Turkey Agrees to Record $1.6 Billion Climate Policy Funding Deal

Turkey and the Asian Infrastructure Investment Bank (AIIB) on Thursday agreed on a $1.6-billion climate financing package to support Turkey’s climate goals in the biggest climate-focused deal of the Asian bank to date. The deal was announced in Antalya, where Turkey is hosting the COP31 global climate summit until November 20. Under the agreement, AIIB founding member Turkey will access a Climate-Focused Policy-Based Financing (CPBF) loan for the Türkiye Climate Action Acceleration Program (TCAAP) with supplemental financing under AIIB’s Energy, Food Security and Economic Resilience Facility (TCAAP-SF) in equal amounts. The climate package to Turkey is AIIB’s largest climate-focused policy-based financing package to date, aimed at supporting Turkey’s Climate Law and its Second Nationally Determined Contribution, which sets a 2035 emissions target as part of the country’s pathway to net zero by 2053. Turkey, for its part, has recently unveiled its new energy plan to 2040, which targets total investments of $500 billion in energy infrastructure. The new energy plan looks to slash the import bill while strengthening the homegrown resources, including gas in the Black Sea and a fourfold jump in installed solar and wind power capacity. Turkey looks to boost its energy independence and eventually become energy independent, the Minister of Energy and Natural Resources, Alparslan Bayraktar, said last week. The country aims to boost its wind and solar installed capacity fourfold to 175 gigawatts (GW) by 2040, and raise the share of renewable energy of its installed electricity-generation capacity to 77%. In the new era of mobility, Turkey will also target 20 million electric vehicles (EVs) by 2040, while policies to increase energy efficiency are expected to bring $240 billion in savings, Bayraktar said. Last year, Turkey ranked fourth in Europe in EV sales, with 190,000 fully electric vehicles sold, or 17% of total new car sales, energy think tank Ember says. By Tsvetana Paraskova for Oilprice.comMore Top Reads From Oilprice.comVitol’s Venezuela Oil Windfall Traced to Trader’s Ties to JD VanceCrude Is Back at 80% in the Gulf, but Refined Products Are Stuck at 35%Nigeria Hits OPEC Oil Production Quota for Sixth Straight Month