An Initial Overview Of The Draft Regulation On The Emissions Trading System

A. Intro

The control of greenhouse gas emissions has, in recent years, become one of the core instruments in combating climate change and has been placed at the center of environmental and energy policies in many countries. In this context, carbon pricing mechanisms have assumed a strategic role in the integration with global climate policies. Many countries, particularly the European Union ("EU"), have been reinforcing their regulatory frameworks in this field through market-based instruments such as the Emissions Trading System ("ETS"). Türkiye has joined this transformation by laying the groundwork for a carbon pricing system through the Climate Law No. 7552 ("Law"), and, accordingly, the Turkish Emissions Trading System Draft Regulation ("Draft") has been prepared by the Climate Change Presidency and submitted for public consultation until 4 August 2025. While the Draft sets out the implementation principles regarding the ETS, it also includes both the