The Asian Infrastructure Investment Bank (AIIB) and Turkey signed a $1.6 billion climate finance agreement on Wednesday, 11 November, at the COP31 UN climate conference in Antalya. The AIIB says it is its largest policy-based climate finance package so far.
The loan is meant to help Turkey launch emissions trading, cut carbon emissions across sectors and build national capacity to deal with climate change. The AIIB board approved the package on 22 October. It will support Turkey's climate law and its second nationally determined contribution (NDC). Turkey aims for net-zero emissions by 2053, with an interim target for 2035.
The package is split into two equal parts: a policy-based loan under the Turkey Climate Action Acceleration Programme, and additional finance through the bank's Food Security, Energy and Economic Resilience facility.
The programme rests on three pillars: sustainable finance, through an emissions trading system and a green finance framework; sector-by-sector decarbonisation, by updating the national emissions strategy and applying it in industry and the wider economy; and climate resilience, by strengthening local adaptation plans and cutting climate risk in water, ecosystems and public health. Turkey's Ministry of Treasury and Finance leads it, and the Ministry of Environment, Urbanisation and Climate Change oversees the technical side. It will reach all 81 provinces.
Konstantin Limitovskiy, the AIIB's head of public sector and global corporates, said the real emphasis at COP31 is on implementation and the bank is proud to support Turkey's climate reforms, calling it the largest climate loan facility in the AIIB's history.
The AIIB began operating in 2016, has $100 billion in capital and 111 approved members. It has approved $11.06 billion for 48 projects in Turkey. This year, up to 24 October, it provided $3.89 billion for nine projects there, about 95 per cent of it ($3.69 billion) as climate finance. The report is by Sarabangla's Ujjal Jisan.
Source: Sarabangla
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