Turkish opposition party plans emissions trading scheme

Turkey's Iyi Party has promised a local emissions trading scheme and an increase in the share of renewables in the power generation mix in its manifesto for elections on 24 June.

The party plans to introduce a local emissions trading scheme as part of its pledge to adapt policies with the EU acquis, the manifesto said.

Membership of the EU is not essential for participation in the EU emissions trading scheme (ETS). Non-EU member states Norway, Iceland and Liechtenstein are active in the scheme — but they are members of the European single market, while Turkey is not.

Turkey pledged to cut its carbon emissions by 21pc by 2030 as part of the Paris climate change agreement, but the country's parliament is yet to ratify it.

The Iyi Party has also pledged to increase the share of renewables other than hydro in the power generation mix to 18pc in five years, from 10pc in 2017. Renewables supplied 12pc of total generation over January-April as a result of higher solar capacity, while hydropower accounted for 22pc of total output in the same period.

"We will gradually lower the use of gas in power generation and industry," the Iyi Party said.

The manifesto also includes pledges to limit state intervention in the power and gas market, along with ways to ensure supply security. The promise comes as state-controlled generators have intervened more often this year to keep day-ahead power prices within a range.

The party also plans to build new LNG terminals in order to diversify the country's natural gas supply. "We will review current gas supply agreements to ensure our energy strategy," the manifesto said.

The Iyi Party was founded in October last year and then formed an alliance with the main opposition CHP party to remove the risk of being below the 10pc threshold to gain places in parliament. Polls predict a close race between the ruling Cumhur alliance and the opposition Millet alliance. Turkey will switch to the executive presidential system with the upcoming elections, with voters electing the president and members of parliament.