A climate finance loan of EUR 220 million has been provided to the Industrial Development Bank of Türkiye (TSKB) and the Investment Bank of Türkiye (TKYB) by the German Development Bank (KfW). The loan will be used to invest on projects in renewable energy, energy efficiency, energy storage, and electric vehicle technology in Türkiye.

According to the statements made by the banks, each banks will be provided a loan of EUR 100 million through the KfW. In addition to this fund, the International Climate Initiative (IKI) will provide a grant of EUR 10 million to TSKB and EUR 10 million from the German Government to TKYB.

This loan is the first transaction made within the framework of the memorandum of understanding signed in 2022 between the Republic of Turkey and development partners, including KfW, in order to serve the purposes of Turkey achieving its Sustainable Development Goals and fulfilling its international commitments under the Paris Climate Agreement.

The financing within the scope of the agreement signed between the Treasury and the Ministry of Finance on April 6, 2023, will be made available through the on-lending method of foreign debt. Banks will use this resource to finance renewable energy, geothermal, energy efficiency, energy storage, and electric vehicle technology investments throughout Türkiye.

TSKB had also previously signed a USD 220 million loan from the Japan Bank for International Cooperation (JICA). More recently, TSKB announced that they will provide a USD 55 million loan for a planned geothermal power plant by HEZ Energy in the town of Söke in Aydin, Türkiye.