31 August 2026
What Is a Carbon Market?
Türkiye's Emissions Trading System (ETS) regulation is now in force: the state caps total emissions, companies trade allowances, and scarcity is created deliberately. Allowances are auctioned in the primary market and traded between companies in the secondary market, with a stability reserve and price floors/ceilings. Ahead of COP31 this is Türkiye's most concrete policy instrument.
Key takeaways
- The regulation establishes a primary market for allowance auctions and a secondary market for inter-company trading.
- A deliberate scarcity of emission allowances is created by the state to incentivize private sector decarbonization efforts.
- The framework includes a market stability reserve alongside price floors and ceilings to prevent extreme volatility.
- This ETS represents Türkiye's most significant and concrete policy instrument presented for the upcoming COP31 negotiations.
Türkiye's Emissions Trading System (ETS) regulation is now in force: the state caps total emissions, companies trade allowances, and scarcity is created deliberately. Allowances are auctioned in the primary market and traded between companies in the secondary market, with a stability reserve and price floors/ceilings. Ahead of COP31 this is Türkiye's most concrete policy instrument.