Turkish Climatetech Moves from Pitch to Deployment
Turkey's climatetech ecosystem is showing signs of maturation, moving from the ideation stage to real-world impact. While demo days continue to showcase a pipeline of early-stage startups, other initiatives are already being deployed, such as a recent project bringing solar power to rural schools.
A major policy push is the Türkiye Industrial Decarbonisation Investment Platform (TIDIP), launched in late 2024. Spearheaded by the European Bank for Reconstruction and Development (EBRD) and backed by the World Bank Group, the platform aims to deploy €5 billion in investments by 2030 to cut over 20 million tonnes of carbon emissions annually. The initial focus is on decarbonizing high-impact sectors like steel, aluminum, cement, and fertilizers. This national strategy is complemented by ambitious renewable energy targets, aiming for a combined 120 GW of solar and wind capacity by 2035 as part of the country's 2053 net-zero emissions goal. The government's National Energy Plan projects the share of renewables in installed power to hit 65% by 2035, a significant jump from 53% in 2023. This buildout is critical for energy security, as Turkey spends approximately $40 billion annually on energy imports. Venture capital is flowing into the sector, with Turkish climatetech startups seeing the highest number of deals in the MENA region, attracting 80 deals between 2018 and 2022. While total funding amounts are still emerging, 2022 was a record year for the region, with investment crossing a quarter-billion dollars. Key investors active in the broader Turkish tech scene, including deep-tech focused Diffusion Capital Partners and corporate funds like Sabancı Ventures, are players to watch. To foster early-stage innovation, programs like the Global Cleantech Innovation Programme (GCIP) in Türkiye, executed by TÜBİTAK, are providing acceleration, mentorship, and investor access to startups in areas like energy efficiency and waste management. The government has also expanded the capital pipeline for early-stage companies, recognizing that traditional financing doesn't fit their needs, setting a goal to see 100,000 tech startups by 2030. The industrial sector is responding to both policy and market pressures, such as the EU's Carbon Border Adjustment Mechanism (CBAM), which impacts Turkish exporters. Steel manufacturer Kardemir, for example, has committed to a 19% reduction in Scope 1 and 2 emissions by 2030 and achieving net-zero by 2053, integrating the cost of carbon into its investment planning. This push for industrial decarbonization is creating a significant domestic market for climatetech solutions.
