Turkey intends to invest about $300 billion by 2040, as part of its plan for transformation in the energy sector and enhancing its production capabilities, in addition to signing a strategy for cooperation with the OPEC Fund for International Development for a period of 3 years that includes broad fields, from health and agriculture to the private sector and green transformation.
Turkish Minister of Energy and Natural Resources Alp Arslan Bayraktar said, during his participation in a high-level event between Turkey and the International Renewable Energy Agency, on the “Global Pledge for Geothermal Energy” within the framework of the Conference of the Parties to the United Nations Framework Convention (COP31) held in Antalya, southern Turkey, that the steps to achieve the global goal of geothermal energy for the year 2050 were reviewed.
He added that this goal is to increase global geothermal energy supplies twelvefold by 2050, with the global installed capacity of geothermal energy rising from about 16 gigawatts currently to 193 gigawatts, which sets a new standard for ambition in the field of energy transition.
Turkish energy plan
Bayraktar pointed out that Turkey ranks fourth in the world, with an installed geothermal energy capacity of 1.8 gigawatts, and “we are determined to continue developing our capabilities in the field of geothermal energy, which we employ in a wide range of applications, starting from electricity generation and central heating to greenhouse agriculture and thermal tourism.”
He added, “Within the framework of our national energy vision until 2040, we aim to reach about 6 gigawatts of combined installed capacity for geothermal energy and biomass. We can transform this enormous latent potential into greater energy production, safer energy supplies, and stronger economies. We call on all our partners to join us in achieving the 2050 goal.”
Bayraktar said that the world seeks to reduce emissions and achieve climate goals, in parallel with ensuring economic growth and energy security, pointing out that energy security represents part of national security, and a balance must be achieved between switching to clean energy sources and meeting the growing energy needs.
He stated that Türkiye intends to invest about 300 billion dollars by 2040, as part of its plan to transform the energy sector and enhance its production capabilities.
He explained that the “National Energy 2040” plan aims to increase the installed capacity of electricity generation in Turkey from 128 gigawatts to 281 gigawatts, including 175 gigawatts of wind and solar energy, and to increase the share of renewable energy from 63 to 77 percent, in addition to developing a capacity to generate electricity from nuclear energy amounting to 10 gigawatts.
Bayraktar pointed out that the plan includes providing a capacity to store electricity with batteries amounting to 140 gigawatts per hour, and raising the capacity of electrical interconnection with other countries to 15 gigawatts, explaining that improving energy efficiency and expanding the use of electricity will contribute to achieving savings worth $240 billion by 2040.
He stressed that implementing transformation plans in the energy sector requires strong partnerships, innovative technologies and a stable investment environment, and that the next stage must focus on transforming climate goals and pledges into practical steps, and strengthening international cooperation to ensure energy security and the sustainability of its supplies.
Cooperation with the OPEC Fund for Development
On the other hand, the Turkish Minister of Treasury and Finance, Mehmet Simsek, discussed with the head of the OPEC Fund for International Development, Abdul Hamid Al-Khalifa, a cooperation strategy between Türkiye and the Fund for a period of 3 years.
During a meeting with Simsik on the sidelines of the COP 31 conference, Al-Khalifa proposed signing a “country cooperation strategy” between the Fund and Turkey for a period of 3 years, in addition to a framework agreement with the aim of increasing the size of private sector projects in Türkiye.
According to a statement by the Turkish Ministry of Treasury and Finance about the meeting, Simsek stressed that cooperation with the OPEC Fund extends to broad areas, from health and agriculture to the private sector and green transformation.
He said that the Fund's support for rebuilding hospitals in the area of the Kahramanmaras earthquake that occurred on February 6, 2023 in southern Turkey, and for agricultural facilities contributed significantly to the region's recovery, and that the financing provided through the Turkish Development and Investment Bank and the Turkish Industrial Development Bank supports private sector investments and the green transformation.
Simsek touched on the areas in which Türkiye wishes to intensify cooperation, noting that green and digital transformation occupy a pivotal position in the structural transformation path of the Turkish economic program.
He stressed the importance of directing the OPEC Fund's resources towards private sector investments in these two areas. He also pointed out the necessity of supporting infrastructure investments that enhance connectivity, especially transport and logistics projects aimed at improving the connection of industrial areas with ports.
Simsek welcomed the OPEC Fund's contribution of $250 million to the North Istanbul railway project, which costs $6.75 billion, which will be implemented with joint financing from 7 international financial institutions.
