Green Transition: The Emissions Trading System (ETS) In Türkiye's Adaptation To Global Climate Action

I. Introduction

In the first article of our green transition series, the legal framework underlying Climate Law No. 7552 ("the Law") was examined, with a focus on national policies and international obligations. In this article, the Draft Regulation on the Emissions Trading System ("ETS"), prepared in line with the legal framework established by the Law, is evaluated.

With the entry into force of the Law, Türkiye's green transition process has begun to take concrete shape not only at the level of policy objectives but also through secondary legislation guiding implementation. The Draft ETS Regulation, presented to the public on 22 July 2025,¹ envisions a transition to a market-based mechanism for managing national greenhouse gas emissions. It has been prepared as a regulatory tool that considers Türkiye's foreign trade and competitive conditions, particularly in relation to the European Union's Carbon Border Adjustment Mechanism (CBAM). In this respect, the ETS