Minister Kacır announced! 5 billion euro decarbonization target

Kacır spoke at the session titled "Global Finance Summit" held within the scope of the 31st Conference of the Parties (COP31) to the UN Framework Convention on Climate Change, hosted by Türkiye for the first time.

Stating that the expansion of international trade, the liberalization of markets and the integration of global supply chains have been among the main driving forces of economic growth for decades, Kacır noted that today the foundations of this economic order are under pressure.

Minister Kacır underlined that the rules-based multilateral trading system is being tested due to increasing protectionism, rising customs tariffs and intensifying geopolitical competition, and said, "The global trade and investment environment is increasingly shaped by factors such as economic security, strategic priorities and resilience. At the same time, the competition for technological leadership is intensifying." he said.

Noting that Türkiye has managed to create a strong industrial infrastructure and strengthen its position in global production and trade in the face of these developments, Mehmet Fatih Kacır stated that the manufacturing industry has become deeply integrated into international production networks.

Kacır continued his words as follows: "Turkey is the leading country in Europe in the production of commercial vehicles, buses, white goods, solar panels, steel, ferrochrome, wood-based panels and cement. We are also among the leading manufacturers in Europe in the production of aluminum, ceramics, plastic products, motor vehicles and wind turbines. In the wide economic region extending from China to Central Europe, Turkey ranks second in terms of the diversity of products it exports competitively and the number of international markets it reaches. Global value chains have higher added value." "We are constantly updating our support mechanisms and implementing new programs in order to ensure the transition to these segments. Our new incentive system, which we implemented last year, provides advantageous financing opportunities for high technology-oriented investments."

Stating that they have developed a selective credit policy for strategic investments, Kacır said that the HIT-30 High Technology Investment Program offers significant incentives for investments in critical technologies, including batteries, electric vehicles, solar cells, wind turbines, semiconductors, defense technologies, data centers, artificial intelligence and industrial robots.

Stating that they continue to be determined to harmonize the industrial transformation with long-term climate goals while advancing the development of the Turkish industry, Kacır emphasized that they are working in close cooperation with international financial institutions to eliminate investment obstacles to green transformation and accelerate the use of low-carbon industrial technologies.

"FAVORABLE CONDITIONAL FINANCIAL RESOURCES WILL ALLOW THE MOBILIZATION OF LARGE AMOUNT OF PRIVATE CAPITAL"

Kacır stated that they provided over 1 billion dollars of financing for industrial enterprises, small and medium-sized enterprises (SMEs) and green technology initiatives within the scope of the partnership with the World Bank.

DECARBONIZATION TARGET OF 5 BILLION EUROS!

Kacır also stated that they established the Turkish Industrial Decarbonization Investment Platform (TDIP) in cooperation with the European Bank for Reconstruction and Development (EBRD), the World Bank and the International Finance Corporation (IFC) in order to accelerate decarbonization investments in the industry, develop a portfolio of projects suitable for financing and mobilize international capital to support the Green Industry Transformation Plan. It aims to achieve emission reductions above the carbon dioxide equivalent.” he said.

Stating that the Asian Development Bank, Islamic Development Bank, European Investment Bank and the European Commission will also join the platform as of tomorrow, Kacır underlined that the participation of these organizations reflects the common determination for Türkiye's industrial transformation.

Kacır stated that they are aware that the active and continuous participation of private financial institutions as well as development partners is necessary in order to realize the full potential of the platform and said:

"The effective inclusion of commercial banks, institutional investors and insurance companies in the process requires a continuous dialogue in which investment priorities, financing constraints and private capital expectations are addressed from the very beginning. The memorandum of understanding that we will soon sign with the Glasgow Net Zero Finance Alliance (GFANZ) is an important step in establishing this dialogue on a structured and institutional basis.

Within the scope of the Private Finance Participation Programme, GFANZ will bring together private finance institutions, facilitate the sharing of investment perspectives and support the identification of feasible solutions to financing obstacles in Türkiye's industrial decarbonization process. "In this way, the financing resources we provide with favorable conditions will allow the mobilization of a much larger amount of private capital."

Minister Kacır stated that the transformation of the industry is a long journey and no institution can complete this process alone. Stating that this transformation requires patience, trust and the will of public and private sector actors to share both effort and responsibility, he concluded his words as follows:

"The partnership we will formalize today will bring new perspectives to the Turkish Industrial Decarbonization Investment Platform and ensure the participation of the global private finance community in the process. I believe that the results of this partnership will be felt not only in the Turkish industry, but also in broader efforts to ensure that the country's platforms produce concrete results in terms of investments and climate goals."

Following the session, the "Cooperation to Support the Mobilization of Private Sector Financing" agreement for the Turkish Industrial Decarbonization Investment Platform, under the auspices of Minister Kacır and EBRD President Odile Renaud-Basso, was signed by Ahmet Halit Hatip, General Director of European Union and Foreign Relations of the Ministry of Industry and Technology, and GFANZ Vice President Mary Schapiro.