Turkey has adopted rules for a pilot emissions trading system covering electricity generation, cement, iron and steel, aluminium, and fertilisers. The pilot runs in 2026 and 2027, and installations emitting at least 50,000 tonnes of CO2 equivalent must participate. In 2026, companies only need to monitor, report and verify emissions. The first allowance surrender applies to emissions from 2027, with allowances due by the last working day of November 2028. Allowances for the 2027 pilot year will be allocated free of charge, so Turkish producers may not face direct carbon costs yet. That matters for EU importers because CBAM payments can only be reduced if a carbon price was actually paid in the country of origin. Turkey plans different benchmarks for power plants and industry, and offsets may be allowed with approval from the Carbon Market Board. The full ETS period is expected to run from 2028 to 2035. The rules could still change during the pilot, so importers and investors should track whether the Carbon Market Board amends the scope or benchmarks. For Czech companies importing covered goods from Turkey, verified emissions data from suppliers will be key for CBAM reporting.
