Coordinating Green Transition Through Regulatory Intermediaries? Growth Model, Bureaucratic Politics, and Policy Capacity Drivers of Policy Non-Coordination

Green transition poses significant policy challenges regarding its finance and coordination within the state apparatus and that of between the state actors and non-state actors. Regulatory intermediaries can be employed to address these challenges. Yet the contextual and agential factors determine (in)effective intermediary role. This paper scrutinises the intermediary role of the banking sector in financing green transition and being an intermediary between the bank regulator and the private sector that is expected to implement low carbon emissions investments. Relying on elite interviews and secondary sources, the paper examines the Turkish context and argues that the bank regulator’s proactive regulatory stance and its positioning banks as an intermediary remain limited due to the interaction between the capital inflow-dependent credit-led growth model, bureaucratic politics within the state apparatus, and policy capacity deficiencies in the private sector and the public sector.