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The Banks’ Association of Turkey (TBB) and EBRD organise a roundtable on Carbon Market Services for Banks

ISTANBUL, 21 October 2015 – A roundtable was organised by the Banks’ Association of Turkey (TBB) and EBRD for members of the Association’s environmental working group. Purpose of the meeting was to discuss the regulation and regulatory oversight of Turkish banks on providing Carbon Market Services. In total 20 participants joint the meeting representing several Turkish banks.

Carbon market services are services that financial institutions may offer in response to carbon market developments. A broad spectrum of these services may be considered. However, to give direction to the discussion four key potential carbon market services had been identified: (i) Carbon Project Origination and Finance to find and assist clients with developing Carbon Projects; (ii) Centre of Competence to apply specific Carbon related knowledge to internal departments and external clients with risk and opportunities resulting from Carbon regulations; (iii) Carbon trading in spot and derivatives on own account (propriety), client’s account (client trading) or as a broker; and (iv) offering Green Credit Cards.

It was concluded that these carbon market services are very similarity to other already regulated activities. Therefore, for most of these services there appears to be limited need to clarify regulatory oversight. However, un-clarity remains to the classification of carbon related spot and derivatives trading. As a result, it remains also unclear if and how banks can engage in any of the identified carbon trading activities. This unclarity might need to be clarified by the Turkish Banking Regulator (BBDK) in the near future. To find out more, click here.