Draft Regulation on Operation of Carbon Markets is Submitted to Public’s View
The Draft Regulation on the Operation of Carbon Markets (“Draft Regulation”) as a part of secondary legislations to Draft Climate Law is submitted to public’s view. The Draft Regulation regulates the procedures and principles for the establishment and operation of carbon markets for the distribution and trading of allowances within the scope of the emissions trading system (emisyon ticaret sistemi) aiming to encourage the reduction of greenhouse gas emissions in a cost-effective and economically efficient manner.
Enerji Piyasaları İşletme Anonim Şirketi (“EPIAS”) is designated as the Market Operator and its responsibilities have been stipulated under the Draft Regulation. Accordingly, EPIAS is entitled to carry out the operation of primary and secondary carbon markets, conduct settlement management, accrual, collection activities as well as payment of invoices resulting from settlement and data publishing. In order to ensure the integrity of the emissions trading system, the Market Operator is required to establish a Transaction Recording System (İşlem Kayıt Sistemi), which is an electronic data system where the issuance, retention, transfers between accounts, cancellation and redemption of allowances are carried out and monitored in accounts of the right holders.
The Draft Regulation also covers general principles of carbon markets, registration to carbon markets, auction processes and financial issues.
Considering the role of carbon markets in fight against climate change, the incentive mechanisms to be created in carbon markets with the entry into force of this Regulation is aimed to have a positive impact on the climate crisis. The draft legislation regulating the free carbon allowances is expected to follow the Draft Regulation in order to complete the system stipulated under Draft Climate Law.
