{"id":1398,"date":"2024-03-04T13:35:48","date_gmt":"2024-03-04T10:35:48","guid":{"rendered":"http:\/\/atlas-scc.com\/?p=1398"},"modified":"2024-03-04T13:40:41","modified_gmt":"2024-03-04T10:40:41","slug":"emissions-trading-system-an-effective-tool-to-combat-climate-change","status":"publish","type":"post","link":"https:\/\/atlas-scc.com\/en\/emissions-trading-system-an-effective-tool-to-combat-climate-change\/","title":{"rendered":"Emissions Trading System: An Effective Tool to Combat Climate Change"},"content":{"rendered":"\n
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Emissions Trading System: An Effective Tool to Combat Climate Change<\/h2>\n\n\n\n

Nilg\u00fcn Aytekin \/\/ 04.03.2024<\/p>\n\n\n\n

The heightened discussion surrounding carbon pricing today stems from its recognized effectiveness in combatting climate change. Carbon pricing refers to a method of assigning a cost to carbon emissions in a country or region. By imposing some type of tax or fee on companies or industries due to their carbon emissions, the goal is to reduce emissions.<\/p>\n\n\n\n

Carbon pricing is typically executed through two primary mechanisms: Carbon Tax and Emissions Trading System (ETS). Here, we will delve into the operational principles of ETS and explore recent global developments in this regard.<\/p>\n\n\n\n

What is the Emission Trading System?<\/h4>\n\n\n\n

Emissions Trading System (ETS) is a market-based tool that aims to control carbon emissions and support the clean energy transition. This approach quantifies the social cost of greenhouse gas emissions by assigning a cost to carbon emissions and encourages low-carbon technologies. ETS presents pragmatic solutions within the framework of strategies aimed at curbing the rise in global temperatures, as outlined by the Paris Climate Agreement, aligning with the realities of today’s economic landscape.<\/p>\n\n\n\n

Emissions Trading System is based on buying and selling a certain amount of emission rights, that is, it includes carbon quota trading. Quotas are assigned to companies, taking into account their consumption in previous years and the country’s emission targets. Companies that exceed this quota pay a penalty, while companies that fall below the quota earn income by selling their excess quota. The practice ensures that total emissions are kept under control and encourages emission reduction.<\/p>\n\n\n\n

The European Union launched the world’s first emissions trading system in 2005 with the goal of fostering a shift towards low-emission systems while safeguarding industries’ competitiveness through carbon capping and trading mechanisms. Presently, there are 28 operational Emissions Trading Systems globally, encompassing 17% of total global emissions. In 2022, ETS applications collectively generated $63 billion in revenue, with the EU ETS accounting for $38 billion of this total. China leads as the nation with the largest national ETS. Meanwhile, Turkey is in the process of installing its own system.<\/p>\n\n\n\n

According to the recently published Carbon Market Report, it is seen that there is a 37.3 percent decrease in greenhouse gas emissions from the energy and industrial sectors with EU ETS practices compared to 2005 levels. These findings underscore the effectiveness of emissions trading systems in combating climate change.<\/p>\n\n\n\n

What is the status of T\u00fcrkiye ETS?<\/h4>\n\n\n\n

Our nation has embarked on establishing an emissions trading system by initiating the Greenhouse Gas Monitoring, Reporting, and Verification System (MRV) since 2015. Modeled after the EU ETS, ongoing efforts to set up this system include plans to incorporate major manufacturing industries (such as cement, iron-steel, refinery, ceramics, lime, paper, chemistry, glass) and power plants by 2025.<\/p>\n\n\n\n

Turkey’s need to establish an emissions trading system stems from two main objectives. The first of these is to reduce emissions in line with the nation’s 2053 net-zero emission target. The other objective is to ensure the implementation of the Green Deal Border Carbon Adjustment Mechanism (CBAM). The fact that carbon fees will be applied to products to be exported to the European Union under CBAM reveals the necessity for Turkey to adopt a carbon regime similar to the EU Emission Trading System. In the long run, alignment with the EU ETS will provide CBAM exemption to our country. Considering that 44% of our total exports are with EU countries, it is crucial for Turkey to strengthen carbon management and transition to a sustainable economy by establishing an emission trading system.<\/p>\n\n\n\n

Resources:<\/a><\/p>\n\n\n\n

“Principles of Carbon Emissions Trading” – World Bank, https:\/\/www.worldbank.org\/ <\/p>\n\n\n\n

State and Trends of Carbon Pricing 2023 \u2013 World Bank, May 2023, openknowledge.worldbank.org<\/p>\n","protected":false},"excerpt":{"rendered":"

Emissions Trading System: An Effective Tool to Combat Climate Change Nilg\u00fcn Aytekin \/\/ 04.03.2024 The heightened discussion surrounding carbon pricing today stems from its recognized effectiveness in combatting climate change. Carbon pricing refers to a method of assigning a cost to carbon emissions in a country or region. By imposing some type of tax or<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/atlas-scc.com\/en\/wp-json\/wp\/v2\/posts\/1398"}],"collection":[{"href":"https:\/\/atlas-scc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/atlas-scc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/atlas-scc.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/atlas-scc.com\/en\/wp-json\/wp\/v2\/comments?post=1398"}],"version-history":[{"count":2,"href":"https:\/\/atlas-scc.com\/en\/wp-json\/wp\/v2\/posts\/1398\/revisions"}],"predecessor-version":[{"id":1405,"href":"https:\/\/atlas-scc.com\/en\/wp-json\/wp\/v2\/posts\/1398\/revisions\/1405"}],"wp:attachment":[{"href":"https:\/\/atlas-scc.com\/en\/wp-json\/wp\/v2\/media?parent=1398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/atlas-scc.com\/en\/wp-json\/wp\/v2\/categories?post=1398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/atlas-scc.com\/en\/wp-json\/wp\/v2\/tags?post=1398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}