Green Finance And Sustainable Policies: Driving The Transitıon To A Low-Carbon Economy

Investments supporting environmental sustainability have become a strategic tool in combating global problems such as climate change, depletion of natural resources and environmental degradation. In this context, renewable energy, energy efficiency, sustainable agricultural practices and projects to reduce carbon emissions come to the fore. Nature-friendly investments facilitate the achievement of sustainable development goals by providing both environmental and economic benefits. With the increasing environmental awareness in the 1990s, investment models in this field started to develop and gained a wider momentum thanks to global initiatives such as the Paris Climate Agreement and the European Green Deal. Financial instruments such as green bonds, sustainability-linked loans and carbon markets developed within this framework play an important role in the realisation of environment-focused projects. Throughout the process, effective co-operation between public institutions, regulatory authorities and the private sector has been developed. In this transformation process, policies determined at national and international level are particularly guiding. While the Paris Climate Agreement's goal of limiting the global temperature increase to 1.5 °C provides a guiding framework for environment-based investments, the European Green Deal includes concrete steps aiming to transition to a carbon neutral structure by 2050. In developing countries such as Turkey, renewable energy subsidies, efficient resource management and sustainable development plans support this process. Innovative financial instruments integrated into environmentally friendly policies make it possible to sustain economic growth in an environmentally sound manner. However, long-term and inclusive strategies need to be developed to increase the wider uptake and impact of environmental investments.