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The Asian Infrastructure Investment Bank (AIIB) has signed a $1.6 billion climate financing agreement with Türkiye to support the country’s efforts to reduce carbon emissions, introduce emissions trading and strengthen climate resilience.
The loan agreement was signed on Wednesday (November 11) on the sidelines of the ongoing COP31 climate conference in Antalya, Türkiye.
The AIIB described the package as the largest climate policy-based financing facility in its history. It aims to support Türkiye’s climate priorities, implement its climate law and help achieve its second Nationally Determined Contribution (NDC) targets.
The country has set a long-term target of achieving net-zero carbon emissions by 2053, with an interim target for 2035.
The AIIB’s board of directors approved the financing package on October 22.
The $1.6 billion package is divided equally into two components: policy-based lending under the Türkiye Climate Action Acceleration Programme (TCAAP) and additional financing through the Food Security, Energy and Economic Resilience Facility.
Konstantin Limitovskiy, AIIB vice president for investment operations and global corporate, said the focus of COP31 was on implementation.
“At this critical juncture, we are proud to support Türkiye’s transformative climate reforms. This is the largest climate lending facility in AIIB’s history,” he said.
The programme is built around three key pillars: establishing an emissions trading system and implementing a green financing framework; reducing carbon emissions across industries and economic sectors through updated national strategies; and strengthening climate resilience through local adaptation plans.
The programme will also seek to reduce climate-related risks in areas such as water resources, ecosystems and public health.
Türkiye’s Ministry of Treasury and Finance will serve as the main implementing agency, while the Ministry of Environment, Urbanisation and Climate Change and its Directorate of Climate Change will oversee technical aspects.
Several other government agencies, including those responsible for banking, capital markets, energy, civil aviation and forestry, will also participate in the programme.
The initiative will extend climate governance and related activities across all 81 provinces of Türkiye.
Established in 2016 with an authorised capital of $100 billion, the AIIB currently has 111 approved members.
Its engagement in Türkiye is substantial. The bank has so far approved $11.06 billion in financing for 48 projects in the country.
In 2026 alone, up to October 24, the AIIB provided $3.89 billion for nine projects in Türkiye, of which approximately 95 per cent, or $3.69 billion, was allocated to climate financing.
