The European Energy Exchange (EEX) and Turkish energy bourse Enerji Piyasaları Işletme A.Ş. (EPIAŞ) signed a memorandum of understanding (MoU) on Wednesday underlining their commitment to developing carbon emissions trading in Türkiye.

"We look forward to working with EPIAŞ in creating a robust emissions trading system (ETS) in Türkiye by providing our expertise in carbon markets," said EEX chief executive Peter Reitz in a press release issued in Germany.

"National ETSs are essential to creating a global carbon price, and hence, an important market-based tool to drive decarbonization," he added.

His counterpart at EPIAŞ, Taha Meli Arvas, said: "ETS is a crucial tool in allowing countries to achieve their climate change and 'green-transition' goals. As Türkiye’s energy exchange, EPIAŞ is establishing a carbon market and we are committed to developing and operating a well-functioning ETS that will collaborate with European energy markets."

The timing of concrete steps and financial details of the cooperation were not disclosed.

The EEX, a subsidiary of Deutsche Boerse offers tools and technology to build platforms for carbon emission permits trading worldwide, helping regions achieve green transition goals by aligning relevant trade schemes with financial markets.

Its carbon expertise spans most of the EU at member state and central levels, also reaching Britain, New Zealand, the Asia Pacific and North America. That complements a raft of electricity, gas, hydrogen, freight and agricultural products.

EPIAŞ is the energy exchange of Türkiye that operates power, natural gas and environmental markets by providing reliable and transparent market conditions. Moreover, as a central counterparty, EPIAŞ is responsible for financial settlement and invoicing services and also operates renewable energy guarantees of the origin registry system.