Turkish families invest in energy efficient homes

By Olga Rosca
@olgarosca


Gundogu family from Istanbul is among 2800 families to invested in a greener home thanks to loans made available via TuREEFF

  • Over 50,000 households benefit from EBRD-led TuREEFF programme
  • 2,800 people invest in eco-friendly homes thanks to loans and mortgages available via local banks
  • TuREEFF projects help save carbon equivalent absorbed yearly by 330,000 trees

Over 50,000 Turkish households have invested in environmentally friendly homes thanks to a lending programme developed jointly by the EBRD, the European Union (EU) the Clean Technology Fund (CTF) under Climate Investment Funds (CIF).

Turkish Residential Energy Efficiency Financing Facility (TuREEFF) had provided up to US$ 350 million to four local banks, Garanti BBVA, Şekerbank, Türkiye İş Bankası and Yapı Kredi Bankası, funds which were then on-lent to households, construction companies and vendors of energy-saving household equipment.

Two thousand eight hundred people took out TuREEFF mortgages and loans to either buy eco-friendly homes or equip them with energy-saving technologies.

Over 50,000 other households have benefited indirectly: they equipped their homes with efficient heating or cooling systems, windows or white goods acquired from specialised vendors financed by TuREEFF. Additionally the programme has financed 430 projects, which range from new environmentally friendly property developments to making older buildings greener.

Since the programme was rolled out in 2015, these investments resulted in energy savings in excess of 29.3 GWh/year and a reduction of greenhouse gas emissions of 7,390 tonnes of CO2 equivalent or the amount of carbon 330,000 trees absorb in a year.

In Turkey, the energy consumption of buildings exceeds that of industry and households account for 50 per cent of electricity consumption of all buildings.

Speaking at a forum in Istanbul marking TuREEFF’s results, EBRD Managing Director in Turkey, Arvid Tuerkner, said: “Climate is changing and so are our lives. We are all becoming eco-consumers and there is no better place to start than at home. TuREEFF, developed by the EBRD with funding from the EU and the CTF, has made money available for Turkish families to make that change. I am proud of the role the EBRD has played in pioneering this lending programme and congratulate all involved on the results we have delivered together.”

The event also included an awards ceremony that recognised seven projects for their outstanding contribution to the reduction of greenhouse gas emissions and the transition to a green economy.   

The award winners are Istanbul-based construction companies Zafer Hakan Yapı Insaat and Hun Perakende Insaat; an environmentally friendly residential complex, Tema Istanbul; Eskişehir-based white goods vendor Eldem A.Ş; Antalya-based cooling system provider Modern Klima; Istanbul-based heating system distributor Elvan Insaat; and windows vendor Neyka Nakliyat from Ankara.

TuREEFF follows the model of the EBRD’s Green Economy Financing Facility (GEFF) that operates through a network of more than 140 local financial institutions across 26 countries supported by almost €4.2 billion of EBRD finance for 130,000 clients. These projects have led to annual CO2 emission reductions of over almost 7 million tonnes.

The EBRD and CIF have worked together for a decade on investments in climate change mitigation, adaptation, renewable energy and energy efficiency. From 2009-19, the CIF has supported more than 90 EBRD endeavours, providing nearly US$ 450 million in concessional loans or grants for technical cooperation. Established in 2008, the CIFs comprise both the CTF and the Strategic Climate Funds (SCF).

The EBRD is a leading institutional investor in the country and since 2009 has invested over €11.5 billion in almost 300 projects in Turkey. The overwhelming majority of EBRD investments in Turkey are in the private sector. More than half of the Bank’s projects promote the sustainable use of energy.