Turkey has taken two significant steps towards a low-carbon economy in the same week. On July 31, 2025, the Draft Regulation on the Turkish Emissions Trading System (TR ETS) was opened for public consultation, and on August 1, 2025, the Draft Regulation on the Turkish Carbon Credit and Offset System was released for public feedback.

These two regulations have the potential to create fundamental changes in companies’ production, financing, and reporting processes in the coming years. In particular, the introduction of the concept of the national carbon credit, the “Turquoise Credit”, signals the beginning of a new era that the business world and financial sector must closely follow.

Why is the carbon market important?

The carbon market shapes not only the environmental but also the economic dimension of the fight against climate change.

  • Carbon pricing will no longer be an invisible environmental cost for businesses but a tangible item reflected in their financial statements.

  • A national carbon market will have strategic importance for export-oriented companies in terms of compliance with the EU’s Carbon Border Adjustment Mechanism (CBAM).

  • For banks and investors, carbon market data will provide a measurable basis for use in ESG reporting.

Therefore, carbon credits and ETS are not merely environmental policies but will become decisive tools in companies’ risk management, financing decisions, and competitiveness.

Turquoise Credit

The Draft Regulation on Carbon Credit and Offset, published on August 1, 2025, introduces the definition of the “Turquoise Credit” for national carbon credits obtained through greenhouse gas reduction projects, corresponding to 1 ton of CO₂ equivalent.

These credits are directly linked to the TR ETS draft published on July 31, 2025. Facilities covered under ETS will be able to offset a certain percentage of their annual emission obligations with Turquoise Credits, which is expected to provide flexibility in managing carbon costs for businesses. At the same time, it brings with it the responsibility for companies to monitor and report their carbon emission data more transparently.

International and national connections

When evaluating the published draft at the international level, we can say that the Turquoise Credit system is designed to be compatible with Article 6 of the Paris Climate Agreement and the Green Deal. With the draft, a registry and verification infrastructure is being established to enable carbon credits produced in Turkey to be traded in international carbon markets. I can say that this infrastructure is of critical importance.

At the national level, the content of the draft is directly linked to the 2053 Net Zero Strategy, the 12th Development Plan, and the Turkish Sustainability Reporting Standards (TSRS). This takes carbon management out of being solely an environmental issue and integrates it into financial reporting and investment strategies. In the coming period, we may hear the concept of “Green Accounting” quite often.

What does it mean for the business world?

  • For industrialists and businesses: ETS obligations and carbon credits will now be part of cost calculations. Exporting companies will especially need to focus on CBAM compliance.

  • For the financial sector: Turquoise Credits will create a new asset class in banks’ green asset ratio (GAR/YVO) calculations. Carbon intensity will be taken into greater account in lending processes.

  • For investors: Carbon market data will become a critical metric in ESG-aligned investment decisions.

For company owners and executives, this process means restructuring business models by taking carbon costs into account. Businesses need to adapt their infrastructures and ERPs to these developments. It is clear that CEOs and CFOs will once again have a lot of work to do.

Conclusion;

I can say that the Turquoise Credit and ETS drafts are important milestones in Turkey’s green transition. These regulations will not only affect the environment but also the dynamics of the financial system and the business world. Banks may soon start requesting ESG scores, carbon footprints, and carbon credit (Turquoise Credit) certificates when granting loans. Especially in long-term loans, I believe banks evaluating these requirements will change their behavior sets towards offering longer maturities and more favorable interest rates.

For this reason, I believe that businesses should already have ESG ratings carried out, start measuring their carbon footprints, plan potential projects to generate carbon credits, and align their reporting infrastructure with TSRS. In this way, businesses will position themselves within the circular economy and declare their support for the United Nations’ 17 Sustainable Development Goals through clean production principles.

The carbon market is becoming a fundamental tool for ESG, sustainable growth, access to finance, and international competitiveness. The Turquoise Credit should be closely monitored as the first sign of this new era.

Bülent Görer