Finance Sector and Climate Risks

President of the Turkish Banking Association Alpaslan Çakar stated that “The financial sector is highly exposed to climate risks due to providing financing to both sectors causing climate change and those affected by this change.” Alpaslan Çakar, Chairman of the Turkish Banking Association (TBB), spoke at the opening of the Sustainable Finance Forum organized in collaboration with the International Finance Institute (IFF) and TBB.

Green Transformation and the Finance Sector

Çakar emphasized the critical importance of the finance sector in the development of a sustainable world by stating, “In today’s world, a gradual and systematic green transformation is necessary to maintain economic continuity and growth potential.” Çakar highlighted the role of the finance sector in raising awareness and encouraging all stakeholders to transition to a green economy.

• Increasing greenhouse gas emissions are expected to lead to significant economic costs.
• The financial sector is highly exposed to climate risks due to providing financing to both sectors causing climate change and those affected by this change.
• Guidelines are being developed for the promotion of green financing through credit and debt mechanisms and for the measurement and management of climate risks.

Çakar noted that the Turkish banking sector is among the early adopters of sustainability principles, emphasizing the increasing importance of a ‘Sustainability-Oriented Approach’ and the increasingly critical role of banks in this field. Highlighting the importance of Turkey’s role and steps in the green transformation process, Çakar stated that the finance sector taking on a leadership role in the transformation is of crucial importance.