Sustainability and Green Finance: Banking System in Turkey

Year 2024, Volume: 10 Issue: 2, 295 - 313, 31.07.2024

Adem Özbek

https://doi.org/10.31592/aeusbed.1426965

Abstract

Today, one of the main factors that increases the importance of sustainability and green finance is the scarcity of resources that meet needs. Sustainability has important benefits in reducing environmental erosion, such as acting as a carrier for the transportation of existing resources to future generations. Green finance is the use of financial resources in projects that embrace climate change aspects in the creation of a sustainable environment. At this point, banks, which are at the center of the financial system, are at a key point in terms of both maintaining sustainability and directing economic resources to the right areas. In the study, existing sustainability and green finance legislation studies in Turkey were followed. In addition, an attempt has been made to compile the studies carried out by banks operating in Turkey on sustainability and green finance. As a result of the study, it was seen that significant regulations were not made in credit policies in the banking system in Turkey, especially in terms of reducing environmental pollution. At the same time, it is seen that public banks include more sustainability and green financing in their policies than private and foreign capital banks.

Keywords

Sustainability, Green Finance, Türkiye, Bank

Sürdürülebilirlik ve Yeşil Finans: Türkiye’de ankacılık Sistemi

Abstract

Günümüzde sürdürülebilirliğin ve yeşil finansın önemini artıran temel faktörlerin başında ihtiyaçları karşılayan kaynakların kıtlığı gelmektedir. Sürdürülebilirliğin, mevcut olan kaynakların gelecek nesillere ulaşımında taşıyıcılık görevi görmesi gibi çevresel erozyonun azaltılmasında da önemli faydaları mevcuttur. Yeşil finans, sürdürülebilir bir çevrenin oluşumunda finansal kaynakların iklim değişikliği yönlerini benimseyen projelerde kullanımıdır. Bu noktada finansal systemin merkezinde yer alan bankalar, hem sürdürülebilirliğin devamı hem de ekonomik kaynakların doğru alanlara yönlendirilmesi açısından kilit noktadadır. Çalışmada Türkiye’de mevcut sürdürülebilirlik ve yeşil finans mevzuat çalışmaları izlenmiştir. Bununla birlikte Türkiye’de faaliyette bulunan bankaların sürdürülebilirlik ve yeşil finans konusunda yapmış oldukları çalışmalar derlenmeye çalışılmıştır. Çalışma sonucunda Türkiye’debankacılık sisteminde özellikle çevresel kirliliğin azalktılması noktasında kredi politikalarında önemli düzenlemelerin yapılmadığı görülmüştür. Aynı zamanda kamu sermayeli bankalar, özel ve yabancı sermayeli bankalara göre daha fazla sürdürülebilirliğe ve yeşil finansmana politikalarında yer verdikleri görülmektedir.

