Credit line to combat climate change

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The project will provide a financing line for investments in measures to improve resource efficiency and environmental protection in industry via the Turkish bank Türkiye Sinai Kalkinma Bankasi AS (TSKB). This will expand the range of medium and long-term financing for private investments in energy and process efficiency, industrial recycling and environmental measures. The project will help reduce energy and resource intensity and eliminate environmental pollution in Turkish industry, thereby reducing CO2 emissions and negative environmental effects. The project is sponsored by the TSKB, which, as a privately owned national development bank, plays a central role in the implementation of Turkish environmental and economic policy. The EUR 150 million credit line builds on the existing successful cooperation with the TSKB in the field of promoting resource and energy efficiency and environmental measures in industry. One focus of German-Turkish cooperation is environmental and climate protection. The focus is on promoting renewable energies, improving energy and resource efficiency, environmental protection and the regional integration of Turkey into the pan-European energy community. Turkey is heavily dependent on energy imports and can only cover around 30% of its primary energy needs from its own resources. As a consequence of the strong economic growth of the last ten years, energy consumption has risen sharply. Growth in energy demand has been well over 6% p.a. in recent years. Against this background, the rapid expansion of domestic energy sources and the promotion of energy-saving measures in the industrial, building and transport sectors are key aspects of Turkish energy policy. Other production resources (water, raw materials, etc.) are also used relatively inefficiently in Turkey. The country's resource productivity is only around half the EU average. The relevant Turkish legislation, which aims to comply with the EU environmental acquis, requires extensive investments in the area of environmental protection and resource efficiency in the medium term.