Turkish President Tayyip Erdogan's ruling AK Party submitted to parliament on Thursday a climate change-related bill envisaging the establishment of a carbon market board and an emissions trading system, or ETS.
The text of the draft law, aimed at reducing greenhouse gas emissions in line with Turkey's commitment to become a net-zero emission economy by 2053, said it will regulate planning and implementation tools used to reach this goal.
The ETS, where greenhouse gas emission allowances are bought and sold, and the carbon market board will be established by the climate change department of the Environment Ministry, the text said.
Companies that fall within the scope of the ETS will be required to obtain a greenhouse gas emission permit in order to carry out activities that cause such emissions.
The allowances will be accepted as capital market instruments, and the climate change department will be able to earn income under this which can be used to support climate-friendly investments.
The carbon market board will determine carbon pricing instruments and decide on the distribution of allowances and related policies and actions related to the ETS.
(Reuters, February 20, 2025)
