The Asian Infrastructure Investment Bank (AIIB) has signed a $1.6bn climate policy financing package with Turkey, part of which will support the expansion of the country's nascent emissions trading system (ETS).
The AIIB and Turkey made the announcement today at the UN Cop 31 climate summit, which Turkey is hosting in Antalya.
The programme includes a target for at least 180 installations — which could comprise power, cement, iron and steel plants as well as facilities in the fertiliser and hydrogen sectors — reporting baseline emissions under the country's pilot ETS by April 2027. Turkey is moving towards implementing its domestic carbon market. Its domestic ETS is planned to include around 800 facilities and cover approximately 50pc of national emissions.
The financing is the AIIB's largest climate policy finance package and will support Turkey in implementing its climate law and its climate targets under its national climate plans — known as nationally determined contributions to the Paris climate agreement. Turkey aims to cut its greenhouse gas (GHG) emissions by 466mn t/CO2 equivalent (CO2e) when compared to a business as usual scenario, limiting GHG emissions to 643mn t/CO2e by 2035. It is also aiming to reach net zero emissions by 2053.
Turkey will need an estimated $68bn in additional climate investment by 2030, around half of which is expected to come from private sources, according to the AIIB.
The plan also aims to secure production licences for 1.8GW of wind and solar capacity by early 2027. Other targets for 2028 include helping 225,000 farmers switch to less water-intensive crops and designating 50,000 hectares of land as carbon sinks.
Turkey targets installed wind and solar capacity of 175GW by 2040.
The Turkish Cop 31 presidency has set out a headline pledge for the summit, for the electricity to reach a 35pc share of global final energy consumption by 2035 — dubbed 35 by 35.
