The OPEC Fund for International Development and the Industrial Development Bank of Türkiye (TSKB) have signed an agreement for a EUR 50 million ($52.46 million) loan to support climate- and circular economy-related projects in the Mediterranean country.
TSKB will use the loan to unlock investments in “renewable energy, energy efficiency, climate adaptation, climate-related equipment production, and circular economy initiatives”, the OPEC Fund said in an online statement.
“The financing, provided through an on-lending arrangement with the Republic of Türkiye’s Ministry of Treasury and Finance, marks the first collaboration between the OPEC Fund and TSKB”.
OPEC Fund president Abdulhamid Alkhalif commented, “… we aim to support Türkiye’s transition to a low-emission economy and its net zero target by 2053, while fostering inclusive and green economic growth”.
TSKB CEO Murat Bilgiç said the financing “will help diversify our sustainable funding sources and support Türkiye’s green transformation”.
“We aim for this resource to finance low-emission and resilient economy projects, bringing significant benefits to our country”, Bilgiç added.
The OPEC Fund, founded 1976 by members of the Organization of the Petroleum Exporting Countries (OPEC), runs on members’ voluntary capital contributions. It supports development projects in non-member, low- and middle-income states.
Last year the OPEC Fund committed a record $2.3 billion. “These commitments, distributed across 70 projects worldwide, are combating climate change, improving global food security, advancing the energy transition and fostering sustainable economic and social development”, it said in a press release January 29, 2025.
The Middle East, North Africa, Europe and Central Asia accounted for 39 percent. Sub-Saharan Africa got 34 percent, Asia-Pacific 13 percent and Latin America and the Caribbean 11 percent.
“The remaining 3 percent of financing was provided to support regional and global projects”, the OPEC Fund said. “The funds were delivered through a range of financial instruments in public and private sector lending, trade finance and grants operations”.
In 2024 it achieved its Climate Action Plan ahead of target. “Aligned with this strategy, renewable energy projects constituted nearly 40 percent of the institution’s energy sector commitments last year”, it said. These included projects in Bhutan, the Dominican Republic, Egypt, Mauritania, Tajikistan, Uganda and Uzbekistan.
“The largest segment of last year’s funding was policy-based lending (19 percent), supporting government-led sustainable development programs and policy implementation in countries such as Armenia (US$50 million), Cote D’Ivoire (US$60 million), Jordan (US$100 million), Montenegro (US$50 million), Morocco (US$100 million), Sri Lanka (US$50 million) and Uzbekistan (US$70 million)”, the OPEC Fund said.
Source: By Jov Onsat from Rigzone.com