Turkey sets up green fund with $155m World Bank loan

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Turkey has set up its first green venture capital fund to support its target of net zero by 2053.

The Industrial Development Bank of Turkey (TSKB) has secured a $155 million loan from the World Bank for the Turkey Green Fund (TGF).

The financing was secured under the Turkish ministry of treasury and finance guarantee, TSKB said in a statement.

The fund will provide green financing to businesses, promote investment in green technologies and diversify the financial sector. 

“Our goal is to activate private sector capital through this fund, offering capital investment opportunities to companies,” TSKB chief executive Murat Bilgiç said.

The fund aims to secure an additional $250 million of private sector capital, taking the overall size to $405 million, he said.

“The financing provided by the World Bank and its implementation by TSKB will allow for the Turkey green finance project to become a driving force in achieving our green development goals,” said Kerem Donmez, general director of foreign economic relations of the ministry of treasury and finance.

The project will support the transition to a low-carbon and climate-resilient economy, added World Bank Turkey country director Humberto López said.

“The fund will ultimately support the transition to a low-carbon and climate-resilient economy, as well as contribute to financial sector diversification,” he said.