Regulation on the Operation of the Turkish Emissions Trading System Market Published
The Regulation on the Operation of the Turkish Emissions Trading System Market (Regulation), prepared by the Energy Market Regulatory Authority, was published in the Official Gazette dated October 21, 2026 and numbered 33407, and entered into force.
The Regulation governs the operation of the Emissions Trading System (ETS) market, market participation, allowance transactions, and financial obligations.
The key provisions of the Regulation are summarized below:
Structure and Operation of the ETS Market
- The ETS market is operated by Enerji Piyasaları İşletme A.Ş. (EPIAS). Allowances are sold through auctions in the primary market. The allowance reference price established through the auctions is used to calculate the price payable for the allocated lots. Secondary markets comprise the spot allowance market and, if established, the futures allowance market.
Market Participation and Allowance Transactions
- Undertakings covered by the ETS must open an account in Transaction Registry System (İşlem Kayıt Sistemi – IKS) and sign the required participant agreements. They must also complete the relevant registration and participation procedures to trade in the market.
- Free allowances are allowances allocated for free of charge under the ETS legislation. Following approval by the Directorate of Climate Change, these allowances are transferred to the relevant installation accounts. They may be transferred between installations belonging to the same undertaking or sold through bilateral agreements and secondary markets.
Financial Obligations and Trading Restrictions
- Market participants are required to provide the necessary collateral and comply with margin calls. Cash, certain electronic letters of guarantee, and debt securities are accepted as collateral. Allowances may not be used as collateral under collateral agreements. Free allowances subject to surrender obligations may not be attached unless they have been transferred out of the IKS account to which they were initially credited. This protection against attachment does not apply to all allowances, but only to those meeting the conditions prescribed by the Regulation.
- Invoice amounts must be paid by the second business day following the publication of the final settlement notification. In the event of default, default interest accrues, collateral may be drawn upon, and trading is suspended for as long as the default continues.
- Participants who fail to submit their verified greenhouse gas emissions reports on time are prohibited from carrying out transactions involving the allowances in their accounts, except for transactions necessary to fulfill surrender obligations. • Trade confirmations containing errors attributable to EPIAS may be challenged within 20 minutes of notification, while invoices may be challenged in writing within eight days of notification. Such objections do not relieve participants of their respective obligations.
Transitional Provisions
- Until the IKS and the relevant markets become operational, a virtual simulation will be conducted without giving rise to any delivery or payment obligations.
- Where allowances equivalent to the amount of verified greenhouse gas emissions for 2026 are requested, the Supplementary Allowance Price Mechanism may apply. These allowances are transferred to the retirement account of the relevant installation and are not considered in fulfilling surrender obligations. Undertakings covered by the ETS should assess their market participation procedures and financial obligations and make the necessary preparations to ensure compliance.
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