The project aims to accelerate rail transport between cities and strengthen the “middle corridor” to Europe, and Türkiye has signed a loan agreement with the OPEC Fund regarding it, while the necessary procedures for its entry into force continue.
The OPEC Fund for International Development, which was established in 1976 and is headquartered in Vienna, has become an active partner in Turkey’s development in the fields of health, agriculture, green transformation, and transportation in recent years. In 2024, it provided $20 million in financing for the emergency hospitals project after the 2023 earthquake, affiliated with the Turkish Ministry of Health. It also provided a $50 million loan to the Turkish Development and Investment Bank, to meet the investment and working capital needs of agricultural and food facilities in the region. The earthquake, and in 2025, provided a loan of 50 million euros to the Turkish Industrial Development Bank, to support renewable energy projects, energy efficiency and storage, the circular economy, and climate investments.
Chinese stocks and Hong Kong stocks fell during trading on Wednesday, under the pressure of renewed concerns about rising global interest rates, after US inflation data reinforced expectations that the Federal Reserve would continue monetary tightening, at a time when measures to support local markets tried to limit losses. In the currency market, the Chinese yuan maintained its relative stability against the dollar, despite the central bank adjusting its reference rate to the weakest level since late October.
The Shanghai Composite Index fell by 0.2 percent to 3,654.95 points, by the mid-session break, while the CSI 300 index of leading stocks fell by 0.3 percent.
In Hong Kong, the Hang Seng Index fell by 0.8 percent to 24,352.69 points, while the Hang Seng Technology Index fell by 1.4 percent, with investors continuing to be cautious about growth stocks that are sensitive to interest rate changes.
Despite the downward trend in major indices, some technology stocks achieved gains, supported by continued interest in companies related to artificial intelligence and communications infrastructure.
The "Chainext" index for emerging companies rose by 1 percent, while the "Star 50" index specializing in technology stabilized near its previous levels.
The communications sector topped the list of gainers, after the CSI Fifth Generation Communications Index rose by 3 percent during morning trading, and the shares of Zhongji Innolight, which specializes in manufacturing optical communications units, rose by 8.3 percent, continuing to benefit from the growing interest in data network components.
The varying performance of the sectors reflects the continued selectivity of investors, as some companies associated with advanced technology maintain their attractiveness, while the broader market faces pressures resulting from the rise in the cost of financing globally.
US inflation brings back interest concerns
Asian markets came under pressure after the US consumer inflation reading came higher than expectations, coinciding with tough statements from Federal Reserve officials. These developments prompted investors to increase their bets on raising US interest rates next December, which led to a rise in global bond yields and a strengthening of the dollar.
Nanhua Futures analysts said that the rise in US yields and the rise of the US currency are putting pressure on the valuations of Chinese stocks denominated in the yuan.
They explained that the recovery of the markets, during the recent period, was based mainly on local measures to achieve stability, and on a temporary decline in some external risks, but they warned of the limited strength and sustainability of these factors, expecting indices to continue trading within limited ranges in the near term, despite the relative improvement in investor sentiment.
Energy market fluctuations increased uncertainty, as oil prices rose on Wednesday after touching their lowest levels in two months during the previous session, amid varying expectations between the possibilities of calming the war with Iran and fears of continued attacks on ships in the Strait of Hormuz.
The yuan stabilizes despite the strength of the dollar
In the exchange market, the Chinese yuan recorded limited movements against the dollar, with investors balancing between the strength of the US currency and the signals issued by the People's Bank of China. The yuan was traded in the local market at about 6.6746 to the dollar, an increase of 0.09 percent, while its price in foreign transactions reached about 6.6736 to the dollar, an increase of approximately 0.04 percent.
Before the market opened, the central bank set the daily reference rate at 6.7191 yuan to the dollar, the weakest level since October 22, and 336 points less strong than Reuters estimates.
The Chinese trading system allows the yuan to move within a 2 percent band up or down around the daily reference rate.
In November, the central bank began setting weaker reference rates for the currency, after a year of continuous strengthening, in a move that traders interpret as an attempt to slow the pace of the yuan's rise.
Several Chinese banks also raised interest rates on dollar deposits to levels that in some cases exceed US yields, which may encourage the retention of the dollar and limit the gains of the local currency.
Markets await the Fed’s decision
Nanhua Futures analysts believe that the decline in consensus regarding the continued appreciation of the yuan has pushed the dollar exchange rate against the Chinese currency to move within a narrow range.
