The European Bank for Reconstruction and Development (EBRD) announced its investment priorities in T眉rkiye over the next five years, focusing on intensifying green the transition, boosting T眉rkiye鈥檚 global competitiveness, and strengthening the country鈥檚 infrastructure and regional integration through 2029.
Over the last five years, the EBRD provided T眉rkiye with approximately 鈧�10 billion ($10.6 billion), including $2.6 billion last year alone, part of which supported the earthquake-stricken southeast. T眉rkiye鈥檚 southeast, near the Syrian border, was devastated by a magnitude 7.8 earthquake in February 2023.
The EBRD鈥檚 primary focus for the next five years is green transition and climate mitigation, with commitments to 鈥減roviding support for increased renewable energy integration, resource efficiency, decarbonization, the sustainability of municipal services, and boosting climate resilience.鈥�
In its second priority, the EBRD plans to foster T眉rkiye鈥檚 human capital, emphasizing gender equality and regional inclusion, with investments directed toward 鈥渁ccess to skills development, gender equality and inclusive economic participation,鈥� while 鈥渁ddressing regional disparities.鈥�
The bank noted that it will collaborate with donors and partners to reintegrate earthquake-affected regions into 鈥渢he broader Turkish economy with a focus on building back better and providing advisory to affected businesses.鈥�
Elisabetta Falcetti, EBRD managing director for T眉rkiye and the Caucasus, told Anadolu that country strategies serve as roadmaps for guiding private sector engagement and shaping policy dialogues.
鈥淭he previous strategy, covering 2019-2024, facilitated nearly 鈧�10 billion in investments; throughout this period, we focused on advancing the country鈥檚 green transition, promoting inclusive policies within the private sector, fostering T眉rkiye鈥檚 knowledge economy, and enhancing the resilience of its financial markets,鈥� said Falcetti.
鈥淒espite the challenges posed by the global pandemic, we made significant progress and maintained steadfast support for the private sector,鈥� she added.
Falcetti stressed that the EBRD is moving into the next phase of its investments in T眉rkiye, with strategic goals already established for the coming years.
She indicated that the EBRD is set to collaborate on projects across these priority areas, working closely with partners in both the private and public sectors.
鈥淪ince 2011, more than half of our investments have been directed towards projects with green components; over the past 15 years of our operations in T眉rkiye, we have dedicated over 鈧�2.5 billion to renewable energy projects,鈥� she said. 鈥淲e are already spearheading efforts in industrial decarbonization across key sectors, including cement, steel, aluminum, and fertilizers.鈥�
鈥淥ur low carbon pathways initiative provides guidance for private sector investments, significantly contributing to the decarbonization of the economy. Aligned with our low carbon pathways, we are on the verge of launching a dedicated country platform with T眉rkiye, focusing exclusively on industrial decarbonization 鈥� this platform aims to foster consensus among stakeholders, paving the way for coordinated action,鈥� she added.
Falcetti explained that prioritizing green transformation involves advancing projects that promote renewable energy integration, resource efficiency, and decarbonization.
鈥淪etting infrastructure and municipal services as an investment priority also aligns with our commitment to support reconstruction efforts in the earthquake-affected regions, ensuring they are greener and more resilient to climate risks,鈥� she said.
-鈥楿rgent need for Turkish private sector to adapt to evolving environmental regulations in global trade鈥�
Falcetti underscored that green standards and requirements will impact T眉rkiye鈥檚 trade relations, given that the EU accounts for half of T眉rkiye鈥檚 exports, and the Turkish private sector has an 鈥渦rgent need鈥� to adapt to 鈥渆volving environmental regulations in international trade.鈥�
鈥淭he projected costs of the EU鈥檚 Carbon Border Adjustment Mechanism (CBAM) for T眉rkiye could range from 鈧�138 million in 2027 to as much as 鈧�2.5 billion by 2032, particularly affecting energy-intensive sectors like iron, steel, and cement. This will likely raise production costs for private sector companies, posing a risk to their global competitiveness,鈥� she said.
鈥淲e believe that taking proactive measures will enhance the competitiveness of T眉rkiye鈥檚 industries in export markets, reduce dependence on costly imported fossil fuels, and unlock new market opportunities,鈥� she added.
Falcetti highlighted the EBRD鈥檚 belief that these efforts will bolster Turkish firms鈥� resilience against climate risks and improve their competitiveness in international trade.
鈥淲e are tackling competitiveness in a comprehensive approach, focusing not only on green ambitions but also on productivity and innovation 鈥� this makes digitalization a key strategy, particularly for Turkish small and medium businesses, which lag their European counterparts in digital capacities,鈥� she noted.
The EBRD estimates that the Turkish economy will grow by 2.7% this year and 3% next year. Since 2009, the bank has invested over $21.6 billion in T眉rkiye across 455 projects.
Reporting by Nuran Erkul in London
Writing by Emir Yildirim in Istanbul
Anadolu Agency
energy@aa.com.tr