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National Green Finance Strategy and Action Plan Has Been Published!

  • Jul 24
  • 2 min read

Pursuant to Presidential Circular No. 2026/8 (the “Circular”) the National Green Finance Strategy and Action Plan (2026-2029) (the “Action Plan”), drafted under the coordination of the Ministry of Treasury and Finance, has been published.

Within the scope of the Action Plan, various public institutions were tasked with issuing regulations on matters concerning their respective fields.

Below, we will outline certain key duties assigned to certain governmental authorities, including in particular, the Ministry of Environment, Urbanization and Climate Change (“Ministry”), the Capital Markets Board (“CMB”) and the Banking Regulation and Supervision Agency (“BRSA”).

Ministry:

  • Publication of the Türkiye Green Taxonomy Regulation,

  • Publication of secondary legislation regarding the Türkiye Emissions Trading System and

  • Establishment of the necessary technical and legal infrastructure to provide banks and financial institutions with access to emission data for use in their pricing processes.

CMB:

  • Publication of a compliance assessment report, by reviewing the practices of portfolio management companies under the Guide on Principles of Responsible Governance,

  • Contribution to the efforts for the authorization of audit firms to carry out assurance engagements for entities within the scope of Türkiye Sustainability Reporting Standards (“TSRS”) and for increasing the number of licensed audit firms,

  • Promotion, together with the Türkiye Capital Markets Association (“TCMA”), of the wider adoption of sustainability-themed capital market instruments and

  • Publication of the Guide on Green, Sustainable and Social Capital Market Instruments and the Guide on Sustainability-Linked Capital Market Instruments.

BRSA:

  • Publication of the guidelines for banks on the calculation of credit portfolio emissions and their consideration in risk management processes and

  • Establishment of a stress testing infrastructure linked to climate and environmental risks in the Turkish banking sector.

Other matters in which the above-mentioned institutions have joint responsibilities:

  • Publication of guidelines containing sector-specific definitions of green products and methods for avoiding greenwashing within the financial system,

  • Identification and monitoring of the share of green financial products and instruments within the financial markets and

  • Contributing, as a relevant authority, to the feasibility study on the systematic issuance of catastrophe (CAT) bonds for climate-related risks, under the responsibility of Insurance and Private Pension Regulation and Supervision Authority (“IPRSA”).

Conclusion

National and international financing is needed to achieve the objectives and targets set out in policy and strategy documents concerning Türkiye’s climate change and sustainable development targets, most notably the 2053 Net Zero Emission Target.

The Action Plan, in turn, will support the implementation of other policy documents by equipping the financial system with the necessary green finance infrastructure to procure the required financing. We believe that the publication of the Action Plan by the Ministry will accelerate developments within the green finance ecosystem.

In this respect, we will continue to closely monitor the regulations and guidelines to be published, particularly the Türkiye Green Taxonomy Regulation, and will continue to keep you informed of significant developments.

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