However, they pointed out that the strength of Chinese exports during October, and the continued large trade surplus, support the possibility that the general trend of the yuan’s appreciation will remain in place.
In the American markets, the Fed Watch tool, affiliated with the CME Group, showed that traders are 91.9 percent likely to raise interest rates by 25 basis points next month, compared to a 9.1 percent probability of an increase of 50 basis points.
These expectations reflect a shift toward a tighter US monetary policy, which may increase pressure on capital flows and asset valuations in emerging markets.
While the Chinese authorities are trying to maintain market stability and manage the yuan's gradual rise, the path of US interest rates and oil prices remain decisive factors in determining the direction of stocks and currencies in the coming weeks.
The credit rating agency Moody's raised its growth forecast for the Indian economy to 7 percent, compared to 6.5 percent previously, during the fiscal year ending in March 2027, driven by the broadening of the economic growth base and the country's ability to confront the energy supply shock resulting from the war in Iran.
The agency said that strong consumption, improved investment, and solid macroeconomic indicators would help India maintain a growth rate approaching 7 percent in the medium term, according to Reuters.
Moody's explained that India dealt with the shock of rising energy prices better than it had previously expected, benefiting from its ability to diversify sources of crude oil and gas supplies, as well as limit the transmission of the immediate impact of rising prices to consumers, through state-supported oil marketing companies and tax cuts.
The agency indicated that a group of economic indicators, including strong production of capital goods and increased imports, accelerating growth in credit directed to the industrial sector, and high rates of utilization of production capacity, indicate that the Indian economy may be on the cusp of a new cycle of private investment spending.
The Indian economy recorded growth of 7.8 percent on an annual basis during the quarter extending from April to June, exceeding expectations, supported by the investment boom and the strength of the manufacturing sector, in addition to the continued strength of consumer demand.
On the other hand, Moody's warned of a number of risks that may affect growth prospects, including expanding inflationary pressures, a weak southwest monsoon season, as well as the possibility that tightening monetary policy will delay the recovery of private investment.
The Central Bank of India raised interest rates in October for the first time in nearly four years, while markets currently expect monetary policy to tighten by an additional 90 basis points over the next twelve months.
Indian companies raise $3 billion in bonds
On the other hand, Indian companies are rushing to enter the bond market, after a sharp decline in yields provided an opportunity to borrow at a lower cost, ahead of the monetary policy review scheduled for December by the Reserve Bank of India, according to what five investment bankers said on Wednesday.
Bankers said that companies, including state-owned enterprises and non-banking finance companies, are preparing to raise about 280 billion rupees ($3 billion) through bond issues during the second half of November.
Prime Database data showed that companies raised about 350 billion rupees during the first ten days of November, after fundraising operations fell to the lowest level in six months, at 609 billion rupees, during October.
Nishchai Nath, founder and CEO of the “Bond Scanner” platform for electronic trading in bonds, said that the recent decline in yields provided borrowers with an opportunity that was not available in September and October, adding that a number of companies that postponed bond issuances or withdrew them when yields were high may now accelerate the implementation of those plans.
Benchmark bond yields for companies with a credit rating of “EEE,” according to data from the London Stock Exchange Group, fell by 30 basis points for three-year bonds and 35 basis points for five-year bonds since the beginning of this month, keeping pace with the decline in government bond yields.
But market participants warned that the opportunity to borrow at a lower cost may be short-lived, with expectations that both the Reserve Bank of India and the US Federal Reserve will raise interest rates during December.
The Reserve Bank of India raised the key interest rate to 5.50 percent in October and adopted a gradual approach to monetary tightening, indicating the possibility of further increases.
Venkatakrishnan Srinivasan, founder and managing partner of debt consulting firm Rockfort FinCap, said that Indian companies are increasingly turning to issuing three- and five-year bonds, given that the local debt market provides the lowest borrowing costs, adding that demand for long-term bonds will remain strong from large institutional investors.
Investment inflows to Indian gold and equity funds slow
In a related context, investments in gold exchange-traded funds in India declined by 22 percent during October, while flows to equity mutual funds also slowed, according to data from the Mutual Funds Association of India.
Net flows into gold exchange-traded funds fell to 34.74 billion rupees ($370.57 million) last month, while net flows into equity mutual funds fell by about 14 percent on a monthly basis, to 329.9 billion rupees ($3.52 billion).
In contrast, debt funds attracted net inflows of 1.13 trillion rupees during October, supported by short-term funds and liquidity funds, after this category recorded net withdrawals of 1.83 trillion rupees in September.
