Turkey Launches Industrial Decarbonization Investment Platform
Forex - The Ministry of Industry and Technology has taken a significant step towards achieving our country's climate and sustainable development goals by launching the "Turkey Industrial Decarbonization Investment Platform (TIDIP)." Through this platform, it aims to attract €5 billion in resources from international financial institutions to support the investments needed for the green transformation of industry by 2030, and as a result, to reduce carbon emissions by more than 20 million tons annually.
The platform, designed 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), targets the steel, aluminum, cement, and fertilizer sectors in its initial phase. It is anticipated that the platform will expand to include sectors such as glass, ceramics, and chemicals, integrating solutions from a broader economic perspective. The platform is expected to provide significant opportunities for stakeholders, from policymakers to project developers, to develop joint actions regarding green investments.
Minister of Industry and Technology Mehmet Fatih Kacır, speaking at the TIDIP Joint Declaration Signing Ceremony, stated the following:
ZERO WASTE: Under the leadership of our President, we have been implementing an economic model based on the industrialization and development of our country for 22 years without compromising the sustainable use of our natural resources. We demonstrate an approach that supports international steps taken to combat climate change and is an integral part of constructive measures for solving the problem, leading international environmental initiatives with projects like Zero Waste, spearheaded by Ms. Emine Erdoğan.
2053 NET ZERO EMISSION TARGET: As a crucial indicator of our struggle against climate change, we have approved the Paris Agreement. We have declared our 2053 Net Zero Emission target to the world. In line with our 2053 net zero emission target and development priorities, we are conducting efforts to ensure the green transformation of all sectors of our industry with the coordination of public institutions.
WINDOW OF OPPORTUNITY: In the process of the sustainability-based transformation of our industry, we carefully monitor the steps taken by the European Union, our largest trading partner, towards green transformation. We act with the understanding that the European Green Deal and the Border Carbon Adjustment Mechanism are not a threat to Turkish industry, which is a significant part of European value chains, but rather an important window of opportunity for green transformation.
IMPORTANCE OF GREEN TRANSFORMATION: In order for our country to reach its net zero emission target by 2053, we anticipate a need for over $70 billion in investments: $31 billion in the steel sector, $30 billion in the cement sector, and $5 billion each in the aluminum and fertilizer sectors. Given the nature and magnitude of the investment needs, we see the merging of efforts between Turkish industry and international financial institutions towards the net zero emission target as the key to successfully achieving the green transformation of our industry by developing and implementing working models that benefit from the financial resources, expertise, and knowledge of these institutions.
TURNING POINT: We regard the TIDIP Joint Declaration as an important milestone in this context. With the platform established initially in cooperation with the EBRD, IBRD, and IFC, we aim to create a comprehensive mechanism providing 360-degree solutions for green transformation investments identified within Low Carbon Roadmaps and encourage other international financial institutions and multilateral development banks to join the platform rapidly.
CARBON REDUCTION: This comprehensive platform we are establishing has four main priorities. First, to ensure access to international finance for our industry to accelerate green transformation investments. We aim to secure €5 billion in financing for decarbonization investments in four priority sectors by 2030 through this platform, bringing together public institutions, international financial organizations, banks, and industry stakeholders. We anticipate that investments made through this financing mechanism will lead to a carbon reduction of 20 million tons, equivalent to 3.6% of the country's annual carbon emissions.
EXPANDING SECTORAL SCOPE: Our second goal is to broaden the sectoral scope. We will include other sectors that play a crucial role in green transformation, such as glass, ceramics, and casting, alongside the initially targeted steel, cement, aluminum, and fertilizer sectors. Developing low carbon roadmaps for the sectors we plan to include in TIDIP in collaboration with the EBRD and other stakeholders is among our top priorities.
ENSURING COMPLEMENTARITY: Our third objective is to ensure the complementarity of the platform with other climate finance and green transformation programs we are undertaking. Our ministry is working with other international financial institutions on other strategic programs and projects that complement TIDIP, aiming to provide new financing sources that will create high synergy with TIDIP in the coming period.
TECHNICAL ASSISTANCE: Our fourth and final goal is to implement technical assistance mechanisms that will support the platform. Our technical assistance mechanism comprises two main components: Platform-Based Consultancy and Project-Based Consultancy. TIDIP stakeholders will provide consultancy to our industry and ministry for the development of necessary monitoring and evaluation frameworks, as well as incentive mechanisms. They will also establish project-based collaborations for the development of low carbon roadmaps, investment plans, and green finance strategies.
HISTORIC STEP: We see the Turkey Industrial Decarbonization Investment Platform as a historic step that will bring our industry closer to our 2053 Net Zero Emission Targets. As the Ministry of Industry and Technology, we will always provide the necessary support and resources to ensure that the platform reaches its highest potential.