Turkey Approves Carbon Pricing for Shipping to Align with EU Standards

The Turkish parliament recently approved plans for a carbon pricing mechanism in the country’s shipping sector. The amendment to the ports law will allow Turkey to tax shipping emissions, with fees collected from shipowners for CO2 emissions released by commercial ships at Turkish seaports. This move, published in the Official Gazette on July 9, is expected to regulate over 10 million tons of CO2, equivalent to Luxembourg’s annual emissions.

This approval precedes Turkey’s broader carbon market plans, including the establishment of an Emissions Trading Scheme (ETS) as outlined in the Climate Change Mitigation Strategy and Action Plan for 2024 to 2030. The ETS aims to align with the EU’s carbon market and the Carbon Border Adjustment Mechanism (EU CBAM), especially as EU container transshipment traffic increases in Turkish ports.

With concerns about potential trade diversion to avoid EU carbon taxes, the implementation of the ETS in shipping will not only close this loophole but also harmonize maritime trade between Turkey and its major trading partners. Data from the Turkish Transport Minister shows significant growth in container transshipment traffic, with EU countries accounting for the largest share of destinations, highlighting the importance of aligning with EU carbon pricing mechanisms.

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