Chapter 6 | PROJECTS
By channeling credit to these areas (through TSKB), the loan directly supports Türkiye’s net-zero 2053 pathway and its national climate strategies. This purpose aligns with the con- cept of a climate finance facility as the project will facilitate financing for climate-related projects that might otherwise struggle to find adequate investment. In summary, the loan’s purpose is to accelerate Türkiye’s low-carbon transition and climate adaptation by funding tangible projects in renewable energy, energy savings, sustainable industry and resilience, marrying development finance with climate action objec- tives. This aligns with the “Climate Finance Facility” project’s design, ensuring the loan is used exclusively for climate mit- igation and adaptation.
mobilization effect, the facility not only achieves its direct mitigation and adaptation goals but also promotes greater private sector participation in Türkiye’s green transition.
Taken together, these outcomes will play a critical role in supporting Türkiye’s efforts to meet its NDCs under the Paris Agreement and advance its national development strategy. They also align closely with the objectives of the OPEC Fund’s Climate Action Plan, demonstrating clear and ac- countable results in renewable energy deployment, energy efficiency, emissions reduction and financial mobilization for climate resilience.
Assessment according to the Joint MDB Methodology for Tracking Climate Finance
Expected Outcomes
The “Climate Finance Facility” project is expected to deliver tangible, measurable outcomes that contribute significantly to Türkiye’s transition to a low-carbon and climate-resilient economy. A key anticipated result is the installation of ap- proximately 60 MW of new renewable energy capacity. The investment is projected to generate around 120,000 MWh of clean electricity annually, directly supporting the country’s ambition to expand its share of renewable energy in the national energy mix. As a result, the project is expected to avoid approximately 80,000 tons of CO 2 -equivalent emis- sions per year, thereby reducing the environmental footprint of Türkiye’s energy sector. In addition to renewable energy investments, the facility will support at least two energy efficiency projects, focusing on improving energy performance in buildings and indus- trial processes. These interventions are expected to lead to annual electricity savings of approximately 250 GWh, sig- nificantly enhancing energy efficiency across targeted sec- tors. In turn, these efficiency gains are anticipated to result in an additional reduction of approximately 100,000 tons of CO 2 -equivalent emissions per year, demonstrating the pro- ject’s dual impact on both the supply and demand sides of the energy equation. Moreover, the project is designed to act as a catalyst for broader climate finance mobilization. It is expected to lev- erage approximately ¤50 million in additional private sector co-financing, thereby expanding the pool of resources avail- able for climate-related investments and strengthening the sustainability of the financing framework. Through this
The OPEC Fund’s “Climate Finance Facility” project in Türkiye supports both climate change mitigation and adaptation ob- jectives in alignment with internationally recognized climate finance tracking methodologies, including the OECD Devel- opment Assistance Committee (DAC) Rio Markers and the MDB’s joint approach.
The ¤50 million (US$51.9 million) credit line is based on the stated eligibility criteria and investment focus, as per the fol- lowing allocations:
Investment Category
Allocation (¤ million)
Climate Finance Classification
Climate Mitigation
≥ 35.0
100% mitigation
Climate Adaptation
≥ 5.0
100% adaptation
Climate Industries
≥ 5.0
50% mitigation / 50% adaptation
Circular Economy Initiatives
~ 5.0
100% mitigation
Mitigation finance under the “Climate Finance Facility” pro- ject supports a range of activities that are included in the list of internationally recognized mitigation-eligible technol- ogies. These include: • Investments in renewable energy such as wind, solar, bi- omass, biogas, decentralized solar (e.g., rooftop photo- voltaic systems), hybrid renewable energy solutions and manufacturing of renewable energy components.
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