Keywords

Sürdürülebilirlik, Yeşil Finans, Türkiye, Banka

References

• Al-Sheryani, K., and Nobanee, H. (2020). Green finance: A mini-review. Available at SSRN 3538696.
• Anadolu Agency (2023). Good news of 450 million dollars financing with turkey green industry project. Retrieved from https://www.aa.com.tr/tr/ekonomi/bakan-kacirdan-450-milyon-dolarlik-finansman-mujdesi/2920294 in 25.11.2023.
• Bai, Y., Faure, M. and Liu, J. (2013). The role of china’s banking sector in providing green finance. Duke Environmental Law and Policy Forum, 24, 89–140.
• Batten, S., Sowerbutts, R. and Tanaka, M. (2016). Let’s talk about the weather: the impact of climate change on central banks. Bank of England Working Paper No, 63.
• Banking Regulation and Supervision Agency (2023). Mevzuat_1195. Retrieved from https://www.bddk.org.tr/Mevzuat in 23.11.2023.
• Berensmann, K. and Lindenberg, N. (2019). Green finance: Across the universe. In Corporate Social Responsibility, Ethics and Sustainable Prosperity, 305-332.
• United Nations Türkiye (2023). Türkiye sustainable development goals studies. Retrieved from https://turkiye.un.org/tr/sdgs in 27.11.2023.
• Bloomberg (2022). BI Expects ESG etfs to reach $1 trillion and esg debt $11 trillion by 2025. Retrieved from https://www.bloomberg.com/company/press/esg-assets-rising-to-50trillion-will-reshape-140-5-trillion-of-global-aum-by-2025-finds-bloomberg-intelligence in 17.01.2022.
• Campiglio, E. and Dafermos, Y., M. (2018). Climate change challenges for central banks and financial regulators. Nature Clim Change, 8, 462–468.
• Chhaochharia, M. (2021). Green finance in India: Progress and challenges. Research Journal of Humanities and Social Sciences, 12(4), 223-226.
• Chopra, T. and Kakrecha, P. (2015). Green finance: The practices of banks and perspective of customers. International Journal of Research–Granthaalayah, 3(5).
• Dikau, S. and Volz, U. (2019). Central banking, climate change and green finance. Sachs, J., Woo, W.T., Yoshino, N., Taghizadeh-Hesary, F. (Ed.), Springer Handbook of Green Finance: Energy Security and Sustainable Development, 81–102. Springer, New York.
• Dikau, S. and Volz, U. (2021). Central bank mandates, sustainability objectives and the promotion of green finance. Ecological Economics, 184, 107022.
• Dindar, A. (2023). Turkey's 2023 sustainable development report card. Retrieved from https://www.btsoekonomi.com/haber-detay/turkiye-39-nin-2023-yili-surdurulelektrik-kalkinma-karnesi in 29.11.2023.
• Dyllick, T. and Hockerts, K. (2002). Beyond the business case for corporate sustainability. Business Strategy and the Environment, 11(2), 130–141.
• Ecer, K., Güner, O. ve Çetin, M. (2021). European green deal and adaptation policies of the Turkish economy. Journal of Business and Economic Studies, 9(2), 125-144.
• European Commission (2021). What is the European green deal. European Commission. Retrieved fromhttps://ec.europa.eu/commission/presscorner/api/files/attachment/859152/What_is_the_Europea n_Green_Deal_en.pdf.pdf in 20.07.2020.
• Falcone, P. M. (2020). Environmental regulation and green investments: The role of green finance. International Journal of Green Economics, 14(2), 159-173.
• Garanti BBVA (2023). Sustainable banking in Türkiye and the World. Retrieved from https://www.garantibbva.com.tr/blog/surdurulelektrik-bankacilik in 12.04.2023.
• Gökçe, Ş., Aytekin, O., Kuşan, H. ve Zorluer, İ. (2018). Sustainable construction in terms of legislation and standards in Turkey. Uludağ University Faculty of Engineering Journal, 23(3), 289-312.
• International Renewable Energy Agency (2022). World energy transitions outlook 2022: 1,5c pathway. Retrieved from https://www.irena.org/Publications/2022/Mar/World-Energy-Transitions-Outlook-2022 in 23.11.2023.
• Iswaryalakshmi, P. (2022). A study on progress and challenges of green finance in madurai district. Journal of Pharmaceutical Negative Results, 1048-1054.
• Jin, D. and Mengqi., N. (2011). the paradox of green credit in China. Energy Procedia, 5, 1979–86.
• Kedir, F. and Hall, D. (2021). Resource efficiency in industrialized housing construction – a systematic review of current performance and future opportunities. J. Clean. Prod., 286, 125443.
• Louche, C., Busch, T., Crifo, P. and Marcus, A. (2019). Financial markets and the transition to a low-carbon economy: challenging the dominant logics, organ. Environ, 32, 3–17.
• McDaniels, J. and Robins, N. (2018). Greening the Rules of the Game. How Sustainability Factors Are Being Incorporated into Financial Policy and Regulation. UNEP Inquiry into the Design of a Sustainable Financial System. Inquiry Working Paper.
