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EBRD President pledges full support for Turkey’s green transition

By Olga Rosca

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©Anadolu Agency 

EBRD President Odile Renaud-Basso discusses the Bank’s work in Turkey on a visit to Istanbul

  • EBRD ready to help finance Turkey’s green transition, President Renaud-Basso says on first visit to Turkey
  • President calls for a more inclusive economy, pledges €600 million in new financing for women-led businesses
  • Economic stability and predictability of policies key for private sector and investors, Ms Renaud-Basso tells Turkey’s political leadership

During her first official visit to Turkey, Odile Renaud-Basso, the President of the European Bank for Reconstruction and Development (EBRD), has reiterated the Bank’s commitment to help develop decarbonisation strategies and finance the country’s green transition.

Turkey ratified the Paris Agreement on 6 October and announced a 2053 net zero goal.

Ms Renaud-Basso said: “We warmly welcome Turkey’s ratification of the Paris Agreement and net zero commitment. These major steps create the environment that allows the private sector and investors such as the EBRD to really step up investment activity. We stand ready to accompany Turkey in defining the strategies needed to reach net zero”.

Half of the EBRD’s investment in Turkey already supports the country’s shift to a low-carbon economy. To date, the Bank has provided €6.6 billion through 175 projects – mostly in the private sector but also to Turkish cities and households – in support of greater sustainability and resource efficiency.

In 2021, the Bank is likely to provide around €1.5 billion in financing for the Turkish economy with roughly half of that amount in green financing.

During her trip, the President signed a €150 million loan to Turkey’s leading household appliance manufacturer, Arçelik, to support a three-year environmentally sustainable investment programme. The first €83 million tranche of the EBRD loan is structured in line with the Green Loan Principles of the Loan Market Association and is the first externally verified green loan to Turkish manufacturing.

She also visited the research and development centre of Ford Otosan, the US automaker Ford’s joint venture with Turkey’s Koc Holding. The company is producing next generation all-electric and plug-in hybrid commercial vehicles with the financial backing from the EBRD.

In her meetings with President Recep Tayyip Erdogan, Minister of Treasury and Finance and EBRD Governor Lütfi Elvan, and Central Bank Governor Sahap Kavcioglu, Ms Renaud-Basso stressed the importance of macroeconomic stability, credible and independent institutions, and predictable business climate for the development of the private sector.

She called for a more sustainable and inclusive economy and announced €600 million in new financing for Turkish women entrepreneurs. The funds will be channelled through local banks and lent to eligible women-run businesses under the Bank’s expanded Women in Business programme.

The President said: “Working with our strong partner financial institutions, the EBRD is determined to narrow the funding gap for female entrepreneurs and to help Turkey unleash the power of its women.”

Ms Renaud-Basso also underlined the EBRD’s support for Turkish municipalities in meetings with the Mayors of Ankara, Istanbul and Gaziantep, Mansur Yavas, Ekrem Imamoğlu and Fatma Sahin, respectively. Along with Izmir, the three cities have joined the EBRD Green Cities programme, which helps address the enormous environmental challenges presented by urban conurbations.

Ms Renaud-Basso also had meetings with Minister of Transport and Infrastructure Adil Karaismailoğlu and Deputy Minister of Energy and Natural Resources Alparslan Bayraktar.

She held discussions with several small businesses, including women-run companies, which benefitted from the EBRD’s support, and met civil society organisations.

The EBRD is a major investor in Turkey. To date, the Bank has invested more than €14 billion through 351 projects in various sectors of the country’s economy, with 95 per cent of those investments in the private sector.

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