On the sidelines of the 31st UN Climate Change Conference (COP31) hosted in Antalya on Thursday, Turkey formalized 10 separate loan agreements totaling $5.1 billion with four leading multilateral development banks to fast-track its national low-carbon and climate-resilient transformation agenda.
Delivering remarks at the official signing ceremony, Turkish Treasury and Finance Minister Mehmet Simsek emphasized that no single nation could independently cover the massive capital outlays required for a full-scale green economic overhaul. “No national public budget is sufficient to single-handedly meet the enormous investment demands of this systemic transition, which is why targeted, structured support from multilateral development institutions is of critical strategic importance for our country,” Simsek stated. He noted that Ankara had completed rigorous pre-planning work, including vetting and finalizing bankable project pipelines to ensure the funds would be deployed efficiently as soon as disbursements begin. Since 2023, Turkey has secured roughly $50 billion in total external development financing from its global partner institutions, Simsek confirmed, marking a major step forward in its post-pandemic and post-earthquake economic recovery paired with climate action goals. The full portfolio of projects backed by the new $5.1 billion financing is projected to generate thousands of new formal jobs across green sectors, boost industrial competitiveness, and reinforce long-term macroeconomic stability.
The four partner institutions that signed the latest loan pacts are the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), World Bank Group, and Islamic Development Bank (IsDB). Simsek highlighted that Turkey’s first formal loan agreement with the ADB was signed in November 2025, and the newly finalized deals will push the ADB’s total committed financing to Turkey to $3.1 billion within just 12 months, earmarked for scaling climate-focused investments and expanding affordable credit access for small and medium-sized enterprises (SMEs). ADB President Masato Kanda outlined that the bank’s allocated funds would support construction of disaster-resilient hospitals, upgrade national public healthcare service delivery systems, and fund specialized training programs for the next generation of Turkish medical professionals. Additional targeted financing streams will extend long-tenure, low-interest credit to small businesses, with priority access granted to enterprises in underdeveloped regions, provinces affected by the 2023 devastating earthquakes, and women-led entrepreneurial ventures. “Extended repayment timelines will remove cash flow pressure for these businesses, allowing them to invest in upgrades, rebuild local economies, create local jobs, and scale sustainably. Today’s core thematic priority at COP31 is building resilient urban centers, and every clause of these newly signed agreements directly advances that shared global goal,” Kanda explained.
AIIB President Zou Jiayi confirmed that her institution will allocate $1.6 billion to support the Turkey Climate Action Acceleration Program, plus supplementary additional financing to assist Ankara in fully rolling out and enforcing its national climate regulatory framework. The AIIB will also channel an extra $300 million in dedicated financing through Turkey’s official export credit agency Turk Eximbank. “This combined financing package will not only accelerate Turkey’s green transition milestones but also equip local domestic businesses with stronger buffers to absorb unforeseen economic and climate-related shocks,” Zou noted.
World Bank Group President Ajay Banga announced that his institution had finalized three separate agreements on the same day, with a combined value of $1.5 billion, designed to deliver targeted support for sustainable urban development, low-carbon agricultural modernization, and green industrial upgrading. Banga added that this $1.5 billion figure does not include the additional private sector investment the World Bank Group expects to catalyze and mobilize through its de-risking mechanisms for complementary climate projects across the country.
In a parallel announcement on the same COP31 sidelines, Turkish Energy Minister Alparslan Bayraktar revealed that Ankara had also signed a preliminary memorandum of understanding worth $15 billion with China’s National Energy Administration, focused on large-scale renewable energy deployment in Turkey. Under the terms of this preliminary deal, the partners will develop 7,000 megawatts of combined solar and onshore/offshore wind power capacity, deploy new grid-scale energy storage systems, and upgrade 4,000 megawatts of national electricity transmission infrastructure to support the influx of variable renewable energy. The MOU also includes binding provisions for targeted technology transfer, to support the full local manufacturing of wind turbine components within Turkish borders, a move that will significantly boost the growth of Turkey’s domestic clean energy industrial base.









