July 2, 2025
Read the text ↗Carried by
Implementation
- Climate Change Presidency (İklim Değişikliği Başkanlığı), Ministry of Environment, Urbanisation and Climate Change: sets up the ETS, allocation, monitoring, reporting and verification, permits and sanctions
- Carbon Market Board (Karbon Piyasası Kurulu), chaired by the Minister: approves the national allocation plan, sets the pilot phase
- Energy Market Regulatory Authority (EPDK): rules for operating the ETS market and market surveillance
- Enerji Piyasaları İşletme A.Ş. (EPİAŞ), market operator: runs the ETS market and the allowance registry
Stated objective
Fight climate change « in line with the green growth vision and the net-zero emission target »; greenhouse gas emissions are to be reduced in line with the Nationally Determined Contribution, the net-zero target and the strategies and action plans of the Climate Change Presidency. The net-zero target is set for 2053.[1][10]
According to Law No. 7552 (articles 1 and 5) and Türkiye’s Long-Term Climate Strategy (Climate Change Presidency)
Main measures
- Emissions trading system: set up by the Climate Change Presidency, with a cap consistent with the net-zero target; covered installations need a greenhouse gas emission permit and must each year surrender allowances equal to their verified emissions; free allocation may be based on historical emissions or benchmarks; the market is operated by EPİAŞ.[1]
- Governance: a Carbon Market Board chaired by the Minister of Environment, Urbanisation and Climate Change (deputy ministers of seven ministries, the Strategy and Budget Presidency, the Capital Markets Board, EPDK and the Climate Change Presidency) approves the national allocation plan and the share of free allowances; an Advisory Board chaired by the Union of Chambers and Commodity Exchanges (TOBB) gathers business, finance and professional organisations.[1]
- Offsetting: part of the surrender obligation may be met with carbon credits from a national crediting system; domestic projects on voluntary carbon markets must register with the Presidency.[1]
- Revenues: permit fees, primary-market allowance sales, half of the market operator’s ETS revenue and half of the fines are earmarked for green transformation and the fight against climate change; up to 10% may fund « just transition » measures.[1]
- Sanctions: each allowance not surrendered is fined at twice the higher of the average primary and secondary market prices of the last three months of the reporting year; fines are capped at 50 million Turkish lira per act and reduced by 80% during the pilot phase.[1]
- A Border Carbon Adjustment Mechanism (SKDM) on imported goods may be established, its rules to be set by the Ministry of Trade.[1]
- Pilot phase (Carbon Market Board decisions): 2026 and 2027 emissions; Category B and C installations in electricity generation, cement, iron and steel, aluminium and fertilisers; 2026 = reporting only; price mechanism from the 2027 system year; free allocation of 100% for every sector under the benchmark method.[7][8]
In data
GHG emissions
580MtCO2e
2024
Renewable energy share
12%
2021
Timeline
Türkiye announces its 2053 net-zero emissions target[10]
- Under debate
Bill No. 2/2927 (« İklim Kanunu Teklifi ») submitted to the Grand National Assembly[2]
Tabled by AK Party members of Parliament; lead committee: Environment Committee.
The Environment Committee adopts its report (order paper No. 198)[2]
- In force
Published in the Official Gazette and in force[1]
Resmî Gazete No. 32951; under its article 19 the law enters into force on the date of publication. The ETS starts with a pilot phase before full application.
First meeting of the Carbon Market Board (KPK/2026/1): scope and duration of the pilot phase[8][7]
Decisions made public by the Climate Change Presidency on 3 September 2026: pilot covering 2026 and 2027 emissions; five sectors; reporting only for 2026; price mechanism from the 2027 system year; free allocation of 100% under the benchmark method.
Türkiye Emissions Trading System Regulation published and in force[5]
Resmî Gazete No. 33353. The ETS covers Category B installations (more than 50,000 and up to 500,000 tonnes of CO2 equivalent a year, calculated on installed capacity) and Category C installations (more than 500,000 tonnes); it starts with a pilot period and repeals the 2014 regulation on monitoring greenhouse gas emissions.
Procedures and principles for the ETS pilot phase approved[8]
Approved by decision No. 18626 and published on 1 October 2026: sub-installations, benchmark calculation, free allocation, activity-level reporting and verification. The obligation to surrender allowances starts with 2027 emissions.
