Minister Kacır Unveils Green Procurement Initiative Between Turkey and the EU: €170 Million Fund
Minister of Industry and Technology Mehmet Fatih Kacır made statements regarding an important project aimed at strengthening supply chains in Turkey. The project, which has received a €17 million grant from the European Union, has established a €170 million fund with the participation of the European Bank for Reconstruction and Development (EBRD) and partner banks.
Speaking at the project's opening event, Minister Kacır provided information about multi-dimensional support mechanisms that enable enterprises to integrate into the European supply chain. He highlighted Turkey's many advantages, ranging from political stability and strong logistical connections to investor-friendly regulations and technological infrastructure, emphasizing the country's goal of enhancing its competitiveness in the European market.
Turkey’s participation in global value chains will be increased Turkey has succeeded in becoming one of the significant supply destinations in Europe with its world-class production capabilities. Minister Kacır stated that, through the Customs Union and free trade agreements, Turkey has access to a market with a population of one billion, positioning itself as a hub for production and R&D for international firms.
Following China, Turkey is able to export the largest variety of products to Europe at competitive prices, particularly achieving positive results in its trade relations with the European Union through the Customs Union. Kacır pointed out that they have implemented the Green Deal Action Plan to make the industry more competitive in the European market, planning over $70 billion in investments for green transformation by 2053.
Sustainable production goals with the Green Deal action plan Turkey is making various investments to align its industry with the European Green Deal. The "Sectoral Roadmaps" prepared for the steel, aluminum, cement, and fertilizer sectors, with the EBRD's support, identify emissions reductions and alternative technologies.
Support provided to SMEs through digital transformation projects enhances the competitiveness of the industry. Over $700 million in financing is offered to industrialists and green technology ventures through projects conducted in collaboration with the World Bank. A €300 million fund provided with KOSGEB support will be used for the digital transformation of SMEs.
Goal: Deeper trade relations with the EU The Ministry of Industry and Technology aims to increase the participation of Turkish firms in global value chains and deepen Turkey-EU trade relations. Minister Kacır stated that companies will benefit from supply chain financing to ensure compliance with Environmental, Social, and Governance (ESG) principles, aiming for the integration of 300 firms into the European value chain during this process.
In this context, opportunities such as ensuring compliance with ESG principles, providing incentive mechanisms to facilitate industrialists, and access to trade financing are being offered. Specific support will be provided to SMEs in the earthquake region, planning for a greater allocation of resources to these areas.
Businesses will be strengthened through financial solutions The mechanism to be created within the project will allow businesses in Turkey to participate more actively in global value chains. The joint supply chain financing program established by Akbank (IS:AKBNK) and Şok Market is creating a model example in this field. The fact that suppliers of Şok Market in the earthquake-affected region can access financing for the first time increases the project's significance.
The ministry is ready to implement more investment and financing projects within the framework of the European Sustainable Development Fund. Efforts will continue for Turkey to enhance its global competitiveness across all sectors, especially in the manufacturing industry. The project provides significant opportunities for Turkey to assume a more active role on the international stage.