Industry
Investments for a greener economy in Turkey to be financed by the EBRD (Photo: EBRD)
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TURKEY / EU. The European Bank for Reconstruction and Development (EBRD) is participating in a €500m loan to Turkey under its new Green Economy Financing Facility (GEFF). It combines the EBRD's Clean Technology Fund (CTF) with €21.5m and €7m of technical assistance grants, mainly from the CTF and the Turkey-Berd Cooperation Fund.
This money will be given to several banks and leasing companies that will use the funds to help individuals (homeowners), companies, vendors and producers of green materials and products to invest in highly efficient green technologies.
The operation incorporates, for the first time in a GEFF, technical assistance to improve corporate climate governance. Local financial institutions will also benefit.
This money will be given to several banks and leasing companies that will use the funds to help individuals (homeowners), companies, vendors and producers of green materials and products to invest in highly efficient green technologies.
The operation incorporates, for the first time in a GEFF, technical assistance to improve corporate climate governance. Local financial institutions will also benefit.
Enabling Turkish companies to remain competitive in the EU
"Although Turkey has advanced regulatory and institutional frameworks for corporate governance in listed companies, there is still work to be done to implement best practices in corporate climate governance," the EBRD said. According to the European bank, "the lack of climate governance is already affecting companies' access to capital. Rating agencies regularly upgrade and downgrade companies' credit ratings based on data from suppliers and their own assessments.
The technical assistance will enable Turkish companies to remain competitive in key export markets, such as those of the European Union. It will support them in making green investments, setting up robust monitoring, reporting and verification systems to reduce business risks and annual costs arising from the EU's Border Carbon Adjustment Mechanism (BCAM). Its entry in 2023 could amount to hundreds of millions of euros.
The EBRD also intends to help Turkish institutions integrate climate information into their decision-making process. "The new mechanism will allow them to reassure the investment community about their management of climate-related risks and opportunities," the bank said.
As a signatory to the Paris Agreement, Turkey aims to achieve zero greenhouse gas emissions by 2053.
The technical assistance will enable Turkish companies to remain competitive in key export markets, such as those of the European Union. It will support them in making green investments, setting up robust monitoring, reporting and verification systems to reduce business risks and annual costs arising from the EU's Border Carbon Adjustment Mechanism (BCAM). Its entry in 2023 could amount to hundreds of millions of euros.
The EBRD also intends to help Turkish institutions integrate climate information into their decision-making process. "The new mechanism will allow them to reassure the investment community about their management of climate-related risks and opportunities," the bank said.
As a signatory to the Paris Agreement, Turkey aims to achieve zero greenhouse gas emissions by 2053.
