Turkey is taking 10 important steps in the field of green finance, which has reached a size of $7 trillion in global markets. The Ministry of Treasury and Finance will update the incentive system by identifying the needs for green transformation support. Legislation work will be completed on green sukuk, the use of which is rapidly increasing in the field of Islamic finance. The impact of the Istanbul Financial Center project on the supply and demand of green sukuk will be examined in detail. At the end of the year, the Green Bond and Green Sukuk Guide will be published, and the Bond Guarantee Fund will be activated.
Within the scope of the Green Reconciliation Action Plan published with the signature of President Recep Tayyip Erdogan, an ecosystem that will enable the development of green finance is established in Turkey. Here are 10 key steps to support the development of green finance, according to the Plan:
GREEN BOND ISSUES WILL BE SUPPORTED:
A “Sustainable Bond Framework Document” will be prepared by the Ministry of Treasury and Finance within the scope of a possible green or sustainable bond issuance in international capital markets.
INCENTIVE SYSTEM WILL BE UPDATED:
In order to support green transformation, the needs will be determined, and the national incentive system will be reviewed, taking into account the incentives provided in the EU. For the development of green finance, a legislative preparation will be carried out that aims to determine the sustainability of investments of global companies, taking into account the EU’s classification legislation.
GUIDES WILL BE SHARED IN DECEMBER:
A green bond and green sukuk guide will be prepared. Studies will be carried out in the field of Green Sukuk. A roadmap will be determined for the development of sustainable banking.
ACCESS TO GLOBAL FINANCE WILL BE EASIER:
Diplomatic and technical studies will be carried out in order to improve Turkey’s access to international financing for green transformation. Attempts will be made by the EU and member states to access EU financing opportunities for candidate countries.
SOURCE FOR CLEANING THE WASTE:
Financial supports for investments in the cleaning or disposal of solid, liquid or gaseous wastes of existing or future facilities will be increased.
ENVIRONMENTALLY LICENSED INVESTMENTS WILL BE PRIORITIZED:
Investments in energy efficiency, which provide a certain amount of energy savings with investments with environmental licenses, will be supported as priority investments.
NEW ERA IN THE BANKING SECTOR:
The “Turkish Banking Sector Sustainable Strategy” will be prepared, which includes a roadmap for the development and dissemination of sustainable finance practices in the Turkish banking sector.
FINANCE OPPORTUNITIES UNDER ONE ROOF:
Information on all international and national support opportunities in connection with the environment and climate change will be compiled. More effective use will be ensured by compiling information on current financing opportunities under a single roof, in a way that will be made available to all stakeholders.
PROMOTIONAL ACTIVITIES WILL BEGIN:
In line with the objectives of the European Green Agreement, information, promotion and incentive activities will be carried out in order to obtain maximum benefit from the existing financing opportunities. It will also be ensured that the relevant stakeholders are informed about the current financing opportunities, their capacities are increased and their applications are encouraged. International cooperation activities will be held to benefit from the financing.
BOND GUARANTEE FUND WILL BE ESTABLISHED:
Thanks to the guarantee to be provided by the Bonds Guarantee Fund, companies that issue bonds will be able to incur lower costs and the interest of the investor will increase. Companies that have not been able to access the capital markets before will be able to access the markets with this Fund.
YASED: WE SUPPORT THE STEPS TAKEN
Aysem Sargin, President of the Investors Association (YASED), stated that they welcome Turkey’s decision to make harmonization with the European Green Consensus a priority target and said, “We will contribute to this process with activities and activities supporting green transformation within the scope of our Sustainable Development Platform that we have created.
With the works we will carry out, we aim to create a strong interaction between the private sector, relevant non-governmental organizations and policymakers in line with the common interests, to contribute to the implementation of the regulations that will ensure the adaptation to the Green Deal in the healthiest way possible. and to support the best use of existing and potential financing and incentive opportunities.”
Source: Sabah / Translated by Irem Yildiz