Türkiye secured $5.1 billion in development financing agreements at COP31, directing funds toward climate reforms, disaster resilience and smaller businesses as Ankara seeks long-term investment beyond public budgets.
Treasury and Finance Minister Mehmet Simsek said Thursday that 10 agreements were signed in Antalya with four development lenders: the World Bank, the Islamic Development Bank (IsDB), the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB).
AIIB President Zou Jiayi announced $1.9 billion in financing, including $1.6 billion for a sovereign climate program and $300 million through Turk Eximbank. The climate component is designed to support Türkiye’s Climate Law and its Second Nationally Determined Contribution (NDC 3.0), which sets the country’s 2035 emissions target.
AIIB said the program will cover emissions trading and green-finance rules, industrial decarbonization and local planning for climate risks. Its project materials cite reliance on fossil-fuel imports and exposure to the European Union’s Carbon Border Adjustment Mechanism as pressures behind the reforms.
ADB President Masato Kanda outlined €620 million ($687 million) for disaster-resilient hospitals, health services and medical training. A separate $500 million facility through VakifBank will provide longer-term loans to small businesses, focusing on less-developed and earthquake-affected provinces and women entrepreneurs.
World Bank Group President Ajay Banga said three agreements worth $1.5 billion will support cities, agriculture and industry. The total excludes additional private investment the group is seeking to mobilize.
Simsek said development partners have provided Türkiye with about $50 billion in external financing since 2023, supporting earthquake recovery, railways, renewable energy, exporters and small firms. He said government budgets cannot meet the transition’s financing needs alone, and that economic policies and structural reforms are needed to attract long-term investment.
The projects target hospitals, small businesses, women entrepreneurs and earthquake-affected areas. AIIB’s environmental and social assessment identifies potential job displacement in carbon-intensive sectors and uneven access to green finance for small and medium-sized enterprises. COP31 is scheduled to end Friday, Nov. 20, in Antalya.
