Capital Markets Board of Turkey publishes guidelines on green financing

The Capital Markets Board of Turkey published its “Guidelines on Green and Sustainable Debt Instruments and Lease Certificates” on 24 February 2022. The Guidelines, which take into consideration the climate crisis, the Covid-19 pandemic, the European Green Deal, the 11th Development Plan  and the 2021 Economy Reform Package of Turkey, and the Paris Climate Treaty, are based on the Green Bond Principles of International Capital Markets Association.

The Guidelines seek to regulate the fundamental principles to be followed during green project financing and set forth four main components for framework certificates, namely: (1) Use of Funds Received from the Issuance; (2) Project Assessment and Election Process; (3) Management of Funds Received from the Issuance; and (4) Reporting.

By increasing transparency, honesty, consistency and comparability for the financing of projects contributing to environmental sustainability, the Capital Markets Board aims to bring the execution of the issuance of green/sustainable debt instruments and lease certificates in line with international standards.

View the full Pekin | Bayar | Mizrahi Law Firm article, "Guidelines on green financing are published by the Capital Markets Board."