Metsims was the sustainability advisor for Turkey’s first transition bond issuance
Metsims Sustainability Consulting was sustainability advisor for Palgaz Doğalgaz Dağıtım as the Issuer on its 200 million TL (just over 28 million USD) transition bond issuance, where Kalkınma Yatırım Bankası acted as the sole financial advisor. This is the first issuance of such bond focusing on low-carbon transition in Turkey. The proceeds will be used for the infrastructure project which will provide lower carbon energy source compare to business as usual. With such investment, the project will facilitate reduction of 63% in carbon emissions equating around 1.9 million ton CO2 for the two years project time.
Environmental impact of the project is assessed using ISO 14040/44 Life Cycle Assessment standard, a science-based impact assessment method focusing on many environmental indicators including climate change in a single assessment. Founder and Managing Director Dr Hüdai Kara “while focusing on the Project’s carbon impacts, we also take into account other potential environmental loadings or benefits by looking at the project from whole life cycle perspective. This unique assessment approach avoids potential problems of burden shifting by focusing on a single issue. It was a completely holistic, measurable and transparent evaluation” said.
Transition bonds are a new asset class targeted at industries with high greenhouse gas (GHG) emissions that will allow them to raise capital with the goal of reducing their carbon emissions. Their objective is to help the issuer shift to greener business activities. Many industries, however, are not green today, cannot be entirely green tomorrow. But they might be with the right incentives and take active steps to become more sustainable
As a leading sustainability consulting in the UK, Europe and Turkey, Metsims Sustainability Consulting will lead the way in the development of sustainable finance in Turkey, as successfully done with its highly acclaimed collaborations of Turkish Life Cycle Inventory Database, SDG Turkey and Turkish Sustainability Code,