The Asian Infrastructure Investment Bank (AIIB) and the Republic of Türkiye have signed a $1.6 billion financing agreement to support institutional and policy reforms aimed at accelerating Türkiye’s national climate commitments.
Executed during the COP31 UN Climate Change Conference in Antalya, the transaction represents AIIB’s largest climate-focused policy-based financing package to date. The capital will back the implementation of Türkiye’s national Climate Law alongside its Second Nationally Determined Contribution, which establishes a 2035 emissions reduction target on the country’s pathway to achieving net-zero emissions by 2053.
The package blends equal tranches from a Climate-Focused Policy-Based Financing loan for the Türkiye Climate Action Acceleration Program (TCAAP) and supplemental financing via AIIB’s Energy, Food Security and Economic Resilience Facility (TCAAP-SF).
The reform agenda is structured across three operational pillars. The sustainable finance pillar focuses on operationalising Türkiye’s domestic emissions trading system and national green finance framework. The sectoral decarbonisation pillar translates national targets into industry-specific mandates through an updated national mitigation strategy. The climate resilience pillar strengthens subnational adaptation planning and risk management across water, ecosystems, and public health infrastructure.
The Ministry of Treasury and Finance serves as the executing agency, coordinating delivery alongside the Ministry of Environment, Urbanisation and Climate Change and its Directorate of Climate Change. Implementation spans banking, capital markets, energy regulators, civil aviation, forestry authorities, and local climate governance bodies across all 81 provinces.
Konstantin Limitovskiy, Chief Investment Officer 2 at AIIB, stated that the landmark policy-based financing package directly supports COP31’s focus on implementation by advancing structural climate reforms across fiscal policy, financial regulation, and provincial planning.
Türkiye is a founding member of the multilateral lender and its second-largest market by cumulative approved capital. As of 24 October 2026, AIIB has approved $11.06 billion across 48 operations in Türkiye, including $3.89 billion approved across nine operations in 2026 alone—of which $3.69 billion, or 94.9 per cent, is classified as climate finance. Globally, AIIB’s climate financing reached a record $7.47 billion in 2025, representing 71 per cent of total approved lending.
