Evaluation of the green sukuk market in Türkiye as a new debt instrument

In today's world, where the impacts of global problems such as climate change, depletion of natural resources, and environmental degradation are becoming increasingly severe, the need for financial instruments that promote sustainable development has grown substantially. In this context, green bonds play a vital role in financing environmentally friendly projects, serving as a bridge between eco-conscious investments and financial markets. The primary aim of this study is to outline the general framework of green bond practices and to analyze the current state of the green bond market in Turkey, while offering policy recommendations for its further development. In the literature section of the study, after explaining the concepts of bonds and green bonds in general, the development of the green bond market on a global scale was examined. In the application section, green bond issuances in Turkey were evaluated through private and public sector examples and the current situation in the green bond field was analyzed and a SWOT analysis was included. The findings revealed that the green bond market in Turkey is in the development stage, but its potential is quite high. The biggest obstacles to the expansion of the market include low investor awareness, limited secondary market liquidity and lack of transparency in reporting environmental impacts. Recommendations such as strengthening legal regulations, establishing incentive mechanisms and adopting sustainability principles at the institutional level were included for the development of the green bond market in Türkiye.