Turkey has secured a $1.6 billion financing agreement from the Asian Infrastructure Investment Bank (AIIB) to support policy reforms and attract private investment for its climate targets.
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Turkey → secure → targets
The funding will help Turkey address an estimated $68 billion investment requirement for climate action by 2030, with around half of the amount expected to come from private sources, according to the AIIB.
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half → help → AIIB
The agreement was announced on Thursday, the fourth day of the two-week UN climate conference in Antalya.
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agreement → announce → Antalya
The programme covers fiscal policy, financial regulation and sectoral planning.
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programme → cover → policy
It is intended to support the implementation of Turkey's Climate Law and its emissions reduction strategy, which includes an interim target for 2035 and a commitment to reach net-zero emissions by 2053.
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which → intend → 2053
The financing will be directed towards expanding sustainable finance, reducing emissions across industries and strengthening the country's ability to deal with climate-related risks.
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financing → direct → risks
Turkey, which has a population of around 86 million, faces growing exposure to droughts, floods and wildfires as global temperatures rise.
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temperatures → have → droughts
Konstantin Limitovskiy, AIIB's chief investment officer, said the agreement was the bank's largest climate policy-based financing package to date.
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agreement → say → date
The deal comes as the bank expands its climate-related lending.
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bank → come → lending
Its total climate financing reached a record $7.47 billion in 2025, according to the statement.
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financing → reach → statement
Support for Turkey's emissions trading system
A portion of the funding will help Turkey develop its emissions trading system, which is still in its early stages.
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which → help → stages
Under the proposed mechanism, companies operating in high-emission industries will receive allowances that can be traded.
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that → propose → allowances
The system could also have implications for Turkish exporters supplying goods such as steel and cement to the European Union.
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system → have → Union
Under the EU's carbon border levy, carbon costs paid in Turkey can be recognised when calculating charges on emissions embedded in certain imported products.
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costs → pay → products
A domestic carbon pricing mechanism could therefore help exporters account for these costs.
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exporters → help → costs
The programme has set several targets for the coming years.
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programme → set → years
At least 180 industrial facilities are expected to report their baseline emissions under the trading scheme by April 2027.
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facilities → expect → April
The plan also aims to secure production licences for 1,800 megawatts of wind and solar power capacity by early 2027.
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plan → aim → 2027
Agriculture and land management are also included in the reforms.
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Agriculture → include → reforms
The programme aims to help 225,000 farmers in water-stressed areas shift to crops that require less water by 2028.
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that → aim → 2028
It also targets the designation of 50,000 hectares of land as carbon sinks by the same year, allowing these areas to absorb carbon dioxide from the atmosphere.
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areas → target → atmosphere
Climate risks drive policy reforms
Turkey is facing mounting pressure from water shortages, prolonged drought, extreme heat, wildfires and flooding in urban areas.
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Turkey → drive → areas
The reform programme is designed to strengthen planning and risk management across sectors affected by these threats, including water resources, ecosystems and public health.
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programme → design → resources