Turkey Seeks International Climate Finance
Turkey's climate envoy met with officials from the World Bank and World Resources Institute in Washington. The diplomatic effort aims to attract international climate finance and technical support ahead of COP31, signaling potential grant and blended finance opportunities for Turkish startups in energy security and industrial decarbonization.
- Turkey has set a goal to achieve net-zero carbon emissions by 2053 and, as part of its updated Nationally Determined Contribution (NDC), aims to reduce greenhouse gas emissions by 41% below a business-as-usual scenario by 2030. This long-term strategy, submitted to the UNFCCC, provides a roadmap for both public and private sectors, aiming to increase predictability for investments in green technologies. - To support its climate goals, Turkey and the World Bank have launched several projects, including the $400 million Turkey Climate Resilient Forests Project to address wildfire resilience. Additionally, the World Bank has approved a €360 million guarantee for the "Financing Adaptation for Growth Project" to enhance the climate resilience of Turkish firms. - A major initiative is the Turkey Industrial Decarbonisation Investment Platform (TIDIP), spearheaded by the European Bank for Reconstruction and Development (EBRD) in partnership with the World Bank Group. This platform aims to deploy €5 billion in investments by 2030 to decarbonize heavy industries like steel, aluminum, cement, and fertilizers, with a goal of reducing annual carbon emissions by over 20 million tons. - In its updated National Energy Plan, Turkey aims to increase its installed solar and wind energy capacity to 120 GW by 2035, requiring an estimated investment of $80 billion. This plan includes annual renewable energy tenders of at least 2 GW and investments of $28 billion to upgrade the grid. - Venture capital investment in Turkish climatetech is growing, though deal sizes are often small and at the seed stage. Between 2018 and 2022, $651 million was invested in 148 climatetech startups in the MENA and Turkey region, with Turkey having the highest number of deals at 80. - Ahead of hosting COP31, Turkey's designated high-level climate champion, Samed Agirbas, has been meeting with international bodies to discuss scaling up climate finance and expanding circular economy projects. At the summit, a significant 3 GW renewable energy agreement between Turkey and Saudi Arabia's Acwa Power, part of a larger 5 GW deal, is expected to be signed.
