Climate Finance Programme (UFK) - TSKB

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On October 21, 2021, a multilateral Memorandum of Understanding (MoU) was signed between Turkey and six development partners to support Turkey in implementing its goals for sustainable, climate-friendly and climate-resilient development under the Paris Climate Agreement. Turkey ratified the Paris Climate Agreement on October 7, 2021 and set itself the goal of becoming climate neutral by 2053. The energy sector plays an important role in this and Turkey has therefore set itself high goals for the expansion of renewable energies and increasing energy efficiency in the economy, buildings and transport. As part of the MoU, the German federal government has pledged loan financing of EUR 200 million for additional climate protection and climate adaptation measures in Turkey. The loan financing will be implemented in the form of credit lines for climate protection projects via Turkish development banks. The partner banks provide loans on preferential terms to private or public companies for the financing of climate protection projects. The focus of the financing is on emission avoidance and reduction measures in the energy sector, both on the producer side (expansion of generation capacity from renewable energy sources) and on the consumer side (energy efficiency measures in industry). In order to ensure the promotion of particularly ambitious and innovative measures, the loan is to be accompanied by investment cost subsidies of EUR 20 million. Funding from the International Climate Initiative (IKI) is provided for this purpose. The overarching goal of the financing is to make a contribution to limiting climate change, environmental protection and sustainable socio-economic development in the country. In addition, strengthening and diversifying generation capacity will result in better security of supply.