Reconsidering Türkiye’s Carbon Pricing Policy

Abstract

Türkiye has committed to net zero emissions by 2053. However, achieving this target with current mitigation tools seems difficult. In order for Türkiye to achieve the zero emissions targets to which it has committed itself by the middle of the century, a comprehensive mitigation policy is needed, and carbon pricing should be at the center of this policy. The most appropriate option for this is to introduce a carbon tax. However, a carbon tax would probably be more difficult to accept publicly, so it would need to be supported by other measures. In this context, the study includes the mitigation designs most effective for Türkiye. For this purpose, the study first evaluates Türkiye’s national emissions targets and the efforts being made to achieve these. The study then examines carbon pricing options and other mitigation measures under two separate headings. The study has reached the following main conclusions: i) a carbon tax adjusted according to Türkiye’s emissions targets should be implemented, ii) the income provided should be used to achieve general objectives, iii) a border adjustment mechanism should be introduced to protect the competitiveness of Türkiye’s emissions-intensive industries, and iv) mechanisms that encourage emissions mitigations should be developed.

Keywords

• carbon pricing
• emissions mitigation
• carbon tax
• emissions trading system
• tax and subsidy system