Coordinating Banking Regulations and Green Transition: The Turkish Experience

Abstract

Green transition poses non-negligible financial and coordination challenges. These challenges are more acute in major developing countries, where policy capacity deficiencies and limited financial resources are more pronounced. This chapter examines the existing policy coordination attempts and arrangements in Turkey. The country has announced a net-zero target and has published a national action plan. Besides, the country is engaging in developing banking regulations to stimulate and finance green transition. In light of these attempts and arrangements, the chapter discusses the current coordination arrangement and bank regulations. In so doing, the chapter sheds light on policy capacity deficiencies, political and economic challenges, and bureaucratic politics as the three major impediments against an effective coordination of green transition while ensuring to stimulate and finance green transition on the back of banking regulations.