Türkiye launched on Monday a new decarbonization investment platform, marking a significant step toward achieving the country’s net-zero ambitions and strengthening the integration into European supply chains.

The Türkiye Industrial Decarbonization Investment Platform (TIDIP) was launched through a ceremony held in the capital Ankara, attended by top officials, the head of the delegation of EU to Ankara, and representatives of the European Bank for Reconstruction and Development (EBRD), the main backer of the initiative.

The TIDIP aims to deploy $5 billion in investments by 2030, resulting in the reduction of more than 20 million tons of carbon emissions annually, the EBRD said.

Recognizing the required scale of climate finance mobilization, the EBRD is partnering with the World Bank Group and International Finance Corporation (IFC) to help deliver on the TIDIP ambition, the bank said in a statement.

The platform, which the bank called the "world’s largest industrial decarbonization program to date," draws on the low-carbon pathway (LCP) concept.

Türkiye’s LCPs were developed by the EBRD and the Ministry of Industry and Technology. They will be implemented with the bank’s support to decarbonize the country’s steel, aluminum, cement and fertilizer sectors and create road maps spanning critical technologies, financing and policy measures to bring about sustainable decarbonization.

Speaking at the event, Industry and Technology Minister Mehmet Fatih Kacır said that with the programs they implemented as a ministry, they displayed an approach that addresses the investment and technology development needs of the industry, standing by industrialists in the green transformation journey.

In this context, Kacır stated that they have implemented the "Low Carbon Roadmaps Project" in cooperation with the EBRD, providing information on the framework of the initiative.

"In the project focusing on the steel, aluminum, fertilizer and cement sectors subject to the Carbon Border Adjustment Mechanism (CBAM), we determined the technologies, investment amounts and policy steps required by these sectors for green transformation and carbon emission reduction," he said.

"For our country to reach its net zero emission target by 2053, we foresee an investment need of $31 billion in the steel sector, $30 billion in the cement sector, $5 billion each in the aluminum and fertilizer sectors, and over $70 billion in total," the minister explained.

"Considering the nature and magnitude of the investment need, we see the key to our industry successfully achieving the green transformation as combining the efforts of Turkish industry and international financial institutions towards the net zero emission target and creating and implementing working models that benefit from the financial resources, expertise and knowledge of these institutions," he added.

'Turning point'

He also said they aimed to establish a comprehensive mechanism that provides 360-degree solutions for green transformation investments determined within the scope of Low Carbon Roadmaps and to rapidly strengthen this structure by including other international financial institutions and multilateral development banks in the platform in a short period.

Separately in a social media post, Kacır called the TIDIP an "important turning point for the green transformation of our industry," adding that in line with the 2053 net zero emissions target, they would continue to take determined steps to support the green transformation in every area of ​​industry and strengthen international collaborations.

"We took a new step to provide 5 billion euros in financing for decarbonization investments in priority sectors by 2030," he said on X.

EBRD President Odile Renaud-Basso, who attended the launch event, emphasized the importance of country-led approaches to advancing climate ambitions, saying: "The efforts of the private sector, financial institutions and multilateral development banks (MDBs) such as ours cannot fully succeed without robust national leadership. Uniting public and private entities, guided by leadership at the country level – accelerates progress and amplifies impact towards climate goals. We are proud to play a leading role in this platform and extend our gratitude to the Turkish authorities for their pivotal leadership in making it a reality."

Moreover, she noted that the program is the product of a shared vision for Türkiye's future, emphasizing that small and medium-sized enterprises (SMEs) form the backbone of national economies.

"We plan to reach approximately 300 SMEs and 1,000 suppliers in the next six years. Thanks to these efforts, SMEs will be able to act within global value and access very important financial resources," Basso said.

She added they aim to support SMEs in adopting greener operations and contributing to their digitalization while highlighting that the need for resilient supply chains was never as clear as it is today.

The EBRD president also stated that the program would provide job opportunities beyond economic recovery in the earthquake zone and bring economic activity to the region.

"This program is also open to growth. We want to spread it to more regions. We want to offer innovative solutions to all businesses," she said.

"This supply chain program will not only create an economic opportunity. It will go beyond that and provide meaningful and long-term changes in Türkiye's economy."

'Huge potential'

Meanwhile, the head of the European Union Delegation to Türkiye, Ambassador Thomas Hans Ossowski, shared the information that the EU is a co-financing partner for this future-oriented project.

Ossowski, who explained that they came together to solve the issues SMEs in Türkiye face, especially in their supply chains, noted that they aimed to ensure that these enterprises can integrate into current challenges and become a part of the transformation by strengthening some of their elements.

"We see how dedicated you are to a smart, sustainable and green future for both large industrialists and small businesses," the media quoted him as saying.

Stating that trade between Türkiye and the EU has reached great figures, Ossowski said: "We know that there is a huge potential. It is possible for this to increase even more."

"Türkiye is our fifth largest trade partner," he added.

He also mentioned that Turkish companies work in an integrated manner with the EU supply chains and noted that "sustainable and inclusive growth and fair transformation will continue to be key priorities of the EU."

"We will continue to support the competitiveness of the private sector in science, technology, innovation and the development of ecosystems in Türkiye," he concluded.