"COP31 will be an 'implementation COP'"

The COP31 Climate Summit to be held in Türkiye is aimed to go beyond theoretical discussions and declarations of intent and become an "implementation COP" where concrete action plans are implemented.

Stating that electrification and green transformation steps in industry play a critical role, Yeliz Atay Arıyök stated that global climate finance is not yet sufficient, but this resource can be increased with concrete commitments from leaders.

Pointing out that Türkiye's investment need has increased in line with its 2053 net zero emission targets, Arıyök shared data on QNB Türkiye's international borrowing portfolio.

Explaining that one third of the bank's international borrowing portfolio of approximately 11 billion dollars consists of sustainable financing resources, Arıyök stated that these resources are transferred to companies with different loan packages.

A World's First with IFC: 100 Million Dollar Climate Transition Bond

The Bank, in cooperation with IFC, a member of the World Bank group, implemented the "Climate Transition Bond" mechanism worth 100 million dollars, which is a first in the world and within IFC.

Focusing on the transformation of sectors with high carbon emissions such as iron-steel and cement, this structure aims to gradually reduce the emission intensity in the current portfolio.

Reminding that QNB Türkiye has a 2050 net zero emission commitment, Arıyök underlined that we have entered a new era in banking:

In banks' credit committees, not only the financial statements of companies but also the actions they take within the scope of combating climate change are considered as the main decision-making mechanism.

In the coming period, companies' carbon footprint and transformation performance will become the most determining factor in accessing financial resources.

Interest Model that Decreases as You Go Green: Transformation is encouraged with "loan packages whose interest rate decreases as you go green", in which companies gain an interest advantage as they reduce their emissions.

Consultancy Support for SMEs and New Financing Package at COP31

Stating that large corporate companies can determine their transformation road maps with their own means, but the consultancy role of banks is vital for SME-scale businesses, Arıyök noted that production and supply chains are shaped together.

QNB Turkey, which previously launched the "Triple Impact" package supporting green financing and women/youth leadership with EBRD, announced that it will announce a new comprehensive and high-amount international financing package in cooperation with multiple development organizations within the framework of COP31.