Financing Cyclical Economy Through Capital Markets: Green Bonds

Global warming-based climate change shows its effects on our daily lives more evidently. The risk-on natural habitats and the lives of their inhabitants are becoming more pronounced. Climate scientists express their warnings more frequently on various platforms that an urgent and efficient action plan needs to be put forward to prevent further damage to the planet. Even though they aim to raise awareness for the gravity of the situation, currently, it is observed that there is a lack of action. All these issues are on the radar of international institutions and organizations, and solutions are being offered. In this context, the significance of the capital markets, which have a central place in the financial ecosystem with their volume and vitality, cannot be denied. This study aims to evaluate the importance of the Debt Instruments, which are one of the cornerstones of capital markets in financing a sustainable and circular economy, and to address legal, financial, and classification problems of these instruments for both their issuance and usage purposes.