• Noh H.J. (2010). Financial strategy to accelerate innovation for green growth. Korea Capital Market Institute.
• Ozili, P.K. (2021). Digital finance, green finance and social finance: is there a link?. Financial Internet Quarterly, 17(1), 1-7.
• Presidency of the Court of Accounts, (2023). Sustainable Development Goals.
• Republic of Turkey Court of Accounts Presidency (2023). Sustainable development goals. Retrieved from https://www.sayistay.gov.tr/pages/127-surdurulebilir-kalkinma-amaclari in 18.10.2023
• Republic of Turkey Ministry of Trade (2023). T.R. ministry of commerce, the giant market next to Us European Union. Retrieved from https://ticaret.gov.tr/dis-iliskiler/avrupa-birligi/yani-basimizdaki-devpazar-avrupa-birligi in 22.11.2023.
• Republic of Turkey Ministry of Trade, Green Deal Working Group (2023) Annual activity report. Retrieved from chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://ticaret.gov.tr/data/643ffd6a13b8767b208ca8e4/YMEP%202022%20Faaliyet%20Raporu.pdf in 24.11.2023.
• Presidency of the Republic of Turkey (2023). Presidency of strategy and budget, sustainable management of environment and natural resources. Retrieved from chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.sbb.gov.tr/wpcontent/uploads/2020/04/Cevre_ve_DogalKaynaklarinSurdurulelektrikYonetimiCalismaGrubuRaporu.pdf in 27.11.2023.
• Science Culture and Education Foundation (2023). A Road map for green economy transformation in Turkey. Retrieved from https://ilke.org.tr/turkiyede-yesil-ekonomi-donusum-icin-bir-yol-haritasi in 24.11.2023.
• Soundarrajan, P., and Vivek, N. (2016). Green finance for sustainable green economic growth in India. Agricultural Economics, 62(1), 35-44.
• Stoltenberg, U. (2010). Culture as a dimension of the concept of education for sustainable development. In: O. Parodi, G. Banse and A. Schaffer (Ed.), Interactions: culture and sustainability. print sigma, Berlin, 293–311.
• Sustainable Development (2022). Report of the World Commission on Environment and Development: Our Common Future. Retrieved from https://sustainabledevelopment.un.org/content/documents/5987our-common-future.pdf in 14.11.2022.
• Şakar, A.Y. (2019, 24-20 April). Tax incentives provided for green bonds in financing energy efficiency and their importance for Turkey. 34.International Public Finance Conference, Antalya, Retrieved from https://ipfctr.org/yenisite/wp-content/uploads/2023/02/34-IPFCtr_Proceedings-Book.pdf in 27.09.2022.
• Tuncer, B. B. (2022). An essay on the social transformative role of public relations and the climate crisis. Ahi Evran University Social Sciences Institute Journal, 8(3), 836-851.
• Turkish Banks Association (20213). Turkish banks association sustainability report, Retrieved from extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.tbb.org.tr/Content/Upload/Dokuman/8954/Turkiye_Bankalar_Birligi_Surdurulilirlik_Raporu.pdf in 12.11.2023.
• Türkiye Sustainable Development Goals (2023). Retrieved from https://turkiye.un.org/tr/sdgs in 12.11.2023.
• UN Environment Programme. (2019). Measures taken for financial risks resulting from environment and climate change. Retrieved from https://www.unep.org/facts-about-climate-emergency?gad_source=1&gclid=CjwKCAjwzIK1BhAuEiwAHQmU3mSgSbT1HDSs8x-oolbsGmEqj1XBNh4XTt6TO7Kozsf3geZW7buFaBoCEAsQAvD_BwE in 25.11.2023.
• Urban, M. A. and D. Wójcik. (2019). Dirty banking: Probing the gap in sustainable finance. Sustainability, 11(6), 1745.
• Verdi (2023). Near term within the scope of green transformation goals. Retrieved from chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/http://verdi.av.tr/uploads/dosya/1286-2/ in 22.11.2023.
• The World Bank (2023). World Bank approves $450 million to foster a greener and more resilient industrial sector in Türkiye. Retrieved from https://www.worldbank.org/en/news/press-release/2023/06/02/world-bank-approves-450-million-to-foster-a-greener-and-more-resilient-industrial-sector-in-türkiye in 04.10.2023.
• Xu, J., She, S., Gao, P. and Sun, Y. (2023). Role of green finance in resource efficiency and green economic growth. Resources Policy, 81, 103349.
• Yesilbuyume (2023). Why is sustainable finance needed?. Retrieved from https://yesilbuyume.org/avrupa-yesil-mutabakati-ve-surdurulebilir-finans in 16/09/2023.
• Zhixia, C., Hossen, M.M., Muzafary, S.S. and Begum, M. (2018). Green banking for environmental sustainability-present status and future agenda: experience from bangladesh. Asian Econ. Financ. Rev., 8, 571–585.
• Ziolo, M., B. Z. Filipiak, I. Bak. and K. Cheba. (2012). How to design more sustainable financial systems: The roles of environmental, social, and governance factors in the decision-making process. Sustainability (Switzerland), 11(20), 5604.