Implementation of Carbon Tax and Emissions Trading System in Türkiye

Abstract

The industrial revolution, which started with the invention of coal-fired steam engines, led to the intensive consumption of fossil fuels and environmental pollution all over the world. In the 1960s, the first international steps were taken to prevent environmental pollution. The main ones are the United Nations Framework Convention on Climate Change, the Kyoto Protocol, and the Paris Agreement. Building on the Paris Agreement, the European Union announced the Green Deal and prepared the carbon border adjustment mechanism in line with the objectives of the Deal. The peculiarity of this mechanism is that it will price carbon not only for European producers, but also for the countries with which Europe trades. Large economies that do not want to lose the European Market are updating their own emissions trading systems in line with the European Union emissions trading system. The aim of this study is to propose a model for a carbon market to be established in Türkiye based on the carbon markets implemented in selected large countries.