Type to search

World Bank Approves $450 Million for Greener Industrial Sector in Türkiye

World Bank Approves $450 Million for Greener Industrial Sector in Türkiye

Listen to this story:

The World Bank Board approved $450 million in financing for the Türkiye Green Industry Project, to support an efficient green transformation for industrial firms in Türkiye.

The operation will direct $250 million to the Small and Medium Enterprises (SMEs) Development Organization of Türkiye (KOSGEB), to help SMEs improve their resource performance and reduce carbon emissions, and $175 million to the Scientific and Technological Research Council of Türkiye (TÜBITAK), to foster green innovation activities by Turkish enterprises, research institutions and universities. The remaining $25 million will go to the Government of Türkiye to coordinate project activities and lay the institutional foundations for the implementation of the national green industrial transition agenda.

The Turkish manufacturing industry has recorded significant growth in recent years, accounting for more than 90% of all Turkish exports, of which over 40% go to the European Union (EU). Yet, Turkish manufacturing is more carbon-intensive than the EU average and, under the Carbon Border Adjustment Mechanism (CBAM), the EU will be adopting more stringent carbon standards for manufactured goods. Türkiye is responding to this by trying to adapt its manufacturing sectors to the new standards.

“The transition to a greener economy is not only an environmental imperative but also a tremendous economic opportunity for Türkiye. This project will enable industrial firms to harness the power of renewable energy, implement energy-efficient technologies, and adopt circular economy principles, paving the way for a more sustainable and prosperous future,” said Humberto Lopez, World Bank Country Director for Türkiye 

See related article: World Bank Approves $50 Million for Air Quality Improvements in Bosnia and Herzegovina

Türkiye’s greenhouse gas emissions have increased substantially over the past two decades and the manufacturing sector is a significant contributor to this increase. This project aims to drive the transition of industrial firms towards a low-carbon, sustainable and resilient future, while also promoting economic growth and job creation.

It will target thousands of industrial firms to reduce carbon emissions by investing in solar energy for their own consumption, developing and implementing green transition plans to reduce carbon emissions and improve their resource efficiency, with a focus on energy, water, and waste management efficiency.

It will also support industrial firms in their efforts to create, adopt and adaptation of new, or significantly improved, products (goods and services), and business processes, which will improve sustainable development and lead to more efficient and responsible use of natural resources and positive impacts on the environment, such as energy savings, pollution reduction or prevention, waste recycling, and resource efficiency.

“The Türkiye Green Industry Project recognizes the vital role of SMEs in Türkiye’s economy and their potential to drive sustainable development. By investing in their green transformation, SMEs will be better positioned for new avenues for growth in a global market that is becoming increasingly environmentally conscious,” said Stefka Slavova, one of the World Bank Project Team Leaders.

The World Bank is an important and reliable partner for Türkiye in its efforts towards a green transition, to protect people against the impacts of climate change and to invest in a green economy for the future. Other World Bank projects implemented in recent years include the Seismic Resilience and Energy Efficiency in Public Buildings Project; the Small and Medium Enterprises Energy Efficiency Project; and the Energy Efficiency in Public Buildings Project, among others.

Related Articles