In Conversation with Mr. Gazi Kara Deputy Governor, Central Bank of the Republic of Türkiye

1.    When and why did your institution join the NGFS?

The Central Bank of the Republic of Türkiye (CBRT) joined the Network for Greening the Financial System (NGFS) in December 2021.
In terms of timing, two factors are worth noting. First, the CBRT placed greater emphasis on climate-related issues, addressing their implications for monetary policy and central banking prior to joining the NGFS. This decision reflected the growing significance of climate-related risks for economic activity, price stability, and financial stability, and the importance of assessing these risks within central banks’ existing mandates. For example, the Bank established the Green Economy and Climate Change Division in November 2021, providing an institutional framework for its climate-related activities. This focus was also reflected in the Bank’s October 2021 Inflation Report.
Second, the CBRT’s decision to join the NGFS was closely aligned with Türkiye’s broader climate agenda. In 2021, Türkiye ratified the Paris Agreement, announced its 2053 net-zero emissions target, and published the Green Deal Action Plan.  This period marked an acceleration in Türkiye’s efforts to address climate change at the national level, with growing emphasis on climate-related policies and initiatives.
Against this backdrop, joining the NGFS has provided the CBRT with a platform to better understand the macroeconomic and financial implications of climate change, strengthen international cooperation, and facilitate knowledge sharing with other central banks and regulatory institutions. Through the Network, we aimed to benefit from international experience and emerging best practices in understanding climate-related developments and their economic and financial implications. We have also sought to contribute to the Network’s discussions through our own experience and research.

2.    Can you share with us the key elements of the CBRT’s climate strategy and how it fits into the broader national strategy in your jurisdiction?

The CBRT’s approach to climate change focuses on assessing climate-related macroeconomic and financial risks, strengthening analytical capacity, and contributing to the national climate agenda through research, analytical studies, and technical input into the development of relevant policies and regulatory frameworks. Consistent with the Bank’s mandate, this approach aligns with Türkiye’s 2053 net-zero emissions target and broader climate objectives. We maintain close coordination with the Ministry of Environment, Urbanization and Climate Change, the Ministry of Treasury and Finance, and the Banking Regulation and Supervision Agency, as well as other relevant public institutions.
Our contributions primarily focus on the economic and financial dimensions of climate-related developments. Building on our active engagement in Türkiye’s Climate Council held in February 2022, we have provided technical input through expert meetings and workshops on Türkiye’s Green Taxonomy, preparations for the Emissions Trading System and the national carbon market, and sustainability reporting frameworks. We also contribute, within our mandate, to relevant initiatives and actions under the National Green Finance Strategy and Action Plan (2026–2029), including efforts to strengthen the financial sector’s capacity to address climate-related risks. Our contributions mainly concern macroeconomic and financial implications, data requirements, and technical expertise.
Research and analytical capacity building are also central to our approach. Our activities include research publications, analytical studies, technical cooperation with other central banks, and internal seminars to strengthen institutional knowledge on climate-related issues.
Improving data availability is another priority. Since November 2023, the CBRT has published data on environmental, social, and governance (ESG) debt securities issued by resident entities in domestic and international markets as part of its Securities Statistics. These data support the monitoring of relevant financial market developments and related analysis.
To ensure continuity, we have incorporated climate-related priorities into the CBRT’s 2026–2028 Strategic Plan. A strategic project, expected to be completed by December 2028, focuses on examining the implications of climate-related developments for central banking, strengthening data infrastructure, and advancing climate-related analysis. We also expect data from our work on assessing real-sector firms’ climate risks and sustainability profiles to provide valuable inputs for evaluating physical and transition risks and conducting broader climate-related research, including scenario analysis.
Overall, our approach combines analytical and institutional capacity building with technical contributions to Türkiye’s national climate agenda, while remaining aligned with the CBRT’s primary objective of price stability and its existing mandate.

