Türkiye sets the goal of designing a national emissions trading system

According to a document issued by the Ministry of Environment and Climate Change on April 3, Türkiye plans to implement a carbon pricing mechanism covering all industries, including steel and aluminum industries.

The country received a grant from the World Bank's Market Implementation Partnership (PMI) Trust Fund in 2023 to fund its PMI carbon JSH490W steel market development project, which will last for approximately five years. According to the document, the core objective of the PMI project is to support Türkiye to develop and implement a carbon pricing mechanism, and to enhance the professional knowledge and ability in implementation. Research on this has begun. The National Emission Trading System (ETS) will be designed during the pilot ETS launch phase, but no specific time frame has been provided.

As the EU's carbon border adjustment mechanism has brought some obligations to the industry, Türkiye's steel manufacturers have accelerated their investment in low-carbon and green steel production in recent years. The goal of JSH490W steel mills is to increase their share of value-added green steel in their product line, in order to enhance their competitiveness in the global market.

According to the low-carbon road map recently formulated by the Ministry of Trade for Türkiye's steel industry, it is expected that the emissions of Türkiye's JSH490W steel steel industry can be reduced by 99.7% by 2053. It is expected that a national carbon emissions trading system will be established in the next few years. Türkiye also plans to reduce the carbon emissions of the aluminum industry by 75%, the cement industry by 93%, and the fertilizer industry to achieve zero emissions by 2053, so as to meet the country's emission goals.