88 NEWSLETTER 2021 The Practice of Green Bonds in the World and Turkey* Özgür Kocabaşoğlu Green Bonds are, in brief, fixed income securities issued for borrowing from the markets in accordance with the conditions in the prospectuses accepted by the issuers, designed specifically for use in preventing climate change or for other environmental projects. In addition to promoting sustainability, these bonds provide certain tax advantages. The global Green Bond market (including all green, social and sustainability bonds) is expected to reach a size of over 650 billion USD in 2021.1 Considering that the first such bond was the “climate awareness” bond issued by the European Investment Bank in 2007, and that the first bond actually labeled as a Green Bond worth 300 million USD was issued by World Bank in 2008, the growth reached in this short time may be seen more clearly.2 In fact, as of May 2021, the World Bank has issued more than 185 Green Bonds worth 16 billion USD in 23 different currencies. The Green Bond market is gaining in value day by day and attracting many investors. In 2020, the issuance of bonds in the green, social, sustainable and sustainability-related bond market (“GSSS”) doubled compared to 2019 and reached 600 billion USD. The issuance of Green Bonds in the GSSS market reached a size of 300 billion USD.3 As the Green Bond market continues to grow, it has become necessary to set certain standards for the appropriate use of Green Bonds * Article of October, 2021 1 https://www.edie.net/news/7/Global-green-bond-investment-set-to-break-records--surpassing--500bn-in-2021/ (Access date: 23.01.2022). 2 h t t ps : / /www. oecd . org / env i ronmen t / cc /Gr een%20bonds%20PP%20 %5Bf3%5D%20%5Blr%5D.pdf (Access date: 23.01.2022). 3 https://www.environmental-finance.com/assets/files/research/sustainable-bondsinsight-2021.pdf (Access date: 23.01.2022).
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