Green investments and energy efficiency projects in Turkey receive a major boost as the European Development Bank announced that it was launching a large fund to provide the necessary financing.
The European Bank for Reconstruction and Development (EBRD) fund amounts to around 500 million euros (over $ 582.2 million) combined with co-financing from the Clean Technology Fund (CTF) of around 20 million euros, only for the Corporate Climate Governance program.
Funding will be provided in the form of loans or capital market instruments to partner financial institutions to finance the corporate, public and residential sectors as part of the bank’s Green Economy Transition (GET) approach. in Turkey, the lender said.
The project aims to support investments in the green economy, including energy efficiency, renewable energies and climate resilience measures.
Funds can also be loaned to eligible hardware and equipment vendors and producers covered by the Green Technology Selector platform for Turkey.
The loans will be supported by technical cooperation and incentive payments, as provided for under the Green Economy Financing Mechanism (GEFF) framework.
Concessional finance will also be available to help Turkish companies and financial sectors mainstream climate change into their approach to corporate governance.
The EBRD is one of the biggest investors in Turkey.
Turkey overtook Egypt to reclaim the top spot as the largest recipient of the lender’s investments in 2020.
It received 1.7 billion euros in investment last year alone through 33 projects. The EBRD has invested around € 13 billion in the country since 2009.