EBRD Expands Green Financing in Türkiye with €25m Boost
As Türkiye pushes toward its ambitious 2053 net-zero target, the European Bank for Reconstruction and Development (EBRD) is stepping in once again, this time with a €25 million loan to QNB Finansleasing.
This loan, granted under the Türkiye Green Economy Financing Facility II (GEFF II), is aimed at advancing green finance opportunities in the country, supporting sub-borrowers in implementing essential energy-efficiency, renewable-energy, and climate-resilience projects.
But how exactly does this new financing fit into Türkiye’s larger climate ambitions, and what role does QNB Finansleasing play in the green transition? Let’s dive into the details.
Türkiye’s Race to Net Zero
Türkiye’s goal of achieving net zero by 2053 is no small feat. According to estimates, the country will need approximately US$10 billion in financing each year until 2030 to make this vision a reality. This staggering figure underscores the necessity of developing sustainable financial pathways that support energy-efficient and renewable projects.
With rising global temperatures, Türkiye, like many other nations, is facing mounting pressure to reduce its carbon footprint. Transitioning to a green economy requires bold investments in energy efficiency, clean energy, and climate resilience, not only to curb emissions but also to foster economic growth in a sustainable manner.
This latest €25 million loan from the EBRD to QNB Finansleasing is a critical component in this process. By on-lending to businesses and sub-borrowers across a range of green investments, the funds will directly contribute to Türkiye’s overarching climate strategy.
The Role of QNB Finansleasing in Green Finance
Established in 1990, QNB Finansleasing has long been a significant player in Türkiye’s leasing sector. Known for its customer-oriented approach and innovative financial models, the company has been a trusted partner of the EBRD for years, particularly when it comes to advancing green initiatives.
Speaking about the loan, Osman Taş, General Manager of QNB Finansleasing, shared his excitement for the new partnership phase: “At QNB Finansleasing, we integrate sustainability into the core of our business operations, enabling our clients to shape their investments with a forward-thinking perspective. To date, we have financed nearly 500 MW of renewable-energy projects and have strongly supported initiatives in energy efficiency and water management,” Taş remarked. “These investments not only address current energy needs but also lay the groundwork for our objective of creating a more liveable world for future generations.”
This latest loan agreement reaffirms QNB Finansleasing’s dedication to the green transition. The company has already made significant strides in financing renewable energy and energy-efficient projects, and the new funds will only further bolster these efforts.
EBRD’s Commitment to Türkiye’s Green Transition
The EBRD has been a cornerstone of Türkiye’s financial landscape since 2009, investing over €20 billion through more than 450 projects. Most of these projects have been in the private sector, with a notable focus on sustainability and climate-resilient initiatives.
Oksana Yavorskaya, the EBRD’s Deputy Head of Türkiye, praised the partnership, saying: “The demand for green financing in Türkiye is critical, and leasing companies play a pivotal role in expanding the deployment of green initiatives. The EBRD is dedicated to accelerating Türkiye’s green transition and partnering with financial institutions to provide the tools essential to achieving the country’s climate goals.”
The EBRD’s involvement in the GEFF II programme is a testament to its ongoing support of green investments in Türkiye. Building on the success of the first GEFF phase, the second iteration aims to further expand the deployment of green finance, driving forward Türkiye’s climate ambitions and fostering a culture of sustainability within its financial institutions.
What is the GEFF II Programme?
The Türkiye Green Economy Financing Facility (GEFF II) is an initiative designed to help local financial institutions provide financing for green investments. This includes everything from energy-efficiency upgrades and renewable energy projects to broader climate resilience measures. Essentially, it’s a financial bridge, enabling smaller businesses and sub-borrowers to access the funds needed to implement these vital projects.
For Türkiye, the GEFF II programme represents a key tool in its climate strategy. By funnelling funds through local institutions like QNB Finansleasing, the EBRD is able to facilitate investments at the ground level, ensuring that green finance reaches the businesses and communities that need it most.
In addition to financing, the GEFF II programme also provides technical assistance to borrowers, helping them identify and implement the most effective green solutions for their needs. This is crucial for ensuring that the funds are used as efficiently as possible, maximising their impact on Türkiye’s green economy.
How Will the Loan be Used?
The €25 million loan to QNB Finansleasing is earmarked for on-lending to sub-borrowers implementing green economy investments. These sub-borrowers could include a range of entities, from SMEs looking to improve energy efficiency in their operations to larger companies investing in renewable energy infrastructure.
Specifically, the loan proceeds will be directed towards:
- Energy-efficiency projects – such as building upgrades, energy-saving technologies, and process improvements aimed at reducing overall energy consumption.
- Renewable-energy investments – including solar, wind, and other clean energy projects designed to decrease reliance on fossil fuels.
- Climate-resilience measures – helping businesses prepare for the impacts of climate change, whether through flood protection, water management systems, or other adaptive technologies.
With this broad scope, the loan will play a key role in helping Türkiye’s economy transition towards a more sustainable, low-carbon future.
Driving Forward Türkiye’s Green Economy
Türkiye’s commitment to a greener future is evident in its long-term climate goals, but achieving these targets requires significant support from financial institutions, both domestic and international. The EBRD, with its deep ties to the country and its strong focus on sustainable finance, is well-positioned to help drive this transition.
By partnering with QNB Finansleasing and other local financial institutions, the EBRD is ensuring that green finance becomes more accessible across Türkiye’s economy, from SMEs to larger industrial players. This will not only help the country meet its net-zero target but also create new opportunities for economic growth and job creation in the green sector.
A Bright Future for Green Finance in Türkiye
As Türkiye continues its journey towards a greener economy, partnerships like this one between the EBRD and QNB Finansleasing are becoming increasingly important. By providing the financing and technical expertise needed to implement green investments, these institutions are helping to lay the foundation for a more sustainable, climate-resilient future.
The success of the GEFF II programme and other similar initiatives will be critical in determining whether Türkiye can meet its ambitious climate goals. But with the EBRD and QNB Finansleasing leading the way, there’s every reason to believe that the country is on the right path.
