The World Bank approved a €600 million loan guarantee on Friday for Turkish exporters to help them reduce carbon emissions and stay competitive in the market.
Türkiye’s Green Export Project, with a loan guarantee of up to €600 million to Eximbank, will mobilize €1 billion in international private capital through commercial loans of about 10-year tenures, the bank said in a statement.
The European market, which accounts for 40% of Turkish exports, is vital for Turkish exporters as they face EU carbon tariffs on their emission-intensive products from 2026, it added.
“The continued success of the export sector is crucial to Türkiye’s economy and its green transformation is a top priority for the government,” World Bank Country Director for Türkiye, Humberto Lopez, was quoted as saying in the statement.
“The World Bank is delighted to support these efforts that will contribute to the global transition to a low-carbon future and, at the same time, enhance the firms' and country's competitiveness,” Lopez added.
For her part, Gunhild Berg, one of the World Bank’s project team leaders, said, “The project is a game-changer for private capital mobilization to finance long-term, sustainable, and green economic growth.”
“The guarantee instrument is also a market-oriented approach to supporting exporters to adapt to climate transition risks and take advantage of the opportunities offered by the increased demand globally for green products and services,” Berg added.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr