The World Bank has approved a loan of 600 million euros (approximately $650 million) to help Turkish exporters reduce carbon emissions from their production processes, and thus boost the green transformation process, it said on Friday.
According to a statement from the bank, the approved 600-million-euro credit guarantee will be used to support the reduction of carbon emissions from production processes, aiming to maintain the competitiveness of Turkish exporters and their export markets.
Within this framework, the "Türkiye Green Export Project" will provide cost-effective and long-term financing to exporters investing in green and climate-resilient solutions, such as the development of machinery, equipment, heating and cooling systems, as well as waste reduction or recycling.
Due to the European Union's imposition of tariffs on carbon-intensive products from 2026 onward, reducing the carbon footprint of exporters producing emission-intensive products is of significant importance.
Humberto Lopez, the World Bank Group's country director for Türkiye, emphasized the importance of exporters' success for the Turkish economy and touched upon the green transformation process.
"Green transformation is one of the government's top priorities. The World Bank is contributing to the global transition to a low-carbon future," he said.
"At the same time, we are pleased to support these efforts that will also enhance companies and the country's competitiveness," he added.
Lopez also highlighted the critical importance of long-term financing for smooth transitions to the needed green economy investments and detailed the scope of the financing to be provided.
"The Türkiye Green Export Project will mobilize long-term commercial finance through up to 600 million euros in credit guarantees to Eximbank to find up to 1 billion euros of international private capital for approximately 10-year trade credits exclusively for supporting exporters' green transformation efforts," he explained.
"This financing will be more favorable in terms of tenure and cost compared to traditional market options, providing the much-needed impetus for exporters to reduce their carbon emissions and increase green exports," noted Lopez.
Gunhild Berg, a World Bank project team leader, underscored the project's significance in financing long-term, sustainable, and green economic growth, and said that the guarantee instrument also offers a "new approach to supporting exporters in adapting to climate-related transition risks and capitalizing on the increasing demand for green products and services globally."