Turkey to launch carbon market in 2027 under new Emissions Trading System

Tuesday, 23 June 2026 13:50:53 (GMT+3)   |   Istanbul

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

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

ETS revenues to support just transition

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

Private sector expected to play a key role

The deputy minister emphasized that the ETS is designed to directly support emissions reduction efforts while maintaining strong private-sector involvement. She noted that 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.

Addressing Turkey’s priorities for COP31, Varank said the country intends to advance its 2035 targets through the conference’s action agenda. According to her remarks, the initiative has already attracted broad international support, with participating countries expected to voluntarily pursue the agreed objectives under a proposed monitoring mechanism.

Electrification and grid investment highlighted

Varank also underlined the importance of electrification in reducing emissions. She stated that achieving a global electrification rate of 35 percent would make a significant contribution to emissions reduction efforts. While renewable energy technologies have become more affordable, she identified insufficient grid infrastructure as one of the main obstacles to accelerating the energy transition.

COP31 will take place in Antalya from November 9-20, with Turkey expecting approximately 100,000 participants. Varank described the event as one of the largest international gatherings ever hosted by the country and said Turkey's priority as COP31 president will be to create an inclusive, trust-based and results-oriented negotiation environment for participating countries.


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