Turkey's carbon market regulator has launched a pilot for its 2026 emissions trading system (ETS), as the Middle East's major industrial player moves to align with EU carbon border rules. The pilot's coverage, allowance allocation and price discovery mechanism are key market focuses, with the system expected to serve as a carbon pricing benchmark for the Middle East and Eastern Mediterranean region. Turkey, a significant exporter of steel, cement and electricity to the EU, has pushed ahead with carbon pricing to ensure domestic carbon costs are recognised under the EU's Carbon Border Adjustment Mechanism (CBAM).