Pursuing Sustainable Development Goals

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DOI :10.26650/B/SS10.2024.013.021   IUP :10.26650/B/SS10.2024.013.021    Full Text (PDF)

The Role of Green Bonds in Achieving SDG 13: the Case of Türki̇ye

Güzhan Gülay, Korkmaz Ergun

Within the target of transforming the world into a better place, the Sustainable Development Goals (SDGs) also aim to reduce greenhouse gas emissions and adapt to the negative effects of climate change with the 13th Goal. One of the financial tools used to finance such initiatives is the use of green bonds, which is a debt instrument that raises funds for green projects. These instruments are accepted as new in financial circles. In contrast to green credits that get involved in direct financing, the revenues from these bonds are usually used to fund low-carbon projects as well as ecologically beneficial projects. Institutions such as municipalities, companies, government agencies, and supranational organizations usually prefer to issue green bonds instead of normal bonds as this is accepted as the signaling device of commitment to the environment by various stakeholders like managers, shareholders, clients, and society. After ratifying the Paris Climate Agreement in 2021, Türkiye has started to prepare a long-term climate action plan, including regulations for green bonds. In this plan, the Capital Markets Board issued the Green Debt Instruments and Green Lease Certificate Guide in 2022. This study explores the standards and features of green bonds, delving into their origin and presenting relevant statistics. Additionally, it investigates global and Turkish green financing arrangements, including alternative investment instruments such as green sukuk.


Keywords: Green bonds, green financing, sustainability

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