World Bank Group Institutions IBRD and IFC join Government of Türkiye’s Groundbreaking Industrial Decarbonization Investment Platform in Partnership with EBRD

Ankara- 25 November 2024 - The Ministry of Industry and Technology of the Republic of Türkiye (MoIT), in collaboration with the European Bank for Reconstruction and Development (EBRD), the International Bank for Reconstruction and Development (IBRD), and the International Finance Corporation (IFC), have signed today in Ankara, a joint declaration on the establishment of the Türkiye Industrial Decarbonization Investment Platform (TIDIP). This ambitious initiative will facilitate Türkiye's low-carbon transition in the industrial sector, in line with the country's climate and development goals as outlined in the National Green Deal Action Plan, the National Development Plan, the updated Nationally Determined Contribution (NDC) and 2053 Net-Zero target.

Through the Platform, the Partners commit to advancing the transformation of Türkiye's industrial sector from fossil fuel dependency to renewable energy sources and low-carbon production processes. By driving energy efficiency and fostering innovation, the Platform aims to secure the country's economic competitiveness while enhancing energy security and promoting sustainable economic development.

Focused Industrial Sectors and Low Carbon Pathways

The TIDIP will consider energy-intensive industries such as iron and steel, primary and secondary aluminum production, clinker and cement, and fertilizers -which collectively hold the potential for significant decarbonization- as well as other strategic sectors. The efforts will be guided by four Low Carbon Pathways, developed under the auspices of the MoIT and with EBRD's support, which were completed in March 2024.

Promoting Investment and Collaboration

While the country is already making significant efforts supported by the international financial institutions, the TIDIP will help the identification of additional decarbonization investments in key sectors. The MoIT will oversee the Platform's activities, ensuring collaboration among a wide range of stakeholders including industrial companies, technology providers, engineering firms, development agencies, and sector associations. This approach aims to accelerate the transition to low-carbon technologies across the industrial spectrum, delivering mutual economic and environmental benefits.

Technical Assistance Components

To support the Platform's implementation, TIDIP will be equipped with two dedicated Technical Assistance components:

• Component 1: Ensures overall coordination, communication, and outreach among stakeholders. It includes monitoring and reporting, as well as the provision of policy advisory services to MoIT in line with national priorities and, where relevant, EU climate policies.
• Component 2: Focuses on assisting individual industrial companies in preparing customized decarbonization investment plans.

These initiatives will contribute to a sustainable future for Türkiye's industrial sector while supporting the global efforts to mitigate climate change. TIDIP represents a transformative opportunity for Türkiye, positioning the country as a regional leader in industrial decarbonization and green innovation.

IFC's Director for Türkiye and Central Asia, Wiebke Schloemer stated: "Türkiye Industrial Decarbonization Investment Platform is a landmark initiative that reaffirms our commitment to a sustainable and resilient future for Türkiye's industrial sector. With this collaboration, we are paving the way for significant investments in low-carbon technologies and renewable energy. This platform will not only reduce greenhouse gas emissions but also enhance the competitiveness of Turkish industries and create new job opportunities. We are committed to enabling a sustainable industrial transformation that will secure a prosperous and environmentally responsible future for Türkiye."

"The establishment of the Türkiye Industrial Decarbonization Investment Platform is another piece of the country strategy to move toward a low-carbon economy while ensuring the competitiveness of the industrial sector," said Humberto Lopez, Türkiye Country Director of the World Bank "Through this strategic partnership with the IBRD, IFC, and EBRD, we are not only helping to scale the necessary finance but also empowering our industries to thrive in a green economy. Together, we aim to foster innovation, safeguard energy security, and drive sustainable growth, positioning Türkiye as a leader in industrial transformation on the global stage."