3.    To which extent did the CBRT leverage the work of the NGFS in its own domestic journey? Any concrete examples?

Since joining the NGFS, the CBRT has actively engaged in the Network’s activities, drawing on its analytical frameworks, publications, and technical discussions to support our climate-related research. Through participation in NGFS workstreams, we have exchanged experiences with other central banks and financial supervisors and contributed to collaborative efforts addressing the implications of climate change for central banking.
Climate scenario analysis is one of the key areas in which we have benefited from the NGFS’s work. The Network’s long- and short-term scenarios provide robust frameworks for exploring the macroeconomic and financial implications of physical and transition risks under different climate pathways. At the CBRT, we are working to develop analytical approaches that take into account the structural characteristics of the Turkish economy and relevant country-specific vulnerabilities.
Our efforts focus on understanding how climate-related developments, including extreme weather events, changes in energy prices, carbon pricing mechanisms, and international climate policies, may affect economic activity, inflation, and financial conditions. NGFS scenario methodologies offer important references for examining the transmission channels and exploring potential risks under alternative assumptions.
Our participation in the NGFS’s Scenario Design and Analysis and Monetary Policy workstreams, including activities within the Monetary Policy Operations subgroup, has also been valuable. The Network’s published reports and technical discussions provide opportunities to exchange methodological perspectives and better understand the implications of climate-related developments for monetary policy and central banking operations. These engagements support our analytical work while allowing us to draw on experiences from institutions operating under different mandates and policy frameworks.
Another important area is the NGFS’s work on climate-related data. Access to reliable, consistent, and comparable data is essential for understanding climate risks, assessing firms’ exposures, monitoring financial developments, and conducting sound economic research. Beyond risk assessment, better data can contribute to a more informed understanding of the green transition and support evidence-based contributions to the broader national climate agenda. In this respect, NGFS publications and technical discussions provide valuable references for identifying data gaps, improving analytical approaches, and strengthening our institutional data capabilities.
Alongside our technical engagement with the Network, I have had the privilege of serving on the NGFS Steering Committee this year in my capacity as Deputy Governor of the CBRT. Participating in its discussions has been a valuable experience, further reinforcing my appreciation of the Network’s role in fostering meaningful cooperation and strengthening our collective understanding of climate-related challenges. 
Overall, our engagement with the NGFS has provided valuable methodological insights and practical perspectives for our ongoing work. Combining international experience with domestic data and country-specific considerations remains central to strengthening our understanding of climate-related economic and financial risks.

4.    One last word?

As Türkiye prepares to host COP31 in Antalya in November 2026, we see this event as an important opportunity to strengthen international cooperation and advance the implementation of climate commitments. Building on the progress achieved at previous conferences, COP31 offers a valuable platform for promoting concrete actions, investments, and measurable outcomes, particularly in climate finance, adaptation, and resilience.
With a strong emphasis on implementation, including the Climate Implementation Bridge Initiative, COP31 aims to accelerate the translation of climate commitments into practical outcomes. The conference is expected to attract around 100,000 participants, making it one of the largest international gatherings on climate change. Antalya’s strong track record in hosting major global gatherings and its strong conference infrastructure provide an ideal setting for an event of this scale. 
In this context, the CBRT is organizing an international conference in Antalya on November 13, 2026, during COP31’s Finance and Trade Day. The event will bring together senior representatives of central banks and international institutions to discuss the macroeconomic and financial implications of climate change, climate-related risk transmission channels, scenario analysis, climate-related financing and data, and the economic costs of inaction.
We are particularly pleased to welcome NGFS Chair Olaf Sleijpen, alongside Frank Elderson, the Network’s founding Chair, and Sabine Mauderer, its immediate past Chair, as well as distinguished central bank leaders and representatives of international financial institutions. We believe that bringing together diverse institutional perspectives will provide a valuable opportunity to exchange experiences, share analytical insights, and strengthen cooperation on these increasingly important issues.
As COP31 places emphasis on translating commitments into implementation, we see our conference as a meaningful contribution to discussions on the economic and financial dimensions of climate change. By facilitating dialogue among policymakers, central banks, and international organizations, we hope to encourage more informed and practical approaches to addressing climate-related challenges.
The CBRT looks forward to continuing its active engagement with the NGFS and contributing to international efforts to better understand climate-related risks and strengthen economic and financial resilience.