Turkey Plans Domestic CBAM, Targeting 2027 Legislative Framework

Turkey will prepare legislation for a domestic Carbon Border Adjustment Mechanism in 2027, according to an updated national strategy published on November 10 that ties Ankara's carbon pricing agenda directly to EU trade rules now in force.

The Ministry of Trade's revised Green Deal Action Plan for 2026–2030 sets out 11 policy areas, 41 objectives and 142 actions covering the country's green and industrial transformation. A Turkish border carbon mechanism sits among the priorities, alongside the national Emissions Trading System whose implementing regulation entered into force in August 2026.

The ETS pilot phase is underway. The system covers major industrial and energy installations.

What does the timeline look like?

Authorities intend to undertake an impact assessment and draft legislation for a national border carbon mechanism during 2027. Between 2027 and 2028, Turkey plans to develop a CBAM-style emissions data mechanism resembling the EU's CBAM Registry — a digital infrastructure that would let authorities assess industrial emissions intensity, carbon costs and potential product coverage.

The border mechanism is designed to complement, not replace, the domestic ETS. The Green Deal Action Plan frames both instruments as tools for industrial competitiveness.

Why is the EU decisive for Turkish exporters?

The EU's CBAM entered its definitive phase on January 1, 2026. Importers of covered products must account for embedded emissions through certificate obligations. The initial sectors are iron and steel, aluminium, cement, fertilisers, electricity and hydrogen.

The bloc matters more to Turkey than to almost any other trading partner in these sectors. SteelOrbis reports that the EU accounts for approximately 47% of Turkish exports of CBAM-covered products. That share leaves domestic manufacturers directly exposed to carbon-related trade costs set in Brussels.

The exposure cuts across the metals stream central to Turkey's industrial base. Steel and aluminium exporters face the certificate obligations first, which explains the priority Ankara has placed on aligning domestic carbon pricing with EU requirements.

How does Turkey's move fit the wider pattern?

The announcement follows reports that the EU plans to exempt the United Kingdom from CBAM requirements, because London will deploy its own border levy largely synchronized with the European mechanism. Turkey's initiative points in the same direction: jurisdictions building domestic carbon pricing systems that Brussels can recognize, rather than accepting certificate obligations designed elsewhere.

The OECD has noted growing international interest in border carbon measures. The organization stresses that compatible emissions accounting and recognition of carbon prices paid abroad will be essential to avoid trade distortions. That requirement defines the technical task ahead for Ankara — a Turkish ETS price must be credible and measurable enough for the EU to credit it against CBAM obligations.

What happens next?

The first milestone is procedural: the impact assessment and draft legislation due in 2027. The digital emissions data mechanism follows in 2027–2028, and its design will determine whether Turkish exporters can prove carbon costs already paid at home.

The stakes extend beyond trade defense. Ankara has framed the emerging carbon market and border mechanism as instruments that must protect exporters while supporting its 2053 net-zero emissions ambition.

The decisive test arrives earlier than the net-zero date. If the EU recognizes Turkey's carbon pricing as equivalent, roughly half of the country's CBAM-covered exports gain a cost shield. If not, Turkish steel, aluminium and cement enter the certificate system on unfavorable terms. The 2027 legislative work determines which outcome materializes.