Possible impacts of voluntary carbon market revenues on foreign exchange earnings in Turkey within the context of carbon footprint

The increase in greenhouse gases, caused by industrialisation and inefficient use of energy resources, has negative effects on growth and development. Carbon emission trading is a prominent issue of the Kyoto Protocol that aims to eliminate these effects. Even though Turkey has not benefited from the mechanisms in the Kyoto Protocol due to the absence of greenhouse gas restrictions, it has an important place in terms of its projects for Voluntary Carbon Markets. In this study, within the sustainable financing environment, carbon emission trading and infrastructure development efforts for carbon markets in Turkey are examined. The current situation is set out in the context of the sustainability index and carbon footprint criteria. The study in which policy recommendations are made for reducing the carbon footprint discusses the impacts of spreading carbon trade in Turkey on macroeconomic variables, including foreign exchange earnings in particular.