By Nuran Erkul
LONDON (AA) – The European Bank for Reconstruction and Development (EBRD) announced its investment priorities in Türkiye over the next five years, focusing on intensifying green the transition, boosting Türkiye’s global competitiveness, and strengthening the country’s infrastructure and regional integration through 2029.
Over the last five years, the EBRD provided Türkiye with approximately €10 billion ($10.6 billion), including $2.6 billion last year alone, part of which supported the earthquake-stricken southeast. Türkiye’s southeast, near the Syrian border, was devastated by a magnitude 7.8 earthquake in February 2023.
The EBRD’s primary focus for the next five years is green transition and climate mitigation, with commitments to “providing support for increased renewable energy integration, resource efficiency, decarbonization, the sustainability of municipal services, and boosting climate resilience.”
In its second priority, the EBRD plans to foster Türkiye’s human capital, emphasizing gender equality and regional inclusion, with investments directed toward “access to skills development, gender equality and inclusive economic participation,” while “addressing regional disparities.”
The bank noted that it will collaborate with donors and partners to reintegrate earthquake-affected regions into “the broader Turkish economy with a focus on building back better and providing advisory to affected businesses.”
Elisabetta Falcetti, EBRD managing director for Türkiye and the Caucasus, told Anadolu that country strategies serve as roadmaps for guiding private sector engagement and shaping policy dialogues.
“The previous strategy, covering 2019-2024, facilitated nearly €10 billion in investments; throughout this period, we focused on advancing the country’s green transition, promoting inclusive policies within the private sector, fostering Türkiye’s knowledge economy, and enhancing the resilience of its financial markets,” said Falcetti.
“Despite the challenges posed by the global pandemic, we made significant progress and maintained steadfast support for the private sector,” she added.
Falcetti stressed that the EBRD is moving into the next phase of its investments in Türkiye, with strategic goals already established for the coming years.
She indicated that the EBRD is set to collaborate on projects across these priority areas, working closely with partners in both the private and public sectors.
“Since 2011, more than half of our investments have been directed towards projects with green components; over the past 15 years of our operations in Türkiye, we have dedicated over €2.5 billion to renewable energy projects,” she said. “We are already spearheading efforts in industrial decarbonization across key sectors, including cement, steel, aluminum, and fertilizers.”
“Our low carbon pathways initiative provides guidance for private sector investments, significantly contributing to the decarbonization of the economy. Aligned with our low carbon pathways, we are on the verge of launching a dedicated country platform with Türkiye, focusing exclusively on industrial decarbonization – this platform aims to foster consensus among stakeholders, paving the way for coordinated action,” she added.
Falcetti explained that prioritizing green transformation involves advancing projects that promote renewable energy integration, resource efficiency, and decarbonization.
“Setting infrastructure and municipal services as an investment priority also aligns with our commitment to support reconstruction efforts in the earthquake-affected regions, ensuring they are greener and more resilient to climate risks,” she said.
-‘Urgent need for Turkish private sector to adapt to evolving environmental regulations in global trade’
Falcetti underscored that green standards and requirements will impact Türkiye’s trade relations, given that the EU accounts for half of Türkiye’s exports, and the Turkish private sector has an “urgent need” to adapt to “evolving environmental regulations in international trade.”
“The projected costs of the EU’s Carbon Border Adjustment Mechanism (CBAM) for Türkiye could range from €138 million in 2027 to as much as €2.5 billion by 2032, particularly affecting energy-intensive sectors like iron, steel, and cement. This will likely raise production costs for private sector companies, posing a risk to their global competitiveness,” she said.
“We believe that taking proactive measures will enhance the competitiveness of Türkiye’s industries in export markets, reduce dependence on costly imported fossil fuels, and unlock new market opportunities,” she added.
Falcetti highlighted the EBRD’s belief that these efforts will bolster Turkish firms’ resilience against climate risks and improve their competitiveness in international trade.
“We are tackling competitiveness in a comprehensive approach, focusing not only on green ambitions but also on productivity and innovation – this makes digitalization a key strategy, particularly for Turkish small and medium businesses, which lag their European counterparts in digital capacities,” she noted.
The EBRD estimates that the Turkish economy will grow by 2.7% this year and 3% next year. Since 2009, the bank has invested over $21.6 billion in Türkiye across 455 projects.
*Writing by Emir Yildirim in Istanbul