Automotive Ekports February 2024

‘Emissions trading system best
tool for carbon pricing in Türkiye’
February 2024
Carbon pricing is spreading across the globe, whether
in rich or poor countries, as one of the most significant
tools to combat climate change as the world is still
far from meeting the 2015 Paris Agreement’s goal of
limiting warming to 1.5 degrees Celsius and emissions
are continuing to rise.
With international debates on the advantages and
disadvantages of carbon pricing gaining heat, Türkiye’s
green transformation and policies to fight global
warming are also taking shape.
An Emissions Trading System (ETS) is the wellsuited
tool for carbon pricing for Türkiye, according
to technical studies, Professor Halil Hasar, Director
of Climate Change Presidency of Türkiye, told in an
exclusive interview.
“Technical studies conducted in the scope of the
Partnership for Market Readiness (PMR) Project
supported by the World Bank show us the emissions
trading system is the most cost-effective carbon
pricing option for Türkiye. Furthermore, an advisory
decision was taken for the development of a National
Emissions Trading System in the Climate Council,
organized in 2022” he elaborated.
Both the 12th Development Plan which reflects the
country’s 2053 net-zero goal, as well as the Medium-
Term Program mirror the strategic dimension of an
ETS, Prof. Hasar said, reminding that in Türkiye’s
Nationally Determined Contributions submitted within
the scope of the Paris Agreement, ETS is among the
main implementation tools for reducing greenhouse
gas emissions in the industry and electricity production
sectors.
Carbon pricing places a fee on carbon emissions and
thus encourages lower pollution. Experts agree that
initially, carbon pricing can affect the economy and
raise energy prices, however, in the long-term, the
benefits outweigh the disadvantages while the revenue
gained from ETS can be used to spend on and invest
in new green projects.
As the World Bank put it, “allows emitters to decide
to either transform their activities and lower their
emissions, or continue emitting and paying for their
emissions.”
Prof. Hasar explained that carbon pricing emerges with
two main forms of implementation, one of which is
ETS, and the other is carbon taxing.
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