Regulation on the operation of the ETS market published and in force[6]
Issued by the Energy Market Regulatory Authority (Resmî Gazete No. 33407): primary market (auctions), secondary markets and registry, run by the market operator; for 2026 emissions, a complementary allowance price mechanism may apply on request.
- Upcoming: the outcome is not known
Deadline for public bodies to prepare or adapt their planning instruments and for local climate action plans[1]
Set by transitional article 2 of the law; can be extended by up to one year.
- Upcoming: the outcome is not known
End of the three-year period for ETS installations to obtain a greenhouse gas emission permit[1][5]
Three years after the law’s entry into force (transitional article 1); the Climate Change Presidency may extend it by up to two years on a Carbon Market Board decision.
The debate
Citoyen takes no position: arguments are reported as their authors put them.
According to its supporters
- Emel Gözükara Durmaz (AK Party), first signatory, presents the law as based on the President’s 2053 net-zero target and « green growth » vision, and says the emissions trading system will encourage clean production in industry and increase sectors’ competitiveness.[4]
- According to the same speaker, all revenue raised under the emissions trading system will go to green transformation, climate investment and just-transition measures, and the law will help reduce energy dependence and protect competitiveness in foreign trade.[4]
- The chair of the Environment Committee, Mehmet Galip Ensarioğlu, argues that Türkiye does its share under the principle of common but differentiated responsibilities while taking its development priorities into account, and points to investment in domestic and renewable energy sources in line with the 2053 target.[3]
According to its opponents
- Speaking for the CHP group, Talat Dinçer says the text is in substance a « national emissions trading system » law and that none of the proposals of earlier parliamentary work on climate change were taken up.[3]
- Speaking for the İYİ Party group, Yasin Öztürk argues that the law sets a 2053 net-zero target without saying how, with which policies or which oversight it will be reached, and that free allocation of emission allowances is left undefined.[3]
- Opposition MPs Şenol Sunat and Ayyüce Türkeş Taş point to the absence of a coal phase-out plan, of sectoral reduction targets and of social measures for coal workers.[4]
- Ali Mahir Başarır (CHP), speaking against before the final vote, accepts that a climate law is needed but says universities, environmental associations and municipalities were not involved in drafting it.[4]
Indicators to watch
- Greenhouse gas emissions · World BankSee the card →
- Renewable energy share · World BankSee the card →
- ETS allowance prices on the primary and secondary markets · EPİAŞno Citoyen card yet
- Verified emissions and free allocation of ETS installations · İklim Değişikliği Başkanlığıno Citoyen card yet
Sources
- [1]İklim Kanunu, Kanun No. 7552, Kabul Tarihi: 2/7/2025 –Resmî Gazete, Sayı 32951, July 9, 2025
- [2]İklim Kanunu Teklifi (2/2927), kanun teklifi bilgileri –Türkiye Büyük Millet Meclisi
- [3]TBMM Tutanak Dergisi, 28. Dönem 3. Yasama Yılı, 103'üncü Birleşim –Türkiye Büyük Millet Meclisi, July 1, 2025
- [4]TBMM Tutanak Dergisi, 28. Dönem 3. Yasama Yılı, 104'üncü Birleşim –Türkiye Büyük Millet Meclisi, July 2, 2025
- [5]Türkiye Emisyon Ticaret Sistemi Yönetmeliği –Resmî Gazete, Sayı 33353, August 27, 2026
- [6]Türkiye Emisyon Ticaret Sistemi Piyasasının İşletilmesine İlişkin Yönetmelik (Enerji Piyasası Düzenleme Kurumu) –Resmî Gazete, Sayı 33407, October 21, 2026
- [7]TR ETS pilot uygulama dönemine yönelik Karbon Piyasası Kurulu toplantı kararlarına (KPK/2026/1) ilişkin duyuru –İklim Değişikliği Başkanlığı, September 3, 2026
- [8]TR ETS Pilot Uygulama Dönemine İlişkin Usul ve Esaslar Yayımlandı –İklim Değişikliği Başkanlığı, October 1, 2026
- [9]TR ETS Pilot Uygulama Dönemi İzleme Metodolojisi Planlarının Sunulma Süresinin Uzatılması Hakkında –İklim Değişikliği Başkanlığı, October 14, 2026
- [10]Türkiye’s Long-Term Climate Strategy –İklim Değişikliği Başkanlığı