Roadmap for the consideration of establishment and operation of a greenhouse gas emissions trading system in Turkey / prepared by Ecofys; Maarten Neelis [and eleven others].

CONTENTS
$x 1-Introduction 1 $x 2-Emissions Trading Design Elements -
An Introduction 3 $x 2.1 Why emissions trading? 3 $x 2.2 Decide on the
scope 6 $x 2.2.1 Definition 6 $x 2.2.2 Analysis of design options and
choices 6 $x 2.2.3 Selection of international examples 9 $x 2.2.4 Links to
other design elements and miscellaneous issues 12 $x 2.2.5 Design checklist
12 $x 2.3 Set the cap 13 $x 2.3.1 Definition ".. 13 $x 2.3.2 Analysis of
design options and choices 13 $x 2.3.3 Selection of international examples
16 $x 2.3.4 Links to other design elements and other key issues 19 $x 2.3.5
Design checklist 19 $x 2.4 Distribute the allowances 20 $x 2.4.1 Definition
20 $x 2.4.2 Analysis of design options and choices 20 $x 2.4.3 Selection of
international examples 25 $x 2.4.4 Links to other design elements and
miscellaneous issues 26 $x 2.4.5 Design checklist 26 $x 2.5 Consider the
use of offsets 27 $x 2.5.1 Definition 27 $x 2.5.2 Analysis of design
options and choices 28 $x 2.5.3 International examples 32 $x 2.5.4 Links to
other design elements and miscellaneous
issues............................................. 34 $x 2.5.5 Design
checklist
.........................................................................................................................................
35 $x 2.6 Decide on temporal
flexibility............................................................................................................
35 $x 2.6.1 Definition
........................................................................................................................................................
35 $x 2.6.2 Analysis of design options and
choices.......................................................................................
36 $x 2.6.3 Selection of international
examples...............................................................................................
36 $x 2.6.4 Links to other design elements and miscellaneous issues
............................................ 38 $x 2.6.5 Design
checklist..........................................................................................................................................
38 $x 2.7 Address price predictability and cost containment
............................................................ 39 $x 2.7.1
Definition
........................................................................................................................................................
39 $x 2.7.2 Analysis of design options and
choices.......................................................................................
39 $x 2.7.3 Selection of international
examples........................................................................................
42 $x 2.7.4 Links to other design elements and miscellaneous issues
............................................ 42 $x 2.7.5 Design checklist
.........................................................................................................................................
42 $x 2.8 Ensure oversight and
compliance...................................................................................................
43 $x 2.8.1 Definition
........................................................................................................................................................
43 $x 2.8.2 Analysis of design options and choices
......................................................................................
43 $x 2.8.3 Selection of international
examples..............................................................................................
53 $x 2.8.4 Links to other design elements and miscellaneous issues
............................................ 56 $x 2.8.5 Design
checklist.............................................„.....................................................................................
56 $x 2.9 Consider
linking..........................................................................................................................................
56 $x 2.9.1 Definition
........................................................................................................................................................
56 $x 2.9.2 Analysis of design options and
choices........................................................................................
56 $x 2.9.3 Selection of international
examples..............................................................................................
60 $x 2.9.4 Links to other design elements and miscellaneous
issues........................................... 61 $x 2.9.5 Design
checklist..........................................................................................................................................
61 $x 3 - Policy Mapping and Policy Interactions_62 $x 3.1 Theory on policy
interaction when introducing an ETS
................................................... 62 $x 1 Emissions
trading as part of a wider policy
mix.................................................................... 63
$x 3.2 Mapping of Turkish existing and planned energy and $x climate change
policies
.........................................................................................................................
67 $x 3.2.1 International policies
,..............................................................................................................................
67 $x National Policies - laws and
regulations......................................................................................
69 $x 3.2.3 National Policies - framework policies and
strategies....................................................... 72 $x 3.3
Phasing in an ETS - recommendation on the interaction $x with other
policies....................................................................................................................................
80 $x 3.3.1 Energy efficiency policies
....................................................................................................................
80 $x 3.3.2 Renewable energy and other policies for the power sector
......................................... 82 $x 3.3.3 Voluntary emission
reduction offset market
...........................................................................
85 $x 3.4 Conclusions - a policy roadmap for Turkey by minimizing possible
$x conflicts and maximizing possible
synergies........................................................................
86 $x 4 - Legal and Institutional Basis for an ETS in Turkey _87 $x 4.1
Ltgal and Institutional structure of existing ETSs 87 $x 4.1.1 EU ETS
legislative structure 87 $x 4.1.2 Implementation of the EU ETS In Germany
and Poland.................................................. 90 $x 4.1.3
Legal end Institutional structure Of the Korean and Californian ETS
................................ 95 $x 4.1.4 Legal and Institutional
set-up: learnings for Turkey from $x International case
studies....................................................................................................................
96 $x 4.2 Legislative and institutional basis for developing an ETS in
Turkey......................... 97 $x 4.2.1 Existing legislation in Turkey
with relevance to a possible ETS................................... 97 $x .
. mt institutional structures in Turkey for the set-up of an
ETS................................. 98 $x 4.3 Gap analysis
................................................................................................................................................
99 $x 4.4 Conclusion - recommendation for a legal and institutional set-up
$x of an ETS in Turkey
..................................................................................................................................
102 $x 5 - Options, Guidance and Action Plan for an Emissions $x Trading
Pilot in Turkey_103 $x 5.1 Design
options.............................................................................................................................................103
$x 5.1.1 Decide on the scope, starting year and length of a pilot
ETS......................................103 $x 5.1.2 Set the
cap....................................................................................................................................................105
$x 5.1.3 Distribute the
allowances....................................................................................................................108
$x 5.1.4 Consider the use of
offset....................................................................................................................109
$x 5.1.5 Decide on temporal
flexibility............................................................................................................111
$x 5.1.6 Address price predictability and cost
containment............................................................113
$x 5.1.7 Ensure oversight and
compliance...................................................................................................114
$x 5.1.8 Consider
linking..........................................................................................................................................118
$x 5.2 Criteria for the evaluation of design
options...........................................................................119
$x 5.3 Evaluation of design
options...............................................................................................................120
$x 5.3.1 Decide on the
scope.................................................................................................................................120
$x 5.3.2 Set the cap 120 $x 5.3.3 Distribute the allowances 121 $x 5.3.4
Consider the use of offset 121 $x 5.3.5 Decide on temporal flexibility 122
$x 5.3.6 Address price predictability and cost containment 122 $x 5.3.7
Ensure oversight and compliance 122 $x 5.3.8 Conclusion: possible design
for an ETS pilot in Turkey 124 $x 5.4 Action plan for the set-up of a pilot
ETS in Turkey 125 $x 6- Conclusion 135