Turkey Secures $5.1bn in Loans to Drive Green Transition at Cop31

Turkey has finalized ten loan agreements totaling $5.1 billion with major multilateral development banks. The deals were signed on Thursday during the United Nations climate conference, Cop31, held in Antalya. The primary objective of these financial instruments is to accelerate the country's transition toward a greener and more sustainable economy.

Mehmet Simsek, the Turkish Treasury and Finance Minister, emphasized the necessity of international cooperation during the signing ceremony. He noted that domestic budgets alone are insufficient to cover the massive investment requirements of such a structural transformation. Simsek stated that support from global financial institutions is therefore critical for Ankara to achieve its climate goals.

The agreements involve four key partners: the Asian Development Bank, the Asian Infrastructure Investment Bank, the World Bank, and the Islamic Development Bank. Simsek highlighted that the government had thoroughly prepared specific projects to ensure that the secured financing could be effectively deployed. He added that these initiatives are expected to generate new employment opportunities and strengthen the broader Turkish economy.

Since 2023, Turkey has secured approximately $50 billion in external financing from various development partners. The current round of agreements marks a significant continuation of that trend. Notably, Turkey signed its first loan agreement with the Asian Development Bank in November 2025, establishing a foundation for the current increased cooperation.

With the new deals, the Asian Development Bank's total financing for Turkey is set to reach $3.1 billion within the next year. Masato Kanda, the president of the ADB, explained that these funds will support the construction of disaster-resilient hospitals and improve healthcare services. The bank also aims to help train the next generation of medical professionals through these investments.

The ADB agreements will also expand long-term financing options for small businesses. This support will specifically target less-developed provinces, areas affected by recent earthquakes, and female entrepreneurs. Kanda noted that longer repayment periods will allow businesses to invest, rebuild, and create jobs, aligning with the Cop31 focus on building resilient cities.

The Asian Infrastructure Investment Bank has committed $1.6 billion for the Turkey Climate Action Acceleration Program. This funding is designed to support the implementation of the country's new climate regulations. Additionally, the bank will provide $300 million through Turk Eximbank. Zou Jiayi, the AIIB president, stated that this loan will help Turkish businesses withstand economic shocks while supporting the green transition.

Ajay Banga, president of the World Bank Group, announced that three agreements worth a total of $1.5 billion were signed on the same day. These funds will support development in the sectors of cities, agriculture, and industry. This amount does not include additional private-sector investment that the World Bank hopes to mobilize in the future.

In a separate but related development, Turkish Energy Minister Alparslan Bayraktar announced a preliminary deal worth $15 billion with China's National Energy Administration. This agreement also took place on the sidelines of Cop31 and focuses on renewable energy investments in Turkey.

Bayraktar explained that the $15 billion investment aims to implement 7,000 megawatts of solar and wind power capacity. The project also includes new energy storage systems and 4,000 megawatts of electricity transmission infrastructure. The memorandum of understanding will facilitate technology transfer, enabling the domestic production of wind turbine equipment and boosting Turkey's local industry.