Garanti BBVA and PwC Turkey organized a webinar discussing ESG and its impact on the energy sector, discussing the Paris Agreement, the European Union Green Agreement, the Carbon Regulation Mechanism at the Border, the need for incentives for a sustainable financial market and action proposals. Emre Hatem, Investment Banking and Finance Director of Garanti BBVA, Murat Çolakoglu, PwC Turkey Energy Infrastructure and Natural Resources Sector Leader, Evren Sezer, PwC Turkey ESG Platform Leader and Mehmet Özenbas, ESG Director of PwC Turkey, shared their views.
Commenting on the green transformation in the energy sector and developments in the sustainable finance market, Garanti BBVA Investment Banking and Finance Director Emre Hatem also gave information about Garanti BBVA's financing opportunities for the transition to low carbon energy. Emre Hatem said: "In order to reach the net-zero carbon target for 2050, investment in clean energy sources globally needs to increase to an average of $4.2 trillion annually by 2030. Current investments amount to $400 billion. So existing investments need to increase by about 10 times. Banks will obviously have an important role to play in meeting this need, but new resources such as green bonds, green funds and green IPO will also need to be created. In addition to increasing renewable energy investments; Within the scope of the Border Carbon Regulation Mechanism, it is necessary to develop strategies especially in carbon-intensive sectors such as iron and steel, cement, automotive, energy, electricity, aluminum and fertilizer. Protecting our customers operating in these sectors from the risks of transitioning to a low-carbon economy by directing them to green transformation and mediating their investments in this scope will be one of our most important tasks on our roadmap."
Emre Hatem continued: "As Garanti BBVA, we have provided a total of $6 billion in financing for renewable energy investments within the scope of project financing by the end of 2021. We continue to maintain the sector leadership with a market share of approximately 23% within Turkey's installed wind power."
PwC Turkey Energy Infrastructure and Natural Resources Sector Leader Murat Çolakoglu, who discussed the opportunities and risks posed by ESG to the energy sector at Webinar, said that ESG issues are of great interest to all segments of society and business. Murat Çolakoglu stated: "Especially the global and regional steps taken to slow and reverse global warming are affecting the energy sector and energy intensive sectors very closely. Companies all over the world are competing for their emissions targets. The issue revolves around the 'energy' sector. Because emissions are either linked to how you produce energy or how you use it and for what. In this context, each letter of the concept of ESG constitutes a serious homework assignment for energy companies. With energy efficiency and increased concentration on renewable power plants, what needs to be done increases, while at the same time bringing with it a serious need for financing. Countries that prepare fast and reliable regulatory infrastructure and take rapid steps towards their international commitments will determine where the existing capital in the world will go."