- EBRD new green financing facility in Turkey to strengthen green investments
- €53.5 million loan to TSKB co-financed by the Clean Technology Fund
- Investment to promote Turkey’s transition to sustainable, low-carbon and climate-resilient economy
The European Bank for Reconstruction and Development (EBRD) is supporting Turkey’s transition to an environmentally sustainable, low-carbon and climate-resilient economy through a new Green Economy Financing Facility (GEFF) in the country.
Co-financed by EBRD and the Clean Technology Fund (CTF), Turkiye Sinai Kalkinma Bankasi (TSKB) will receive up to €53.5 million loan, the first green credit line under the newly established GEFF Turkey.
The new facility consists of €500 million finance from EBRD, concessional financing from the Clean Technology Fund (CTF) and grants from the CTF and Turkey–EBRD Cooperation Fund. It builds on the success of the Turkey Sustainable Energy Financing Facility (TurSEFF) that has been running in Turkey since 2010.
Through this loan, TSKB will extend green credit lines to companies to enhance their energy efficiency, renewable energy and climate resilience measures.
In addition, TSKB will receive a technical assistance package to support its corporate climate governance (CCG) and on-lending practices. Technical assistance with regards to CCG will focus on practices and recommendations developed by the Task Force on Climate-related Financial Disclosures (TCFD). TSKB is a long-standing EBRD partner bank and a listed private sector development and investment bank in Turkey.
EBRD has been active in Turkey through its Sustainable Energy Financing Facilities (SEFFs) since 2010 with the launch of the Turkey Sustainable Energy Financing Facility (TurSEFF). This was followed by Mid-size Sustainable Energy Financing Facility (MidSEFF) later that year and Turkish Residential Energy Efficiency Financing Facility (TuREEFF) in 2014, with each product targeting a different sector and with different eligibility criteria to kick-start and develop the delivery of green finance.
By integrating the various products into one comprehensive framework, GEFF Turkey will further facilitate serving local financial institutions’ and meeting their shifting priorities. It will also enable EBRD to expand into new fields of cooperation, namely corporate climate governance and equal access to finance.
To date, a total of €2.8 billion in financing has been made available by the EBRD and other international finance institutions through the green financing facilities in Turkey, to lend onto their customers and clients for investment in high-performing green technologies and an additional €1 billion has been obtained in private sector investments.
The EBRD is a leading institutional investor in Turkey since 2009 and to date it has invested more than €15 billion in the country through 372 projects, with the overwhelming majority of those investments in the private sector.