TL;DR: On top of MRV infrastructure that has been running since 2017, Türkiye is now building its own Emissions Trading System. As the pilot phase approaches, the question for industry is no longer "will it happen" but "am I ready".
What Is an ETS?
An Emissions Trading System sets a cap on carbon emissions and creates a market for the rights underneath it. Each installation receives a number of allowances; those that exceed it buy from the market, those that emit less can sell. The logic is simple: reduction is rewarded.
Why Is Türkiye Building an ETS?
- Paris Agreement commitments and the 2053 net-zero goal.
- EU CBAM: an opportunity to keep part of the carbon cost domestic instead of paying it at the EU border.
- Investment climate: carbon pricing is becoming a credit condition for global financial institutions.
Pilot Timeline and Scope
The roadmap is phased: simulation and pilot first, then mandatory compliance. Expected pilot sectors:
- Power generation (coal, natural gas)
- Cement
- Iron & steel
- Aluminium
- Refining and petrochemicals
- Glass, ceramics, paper
The threshold is generally 25,000 tCO2e/year; installations above it fall directly inside the scheme.
How Will Allowances Be Allocated?
Most allowances will be free in the early years; the free share will gradually fall as auctioning rises. Lessons from EU ETS are clear: free allocation should reward efficient operators and put pressure on laggards.
Preparation Roadmap for Industry
1. Mature Your MRV
An annual emissions report is no longer enough. Monthly, even hourly tracking enables allowance forecasting and hedging decisions.
2. Carbon Intensity per Facility and Product
Total emissions are not enough — per-tonne-of-product emissions matter. Allowances are largely benchmark-based, so beating the sector average translates directly into profit.
3. Prioritise Energy Efficiency
When the carbon price sits at 30–80 EUR/tCO2e, paybacks for heat recovery, motor optimisation and waste-heat projects halve.
4. Supply Mix and Renewable Contracts
PPAs and renewable certificates reduce Scope 2 emissions. Even outside ETS scope, they lower the net carbon bill.
5. Data Backbone
The meter → facility → corporate reporting pipeline must be automated. Excel-based estimates increase verification cost and leave you defenceless in allowance disputes.
The Role of ETTA
ETTA brings together hourly consumption, production data, emission factors and supply mix on a single platform. The result: verifiable carbon accounts per facility and product, ETS scenario simulation, and a work-order layer that ties reduction actions back to the field.
Bottom Line
Will ETS be a cost or an opportunity? It depends on how fast you prepare. Those who measure and reduce win; those who wait pay for someone else''s reduction performance.