📋 Tender Overview
SUMMARY
STATUS
Approved
MEMBER
Türkiye
SECTOR
Multi-sector
E&S CATEGORY
FI
PROJECT NUMBER
000958
FINANCING
APPROVED FUNDING
USD200 million
FINANCING TYPE
Sovereign
TIMELINE
APPRAISAL REVIEW/FINAL REVIEW
April 2025
FINANCING APPROVAL
May 27, 2025
OBJECTIVE
To contribute to the Republic of Türkiye’s climate mitigation and adaptation goals in line with the Paris Climate Agreement and contribute its digital transformation.
DESCRIPTION
A 15-year sovereign-backed multi-sector facility to Türkiye Sinai Kalkinma Bankasi A.S. (TSKB) (the Phase 3 Facility) has been proposed to support Türkiye's climate mitigation and adaptation commitments under the Paris Climate Agreement (ratified in October 2021) while advancing the integration of climate and digital agendas as a strategic pathway for sustainable and resilient development. The approach highlights Türkiye’s drive to achieve green growth and digital innovation, establishing a model for emerging economies.
Aligned with its updated Nationally Determined Contributions (NDCs), Türkiye has set ambitious goals to reduce greenhouse gas emissions and embrace digital transformation across sectors. The digital transition plays a critical role in enhancing energy supply and demand through smart technology applications in industries, energy systems, and processes while also fostering innovation in green finance and sustainable practices. Investments in advanced technologies, such as artificial intelligence (AI), data acquisition, storage, and analytics, strengthen climate resilience by optimizing resource management and improving demand forecasting. Türkiye’s robust digital infrastructure initiatives, such as 5G deployment and smart energy solutions, serve to accelerate decarbonization and bolster the country’s global economic competitiveness.
Proceeds from the Phase 3 Facility will be on-lent as sub-loans to continue supporting eligible private sector entities (Sub-borrowers) to finance investments in climate mitigation, adaptation, and climate-related industries. In addition, the Phase 3 Facility also aims to contribute to the initiation of TSKB’s lending to digital infrastructure space within Türkiye’s energy, infrastructure, and other productive sectors (Sub-projects).
The Facility is thus designed to provide critical support in several key areas:
1) Climate Mitigation (CM): Investments will target renewable energy generation, such as wind and solar projects, as well as demand-side solutions that reduce energy consumption or waste in buildings, equipment, systems, and industrial processes. Additional emphasis will be placed on decarbonizing energy-intensive industries and productive sectors potentially affected by the EU’s Carbon Border Adjustment Mechanism (CBAM).
2) Climate Adaptation (CA): Funding will enhance the resilience of industrial processes, equipment, buildings, and infrastructure to climate impacts. The Facility will also explore nature-based solutions (NBS) l
