Asian Infrastructure Investment Bank signs record climate deal with Turkey

The Asian Infrastructure Investment Bank agreed to a record US$1.6 billion financing deal with Turkey to support national climate policy reforms.

The agreement was announced during the COP31 climate conference in Antalya, Turkey, where the country is hosting the international gathering. The funding supports the implementation of Turkey’s Climate Law and its goal to reach net zero emissions by 2053.

The bank stated that Turkey requires approximately US$68 billion in additional climate investment by 2030 to meet its targets, with about half of that total expected to come from private sources. The deal covers fiscal policy, financial regulation, and sectoral planning to attract the necessary investment. Specific projects under the agreement include developing a domestic emissions trading scheme to help exporters avoid carbon levies from the European Union.

The plan also aims to secure production licenses for 1,800 megawatts of wind and solar capacity by early 2027. Additionally, the funding will assist 225,000 farmers in water-stressed areas to switch to crops that require less water and help designate 50,000 hectares of land as carbon sinks by 2028.