Sustainability and Carbon Footprint Revenue Model

Şirketler sürdürülebilirliklerini iyileştirmeyi veya karbon ayak izlerini küçültmeyi sağlayacak projelerini hayata geçirebilmek için çok uygun koşullarda finansmana erişebilirler. Projelerinin, söz konusu bu faydaları sağlayacaklarını, net ve sayısal biçimde ortaya koyabildikleri ölçüde, yatırım bankaları ve girişimlerindeki yeşil fonlara ulaşmaları kolaylaşmaktadır. Ancak bunun için öncelikle,

1. Clearly calculate their current sustainability levels and carbon footprint
2. Report these accounts
3. Prepare analyses that quantify how much their projects will change these indicators

required.

By implementing the green projects prepared in these analyzes, companies,

• Increase their value-added production per resource used
• Increase the rate of reuse of waste as material or energy
• Implementing technologies to reduce carbon emissions

It is important for them to foresee the success rate they want to achieve in such goals. In this way, they may be able to articulate the direct impact of their green projects on increasing their sustainability levels or reducing their carbon footprint. In this context, in the first step, it would be useful for them to prepare feasibility studies that express the percentages in which they will achieve one or more of these goals.

In the second step, they should explain the reflections of the performance improvements that will enable them to achieve these targets on their sustainability levels or carbon footprints through relevant indicators. For example, quantifying the changes in sustainability or carbon footprint indicators to the extent to which they will achieve the above targets will be the move that will facilitate projects' access to funding at the highest level.

Examples of Green Projects

Examples of such project contents can be listed as follows:

• New energy production/transmission/distribution technologies
• Renewable energy power plants
• Waste-to-energy plants
• recycling facilities
• Resource efficiency / process optimization systems
• water treatment plants
• Innovative green fuel and material solutions
• Carbon capture units

Examples of current programs and organizations that can apply for loan and grant programs under favorable conditions if these projects are prepared as described above are as follows:

• Ministry of Industry and Technology Turkey Green Industry Project
  • TÜBİTAK
    • Bileşen 1: Yeşil İnovasyon Teknoloji Mentörlük Desteği
    • Bileşen 2: Sanayide Yeşil Dönüşüm Desteği
    • Bileşen 3: SAYEM Yeşil Dönüşüm Desteği (Sanayiye Yönelik Ar-Ge ve Yenilik Ağları)
  • KOSGEB
    • Clean and Circular Economy in Industry
    • Supporting Solar Energy Investments of Industrial SMEs
• European Union Green Transformation Funds
• EBRD, IFC, World Bank etc. green project applications
• Green investment capital trusts

Environmental and Social Impact Assessment Process

Once the preparation phase for such programs and capital partnerships is completed, the environmental and social impact assessment process, commonly abbreviated as ESIA, is required to be managed before the project implementation phases. At this stage, according to the content determined according to the standard norms of the funder, potential environmental interactions in the area where the project will be implemented, resource efficiency indicators of the project, biodiversity and ecological balance are taken into account. In addition, if there are communities or individuals who may be socially affected by the project, it is expected to establish the necessary mechanisms to manage them in a participatory framework. These assessments are transformed into indicator mechanisms that will be audited and monitored throughout the project. In this way, it will be possible to realize the projects.

Green Finance Economy

As projects are implemented or ready for implementation, companies may also be able to access new financing. It should not be forgotten that the basis of these projects are initiatives to increase the sustainability or reduce the carbon footprint of the companies involved. If it is possible to clearly declare these changes, it will also be possible to produce financial instruments indexed to these changes.

The unit values of these instruments, which will be modeled as green bonds, bills or funds, will be determined by the changes in the sustainability level or carbon footprint declared by companies. Depending on these changes, the unit values of these instruments may increase. This is because there are companies that can gain an advantage in their own trading by buying these changes in different markets around the world. For example, in emissions trading exchanges or sustainability funds markets, it is possible for different companies to gain an advantage in their trading by purchasing the documentation of these changes.

Examples of mechanisms that may exemplify this situation are as follows:

• Sustainability (ESG) bonds and bills
• Green bond issuances
• Sustainability fund instruments
• Fund instruments available for direct purchase on the sustainability and carbon exchange
• Carbon exchange certificates

As a result, if managed with the right process, it is possible for a company to increase its sustainability or reduce its carbon footprint to have buyers or shareholders in different markets and exchanges.