Green finance has become one the most important issues and sub-sectors in all leading economies with a huge increase in both social and institutional awareness surrounding the emergence of ESG and sustainability. The green finance sector , which is expected to be worth approximately $2.4 trillion by 2023, is regarded as one of the most effective tools to help drive environmental protection while serving the demands of the global economy.
Established as the leading economic hub, Türkiye has also pioneered several green finance breakthroughs. One of the three key priorities included in the most recently announced Turkish Economic Reform Package directly supports green transformation in industry. Türkiye has already completed the necessary preparations to diversify funding opportunities for environmentally-friendly investments, and create the sufficient infrastructure for the green bond market as demanded by international markets.
Following the green bonds issued by the Industrial Development Bank of Türkiye (TSKB) for the first time in 2016, the green bond market has continued to diversify. The first bond issuance of 2021 for example was carried out by TSKB with a focus on sustainability.
By promoting sustainable projects involving credits, loans and investment instruments that minimise carbon emissions, green finance plays a significant role in fulfilling one of the primary Sustainable Development Goals of United Nations where Türkiye is a founding member.
In line with Türkiye's economic objectives and the changing global climate, IFC is best placed as a leading supporter of green finance, this being a critical issue on the agenda of many sustainable development-oriented national and international finance authorities