The Turkish Ministry of Treasury and Finance has published the National Green Finance Strategy and Action Plan (2026-2029), setting out Turkey’s roadmap for developing a transparent, inclusive and innovative green finance ecosystem that supports the country’s 2053 Net Zero Emissions Target and sustainable development objectives.
The strategy aims to improve access to international climate finance, mobilize both domestic and international capital for sustainable economic activities, strengthen financial markets against climate-related risks and create a financial system capable of supporting the country’s green transition. It is also structured around three strategic objectives, 11 targets and 45 actions, which will be implemented in cooperation with public institutions, regulators and market participants.
Strategy seeks to strengthen sustainable finance ecosystem
The ministry stated that climate change has become an economic, financial and social challenge in addition to an environmental one. Turkey, located in the Mediterranean Basin, is identified as particularly vulnerable to rising temperatures, droughts, floods, wildfires and other climate-related risks. At the same time, the transition to a low-carbon economy is presented as an opportunity to promote innovation, strengthen competitiveness and develop new financial products.
Citing the World Bank’s 2023 Country Climate and Development Report, the ministry estimates that Turkey will require approximately $68 billion in additional investment between 2022 and 2030 to achieve its resilient net-zero pathway, with roughly half of this investment expected to come from the private sector. As a result, strengthening the sustainable finance ecosystem is described as essential for mobilizing private capital, improving climate risk pricing and increasing the resilience of the financial system.
According to the ministry, the strategy is built upon a series of national policy documents adopted between 2021 and 2025, including the Green Deal Action Plan, the Climate Council Final Declaration, the Twelfth Development Plan (2024-2028), the Medium-Term Programs, the Ministry of Treasury and Finance Strategic Plan and the Climate Law, which entered into force in July 2025. Together, these documents call for the development of sustainable finance, a national green taxonomy, sustainable banking regulations, carbon pricing mechanisms, climate risk management, sustainability reporting standards, green financial products and stronger institutional capacity.
Financial sector assigned a central role in net-zero transition
The ministry stated that the Turkish financial sector will play a central role in achieving the 2053 net-zero target by directing capital toward sustainable investments, integrating climate and environmental risks into financial decision-making and supporting the country’s adaptation to global sustainability standards.
It noted that financial institutions are increasingly expected to incorporate environmental, social and governance (ESG) factors into lending, investment and risk management while improving climate-related disclosures and reporting practices. The document also emphasizes the importance of aligning Turkey’s financial framework with international sustainable finance standards to facilitate access to global capital markets.
Three strategic pillars form the basis of the strategy
To achieve its objectives, the strategy is organized around three strategic pillars. The first focuses on establishing the institutional and regulatory infrastructure necessary for a transparent and measurable green finance ecosystem. Planned actions include developing the Turkey Green Taxonomy, strengthening sustainability reporting standards, improving climate-related data collection and disclosure, integrating climate risks into financial supervision, enhancing monitoring systems and establishing common standards that improve transparency and comparability across financial markets.
The second strategic pillar aims to strengthen institutional capacity and human resources. The document calls for expanding technical expertise within public institutions, financial regulators and private financial institutions through training programs, research, knowledge sharing and closer cooperation between government agencies, academia and the financial sector. It also emphasizes raising awareness among businesses, investors and financial market participants regarding sustainable finance principles and climate-related financial risks.
The third pillar seeks to establish market mechanisms that support the growth of green finance. The strategy promotes the development and wider use of green loans, green bonds, sustainability-linked bonds, sukuk, social impact bonds and other sustainable financial instruments. It also supports expanding green banking practices, strengthening sustainable capital markets, encouraging institutional investor participation, improving insurance products related to climate risks and promoting innovative financing mechanisms capable of attracting both domestic and international investment into green projects.
The Ministry of Treasury and Finance will work together with financial regulators, supervisory authorities, the Central Bank, the Capital Markets Board, the Banking Regulation and Supervision Agency, relevant ministries and private-sector stakeholders to implement the strategy according to a defined timetable.