Climate and environmental issues are the source of structural change that deeply affects the financial system and capital markets. The material and moral effects of the climate crisis are increasing day by day and reaching great dimensions. It is not possible to ignore environmental risks. The cost of not cooperating with the environment is increasing day by day. Effective work needs to be done in the markets to minimize carbon emissions and combat climate change. In this context, all financial institutions must play an active role. For a sustainable future, it is also necessary to take radical financial decisions to reduce carbon emissions and ensure the transition to clean energy. It is feasible to achieve sustainable development with green financing. Central banks are one of the most effective financial institutions operating for the purpose of executing, regulating and supervising the financial system. In addition, central banks have assumed responsibility for financial and macroeconomic stability. Central banks are strong market actors who will regulate, develop and support green finance models and ensure that environmental and carbon risks are appropriately priced by financial institutions. Central banks are taking steps to combat climate change. Especially central banks in developed economies pay careful attention to the issue, considering climate risk as one of the most important financial risks. In Turkey, the Central Bank of the Republic of Turkey (TCMB) is working on green finance. In this study, first of all, the importance of markets being green, social and sustainable is examined. It is also discussed in this context why central banks should be interested in aligning finance with sustainable development. Also in the study; While environmental risks are also examined and regulations that can encourage green financing and sustainable development are included, instruments that can be used by financial regulatory institutions, the TCMB and other central banks, while creating a sustainable, environmentally friendly economic environment are also reviewed.