Turkey Wealth Fund Unveils Sustainable Finance Framework

Turkey Wealth Fund (TVF) has issued its Sustainable Finance Framework, setting the foundation for green, blue, social, and sustainable finance transactions, marking a decisive step toward integrating green transformation into the country’s financial ecosystem.

A New Era of Environmental Transformation

■The framework, under TVF, supports a 30% green financing target by 2030.

■It officially defines categories such as green bonds, social bonds, and blue finance.

■Projects compliant with the framework could add 5% incremental value to the credit and equity markets.

Green Targets for Investors

■The framework prioritises projects meeting ESG criteria for investors.

■TVF provides transparency through sustainability reports.

■New regulations ease entry for both domestic and international investors into Turkey.

Framework Details and Implementation Plan

■Scope: Energy, water, waste management, sustainable agriculture, and urban renewal.

■Mechanisms: Carbon credits, green bonds, social bonds, and blue bonds.

■Timeline: Pilot projects from 2024, full-scale implementation in 2025.

Legal Foundations of Sustainable Finance

■The framework aligns with the Turkish Commercial Code and Public Finance Management regulations.

■TVF collaborates with the Public Finance Board to accelerate regulatory processes.

■New reporting standards bridge environmental standards between Turkey and the EU.

TVF’s framework sends a clear signal for both local and global investors in the green and social finance arena. Aligned with long‑term sustainability goals, it will steer Turkey’s financial markets toward ESG‑focused growth, enhancing market liquidity and fostering a low‑risk profile.