Türkiye’s New Climate Law & ETS: Turning Regulation into Opportunity
On July 9, 2025, Türkiye’s Climate Law No. 7552 entered into force, creating the legal foundation for the country’s first Emissions Trading System (TR ETS). This landmark law is central to achieving the 2053 net-zero target, while also protecting exporters against the EU’s Carbon Border Adjustment Mechanism (CBAM).
Key Highlights of the TR ETS
Pilot Phase (2026–2027): All allowances allocated for free, with discounted fines (80%). A low-risk “dress rehearsal” period for businesses.
First Implementation (2028–2035): Gradual transition to allowance auctions, stricter caps, and full penalties for non-compliance.
Strategic Positioning: By aligning with EU standards, Türkiye ensures that carbon revenues stay in the domestic economy, funding the green transition.
Turkuaz Credits: Domestic offset system enabling companies to meet up to 10% of their obligations while stimulating local green investments.
Institutional Framework: Carbon Market Board (strategic decisions), Directorate of Climate Change (permits & MRV), and EPİAŞ (market operator) ensure transparent governance.
Why It Matters for Businesses & Investors
This framework is not only about compliance—it is a strategic opportunity. Companies that act now can:
Secure early compliance with robust MRV systems and emission permits.
Integrate carbon costs into financial models, M&A due diligence, and long-term investment planning.
Capture competitive advantage in EU markets by reducing exposure to CBAM.
Invest in renewable energy, efficiency projects, and generate Turkuaz Credits for added financial benefit.
Torun Law Firm’s Advisory Framework
At Torun Law Firm, we guide clients through this evolving regulatory landscape with a multidisciplinary approach:
Regulatory Compliance & Permitting: Advising on permit applications, MRV systems, and secondary regulations under Law No. 7552.
Carbon Market Strategy: Helping businesses optimize allowance portfolios, participate in trading, and leverage offset mechanisms.
Cross-Border Transactions: Aligning compliance with EU ETS and CBAM requirements to secure export competitiveness.
Investment & Arbitration Advisory: Structuring green investments, managing risks, and providing representation in potential disputes.
Sector Expertise: Energy, heavy industry, and international trade are at the core of our advisory, ensuring tailor-made solutions for both domestic and foreign investors.
Conclusion
The TR ETS is more than an environmental obligation—it is a strategic instrument shaping Türkiye’s economic future. Companies that engage early will not only minimize compliance risks but also position themselves as leaders in the emerging green economy.