It has been a while since we published our article titled " Green Bonds or Greenwash?", published on Mondaq on May 6, 2015. By the time, importance and the popularity of green bonds are growing stronger. Therefore we thought the ones interested in the topic needed an update on the recent developments on green bonds in Turkey.

British non-governmental organization Climate Bonds Initiative ("CBI") who supports the growth of the green and climate bonds market, has an interest in Turkey after China, India and Brazil. Mr. Manual Adamini, the research and development director of CBI, visited Istanbul, Turkey to meet with some private sector leaders and bank representatives on green bonds[1]. The main purpose of the meeting was to explain the benefits of green bonds; their effect on the global economy and how companies can gain benefits from it. According to the HSBC's report[2], dated November, 2015, in 2014, USD 37 billion green bonds were issued in the market and the World Economic Forum estimate that future annual spending towards climate finance will be approximately USD 700 billion per annum. Although green bonds are not yet that popular in Turkey, bonds with the amount of TRY 3,8 billion had been exported last year and this number already indicates the great potential of Turkey. Mr. Adamini stated that they are in contact with Turkish government agencies such as Ministry of Finance, Banking Regulation and Supervision Agency, Capital Markets Board, Central Bank of Turkey, Banks Association of Turkey as well as NGOs such as S360[3] in order to cooperate with them by reforming the existing finance policies, for the promotion of the green bonds and increase the usage of green bonds in private sector. In Turkey, exporting green bonds are not so different than issuing the ordinary bonds, except for the green ones, it is a must that the income derived therefrom will be used in environmental friendly investments. Mr. Adamini further stated that they are also working on green Sukuk as an Islamic financing product and continuing their works on this field in Indonesia and Malaysia.

We are deeply interested in this subject and will continue to keep you updated on the same!

[3] A non-governmental organization which aims to contribute in the construction of a different future for Turkey and nearby geography and to create simple and effective solutions for today's complex problems in order to make sustainability possible for generations to come.

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