Skip to main content
HashnodeEvren Özmen CPA | Turkey Tax Advisor for Remote Workers, Digital Nomads & Foreign CompaniesEvren Özmen CPA | Turkey Tax Advisor for Remote Workers, Digital Nomads & Foreign Companies

Command Palette

Search for a command to run...

What is the Emissions Trading System (ETS)? - Turkey

What is the Emissions Trading System (ETS)?

Published
•3 min read•View as Markdown
What is the Emissions Trading System (ETS)? - Turkey
M
Mali Müşavir Evren Ozmen
I’m Evren ozmen, a CPA based in Istanbul, advising remote workers, freelancers, and international founders on Turkish tax and cross-border structuring. I focus on practical tax strategies around: 100% service export income deduction Tax residency in Turkey Company formation for foreigners Remote work and international income I break down complex tax rules into clear, actionable guidance — without losing the legal and compliance reality behind them. info@ozmconsultancy.com 🇹🇷 Türkiye genelinde; yazılım ve dijital ürün geliştiren şirketler, yurt dışına uzaktan hizmet sunan profesyoneller, Teknopark firmaları, oyun stüdyoları ve mobil uygulama şirketlerine Türkçe ve İngilizce mali ve vergisel danışmanlık hizmetleri sunuyoruz. 📘 Insights & Publications: https://medium.com/@evrenozmen 📩 For Online Tax Advisory & Accounting Services/Danışmanlık-Mali Müşavirlik Hizmetleri: info@ozmconsultancy.com

What is the Emissions Trading System (ETS)? - Key Changes and Future Outlook

The Emissions Trading System (ETS) is a mechanism aimed at reducing carbon emissions and greenhouse gases. This system is an essential step for an environmentally friendly economy and is set to be implemented in Turkey soon. If you want to manage your environmental impact and take strategic steps for your business's future, you must read this article.

What is the Emissions Trading System (ETS)?

The Emissions Trading System is a system that allows businesses to trade carbon allowances after being allocated a certain amount of emissions. This incentivizes businesses to develop more efficient solutions while holding those who increase emissions accountable for the excess through trading allowances.

Why is this System Important?

  • Fighting Climate Change: ETS is crucial in preventing global warming. Governments and businesses participate to reduce greenhouse gas emissions.

  • Greenhouse Gas Reduction: It helps reduce carbon emissions, playing a crucial role in environmental protection.

  • Green Transformation: ETS supports the transition to green energy and creates opportunities for green investments.

Areas of Application for the Emissions Trading System

  1. Greenhouse Gas Emissions Tracking: Companies participating in the ETS will be required to regularly report their emissions.

  2. Carbon Pricing: A price will be set on carbon emissions, and allowances will be traded on the market.

  3. Government Oversight: The Energy Markets Operation Company (EPİAŞ) will monitor and manage the ETS market.

  4. Allowance Distribution: Emission allowances will be distributed to sectors based on a national plan.

Frequently Asked Questions (FAQ)

1. Is Participation in ETS Mandatory? No, but starting in 2025, it will be mandatory for all businesses.

2. Is ETS Suitable for Small Businesses? Yes, the system will provide opportunities for small businesses as well. A pilot period will allow for lower initial obligations.

3. Which Sectors Will Be Affected by ETS? Industries, energy, transportation, and large trading companies will be included in the ETS system.

4. What Happens if a Business Does Not Participate in ETS? According to the proposed law, businesses that do not participate will have their emission allowances revoked, and new allowances will not be issued for 3 to 6 months.

Benefits of the Emissions Trading System

  • Legal and Regulatory Compliance: Participation is crucial to stay compliant with environmental laws, avoiding heavy penalties.

  • Financial Support: ETS will provide funds for green transformation, allowing businesses to make eco-friendly investments.

  • Corporate Image: Being an environmentally friendly company will have a positive impact on your brand image.

Details of the Proposed Law and Implementation Process

  • Greenhouse Gas Monitoring and Penalties: Businesses that fail to meet reporting and tracking obligations will face administrative fines ranging from 500,000 to 5 million TL.

  • Border Carbon Adjustment Mechanism: The carbon emissions of imported goods will be monitored to control the impact of Turkey's foreign trade on greenhouse gases.

  • Pilot Period: A pilot period will take place before the full implementation of the law, with a 80% discount on penalties during this phase.

Conclusion and Tips for Your Business

Why Should You Work with Us?

  • Understanding and implementing the right strategies for the Emissions Trading System is crucial. By participating in ETS and complying with regulations, you will stand out as an environmentally friendly company.

  • What Will Your Business Lose If You Don’t Work With Us? You risk facing high fines, damage to your corporate image, and inefficient use of carbon allowances in the future.

Get in Touch for Strategic Solutions! The emissions trading system and climate change laws are critical to your business's future. Contact us, and we will help you grow in a green economy!

Contact us now: Get in Touch with Us!

To learn more about the Emissions Trading System and take the right steps, reach out to us today!

info@ozmconsultancy.com

#what-is-the-emissions-trading-system
19 views

Comments

Join the discussion

No comments yet. Be the first to comment.

More from this blog

E

Evren Özmen CPA | Turkey Tax Advisor for Remote Workers, Digital Nomads & Foreign Companies

3276 posts

--Özmen Mali Müşavirlik-- www.ozmconsultancy.com-- info@ozmconsultancy.com-- 0 216 352 29 61