Green finance is a developing field for financing environmentally friendly projects.
Types of Green Financing
- Green bond
- Sustainability linked loan (SLL)
- Green loan
- Renewable energy investment fund
- ESG funds
Green Bonds
- Bonds issued for environmentally friendly projects
- CMB regulation
- Independent verification (ICMA standards)
- Tax advantages
- Low interest rates
Green Loans
- Banks low interest on renewable energy projects
- EBRD, EIB, World Bank funds
- Sustainability criteria
- Annual reporting
Government Incentives
- YEKDEM (renewable energy price guarantee)
- Investment Incentive Certificate (tax and customs exemption)
- Employment incentives
- KOSGEB supports
ESG (Environment, Social, Governance)
- Investors evaluate company ESG performance
- High ESG = low financing cost
- Borsa Istanbul ESG index
- Sustainability report mandatory (large companies)
Carbon Credit Market
- Emission reduction certificates
- Intercompany trade
- Development in Türkiye at the stage
- International carbon markets (EU ETS)
Credit Denial (Environmental Risk)
- Banks avoid lending to fossil fuel projects
- Insurance companies risk assessment
- Investor pressure
Practical Recommendations (Company)
- Green financing for your environmental projects Select
- Establish an ESG reporting system
- Inquire about green loans from banks
- Benefit from government incentives
Environmental and financial law lawyer recommended.