New Turkish Industrial Emissions Rules Set for 2026
Turkey's industrial sector is preparing for a significant regulatory shift beginning on January 1, 2026, with the introduction of new rules governing emissions and energy consumption. The changes are expected to heavily impact high-emission sectors such as plastics, chemicals, and heavy industry. This regulatory pressure is anticipated to create significant demand for industrial decarbonization and compliance-focused climatetech startups.
- The new regulations are part of Turkey's first comprehensive Climate Law, which establishes the legal framework for a national Emissions Trading System (ETS). This cap-and-trade mechanism is designed to help Turkey meet its goals of reducing greenhouse gas emissions by 41% from business-as-usual levels by 2030 and achieving net-zero emissions by 2053. - A pilot phase for the Turkish ETS is scheduled for 2026-2027, with full implementation to follow. During the pilot, facilities in sectors like electricity generation, cement, iron and steel, and chemicals that emit over 50,000 tonnes of CO2 equivalent annually will be included. - The establishment of the ETS is a direct response to the European Union's Carbon Border Adjustment Mechanism (CBAM), which will impose a carbon price on certain goods imported into the EU starting in 2026. Given that over 40% of Turkey's exports go to the EU, the ETS is crucial for maintaining the competitiveness of Turkish industries. - To support this transition, the World Bank has approved the Türkiye Green Industry Project, a $450 million initiative aimed at enhancing the green transformation of industrial firms. Of this, $250 million is allocated to the Small and Medium Enterprises (SMEs) Development Organization (KOSGEB) and $175 million to the Scientific and Technological Research Council of Türkiye (TÜBITAK) to foster green innovation. - In collaboration with the European Bank for Reconstruction and Development (EBRD) and the World Bank Group, Turkey has launched the Türkiye Industrial Decarbonisation Investment Platform (TIDIP). This platform aims to mobilize €5 billion in private sector investments by 2030 to decarbonize carbon-intensive sectors like steel, aluminum, cement, and fertilizers. - The new rules build upon Turkey's existing Monitoring, Reporting, and Verification (MRV) system, which has been in place since 2015 to track emissions from industrial facilities. This existing infrastructure will provide the data foundation for the new emissions trading system. - Turkish climatetech startups are emerging to address the new market demands. For instance, AIS Field has developed a robotic system for inspecting oil storage tanks, working with Turkish oil company Tupras. Other startups like Enwair are focused on developing high-capacity silicon-based anodes for electric vehicles, while Car4Future is creating a blockchain-based energy sharing network. - Non-compliance with the new emissions regulations will result in significant administrative fines. Entities that fail to surrender enough allowances to cover their emissions will face penalties and may have their emissions permits revoked. During the pilot phase, however, administrative penalties will be reduced by 80% to encourage initial compliance.
