Key facts
- Turkey will access a Climate-Focused Policy-Based Financing loan for the Türkiye Climate Action Acceleration Program, with supplemental financing in equal amounts.
- The package is AIIB's largest climate-focused policy-based financing to date and supports Turkey's Climate Law and Second Nationally Determined Contribution.
- Turkey's Second Nationally Determined Contribution sets a 2035 emissions target on a pathway to net zero by 2053.
- Turkey's new energy plan to 2040 targets $500 billion in energy infrastructure investment, including a fourfold rise in solar and wind capacity to 175 GW.
- Energy Minister Alparslan Bayraktar said the plan targets 20 million electric vehicles by 2040 and $240 billion in efficiency savings.
Turkey and the Asian Infrastructure Investment Bank agreed on November 12 to a $1.6 billion climate financing package, the largest climate-focused deal the Asian bank has made to date. The agreement 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 loan for the Türkiye Climate Action Acceleration Program, with supplemental financing under AIIB's Energy, Food Security and Economic Resilience Facility in equal amounts. The package is 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 has unveiled a new energy plan to 2040 targeting $500 billion in energy infrastructure investment. The plan looks to cut the import bill and strengthen domestic resources, including gas in the Black Sea and a fourfold increase in installed solar and wind capacity to 175 gigawatts by 2040, raising renewables to 77% of installed electricity-generation capacity. Energy and Natural Resources Minister Alparslan Bayraktar said last week that Turkey aims to boost energy independence. The plan also targets 20 million electric vehicles by 2040, while efficiency policies are expected to bring $240 billion in savings, Bayraktar said. Energy think tank Ember says Turkey ranked fourth in Europe in EV sales last year, with 190,000 fully electric vehicles sold, or 17% of total new car sales.