'Green Financing' Expectations High in Exports

Within the framework of the Sustainability Action Plan, the Turkish Exporters Assembly (TİM) has accelerated its efforts to assess the current status in the "Green Transition" process, develop cooperation with all stakeholders in the ecosystem, and ensure that exporters benefit maximally from green financing opportunities. TİM Chairman İsmail Gülle emphasized that the export community has high expectations from both the government and the financial sector in accessing 'green financing'. In this context, he held the 'Access to Finance for Green Transition Meeting' online. Within the framework of TİM's Sustainability Action Plan, the meeting addressed important issues aimed at assessing the current status in the green transition process, developing cooperation with all ecosystem stakeholders, and ensuring that exporters benefit maximally from green financing opportunities. Members of relevant ministries and public institutions, representatives of international financial institutions' Turkey offices, banks, members of TİM's Sustainability in Industry Scientific Committee and Climate Committee, relevant sector representatives, and academics attended the meeting. Participants included OECD Permanent Representative to Turkey Prof. Dr. Kerem Alkin, TUBITAK President Prof. Dr. Hasan Mandal, Ministry of Foreign Affairs EU Directorate Financial Cooperation and Project Implementation Director General Bülent Özcan, Ministry of Environment, Urbanization and Climate Change Climate Change Head Orhan Solak, European Bank for Reconstruction and Development-EBRD Turkey Country Manager Deputy Şule Kılıç, Banking Regulation and Supervision Agency-BDDK Deputy Governor Yakup Asarkaya, Turkey Development and Investment Bank General Director İbrahim Halil Öztop, Borsa Istanbul Deputy General Director Güzhan Gülay, Turkish Eximbank General Director Ali Güney, KOSGEB Technology, Innovation and Localization Department Head Dr. Mehmet Görkem Gürbüz along with senior representatives of public and private banks. Additionally, senior representatives from the World Bank, United Nations Global Compact, United Nations Sustainable Development Solutions Network (UN-SDSN) and the Turkey Office of the Business and Sustainable Development Association, as well as representatives from TİM's 27 different sectors participated in the meeting. In his opening remarks, TİM Chairman Gülle noted that green transition and sustainability are no longer an option but rather an absolute necessity today. Gülle stated, "In a manner of speaking, we have entered a period where everyone must sweep in front of their own door, and those who do not will face various sanctions. This period simultaneously presents various opportunities and risks for our country. The subject has an extremely broad sphere of influence. Because transition to a sustainable economy is only possible through comprehensive work and cooperation. For this reason, today, from our ministries and public institutions to the Turkey representations of international financial organizations, from our banks to the TİM Climate Committee and TİM Sustainability Science Committee, to our sector representatives and respected academics, we have representatives from a wide range of areas with us. We will address this important issue in all its details," he said.

Exporters have high expectations

Noting that exporters have high expectations regarding green financing, Gülle stated, "We have 3 fundamental objectives in organizing this meeting; within the framework of the TİM Sustainability Action Plan; to assess our current status in the green transition process, to develop our cooperation with all stakeholders in the ecosystem, and to ensure that our exporters benefit maximally from green financing opportunities. Our exporters' expectations from both the government and the financial sector in this process are quite high," he said.

41 percent of our exports go to the EU

Gülle emphasized that the objective of the European Green Deal is to reduce net greenhouse gas emissions to zero by 2050. "Additionally, our country, as a party to the Paris Climate Agreement, has a net zero emission target by 2053. In line with these objectives, the European Green Deal is designed as a growth strategy where economic growth is decoupled from resource use. This process, which operates in reverse to existing doctrines until today, holds critical importance for our country's exports as well. Because the European Union is a market where we realized 93 billion dollars of our exports in 2021, that is, 41.3 percent of our total exports. In addition to the Emissions Trading System, a carbon border adjustment mechanism will be implemented, under which products will be taxed in proportion to their carbon content. The carbon border adjustment mechanism, which will begin to be implemented in 2026, will not burden our exporters in 2023-2025," he said. Noting that this period is planned as a transition period for exporters, Gülle said, "We need to make good use of this period when exporters will declare their emission amounts" and continued: "As the Turkish Exporters Assembly, we have rapidly started work to make use of this period. We shared our Sustainability Action Plan with the public. The "green financing" heading included in the Green Deal Action Plan published by our Ministry of Trade is one of the important items on our action plan's agenda. In this context, through digital mentoring and training programs focused on the green deal and climate change, we aim to add value to our exporters primarily through reports and training on the green financing heading," he said. Turkish Exporters Assembly Chairman İsmail Gülle emphasized the importance of the necessity to create incentive areas for both companies to work in compliance with international standards and to promote digital product passport and traceability applications. Gülle stated, "In this regard, the views and evaluations of our banks and their contributions to the process are of considerable importance. Representatives of 8 Banks that have signed the Sustainable Finance Declaration of the United Nations Global Compact, which our Assembly has also signed, are with us today. Our greatest expectation is that our financial sector, which has always been by the side of the export family, will also be by the side of our exporters in the green transition process. Because this transformation cannot be realized without providing sufficient financing sources. We are seeing diversification in financing channels and non-credit financing tools such as green bonds and sukuk applications in energy companies and the real sector in recent times," he said.

EUR 3.2 Billion in Resources Allocated

Noting that the European Union has allocated a large financing source to the process, Gülle drew attention to the importance of the EUR 3.2 billion that Turkey received: "Over the next 10 years, it is planned to provide EUR 1 trillion in sustainable investment support to the real sector in this field. Our country, which is in the position of an EU candidate, must benefit maximally from these resources. As a result of the effective negotiations conducted by our government, we received the news this week that a source of EUR 3.2 billion was secured for our country. I believe that as these figures increase, the transformation process of all our sectors will accelerate," he said. TİM shared its 'TİM Sustainability Action Plan' with the public on 21 June 2021 with the message 'We Produce for the World Without Consuming It', to guide exporters in line with Climate Change, Sustainability and European Green Deal objectives.   Source