2.9 Green Economy and Climate Change

Without prejudice to its primary objective of price stability, the CBRT contributes to national environmental goals in the fields of green and sustainable finance, in coordination with relevant public authorities. Among the CBRT’s related endeavors in 2025 are taxonomy, carbon pricing, and green finance strategy, all of which directly support the green transition and sustainable development.

As part of its international engagement, the CBRT has contributed to reports prepared by the Network for Greening the Financial System (NGFS), of which it has been a member since 2021. In terms of technical cooperation, the CBRT has also engaged in mutual exchange of experience and knowledge with the central banks of Italy, Hungary, Georgia, Ukraine, and Tajikistan. The CBRT representative chairing the Environmental, Social, and Governance (ESG) Committee of the World Bank’s International Committee on Credit Reporting (ICCR)—of which the CBRT is a member—presented a global draft guidance document on the contribution of the ESG to credit reporting at the ICCR Spring Meetings held in June 2025.

To support sustainable finance, the CBRT has exempted from the loan growth limitation Turkish lira-denominated SME loans obtained from international development finance institutions and disbursed under sustainability frameworks. The CBRT published a research note in economics, titled “Examining the Carbon Border Adjustment Mechanism from a Firm Level Perspective (in Turkish)” on its website, and a CBRT paper titled “How Do Oil Supply and Carbon Policy Affect Firms’ Expectations and Decisions?” featured in the CBRT’s Central Bank Review journal.

Five seminars were organized covering topics such as the pricing of green bonds, the impact of the European Union Carbon Border Adjustment Mechanism (CBAM) on Türkiye, sustainable finance data, Climate Law No. 7552, taxonomy, and sustainability reporting. In addition, work continued on the preparation of green bulletins summarizing recent developments and featuring various analyses, with the aim of strengthening internal capacity and raising awareness.

Last but not least, in connection with Türkiye’s assumption of the presidency of COP31, which it will host in 2026, the CBRT has been engaged in providing the necessary technical support and contributions in areas falling within the CBRT’s mandate.