Green finance application against climate change

Climate change is one of the current issues. To ensure sustainability, a transition to green finance practices should be made, and green projects should be supported. Green finance comes in different forms, the most common and comprehensive being green bonds. Green bonds provide financial support for environmental projects and offer investment opportunities in green projects. Green banking aims to reduce the carbon footprint in combating climate change by creating eco-friendly credit policies. This plays a significant role in reducing the environmental impact of banking and taking further steps for a sustainable future. The main purpose of this study is to examine the importance of green bonds, which are one of the most necessary green financing practices, in achieving sustainability goals for governments and companies in fulfilling their environmental responsibilities, and to discuss the calculation of greenhouse gas emissions reduction caused by banking within the scope of green banking with simple models and solution suggestions. The study results emphasize the importance of increasing green financing practices in combating climate change. As a result of the findings, it was concluded that green banking should play an important role in reducing emissions from its own activities.