What happened
Climate Investment Funds (CIF) has approved $250 million in catalytic finance for an industrial decarbonisation programme in Türkiye. The financing package is intended to unlock $2.8 billion of investment overall.
Multilateral development bank partners are expected to provide $1.93 billion of the total, while private investors and other sources are expected to supply a further $870 million. The Asian Development Bank, European Bank for Reconstruction and Development, and World Bank Group, including the International Finance Corporation, are due to channel CIF support through the Türkiye Industrial Decarbonization Investment Platform.
Eligible areas include renewable power, energy efficiency, green hydrogen, carbon capture, utilisation and storage, circular-economy projects, climate technologies and green-market development.
Why it matters
The programme directs concessional funding towards industrial technologies that can involve high initial costs and risks that commercial investors may struggle to assess. CIF expects its capital under the plan to attract more than $11 of investment for each dollar committed.
For Turkish manufacturers, the initiative could widen access to financing for lower-emissions production. It gives particular attention to small and medium-sized enterprises and women-led businesses. CIF estimates that 378 businesses could obtain better access to green finance by 2035.
The plan also links industrial investment to Türkiye’s climate policy and emissions-pricing direction. It was developed by the Ministry of Treasury and Finance and the Ministry of Industry and Technology, and is aligned with the country’s 2025 Climate Law and pilot national emissions trading system.
Background
CIF projects that the programme could avoid or reduce 39 million tonnes of carbon dioxide equivalent annually by 2035, supporting Türkiye’s 2053 net-zero objective. It includes measures on a just transition, gender equality and social inclusion for workers and communities affected by industrial change.
Türkiye is one of seven initial countries selected for CIF’s Industry Decarbonization investment programme. Brazil and Mexico have also received endorsements of $250 million each.
What's next
Implementation is planned through the multilateral development bank partners and the Türkiye Industrial Decarbonization Investment Platform. The platform has a wider objective of mobilising about $5.77 billion for industrial decarbonisation by 2030, while the CIF-backed programme’s emissions and business-finance targets are set for 2035.
