The role of banks in climate finance comes to the fore

Making evaluations to the AA correspondent within the scope of the 31st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP31) held in Antalya, Tan stated that the summit is an important meeting in terms of international participation and organization.

Tan pointed out the importance of the main theme of COP31 being "the transition from commitment to action" and emphasized that the strategic goals determined in the past years should now turn into concrete practices.

Stating that organizing COP31 in Türkiye has a special meaning in terms of energy transformation, Tan said, "Various commitments were made and strategic goals were determined in the past years, but now they really need to be implemented, that is, turned into action." he said.

"FINANCIAL INSTITUTIONS NEED TO TAKE AN ACTIVE ROLE IN ENERGY TRANSFORMATION"

Tan pointed out that the transformation in the energy field requires large-scale investments and noted that financing models will be decisive in achieving electrification and renewable energy targets.

Stating that holding COP31 in Türkiye is important in terms of addressing energy transformation targets on the international platform and evaluating financing opportunities, Tan continued his words as follows:

"In this process, public and private sector cooperation needs to be strengthened. Active participation of financing institutions in the process is important in order to build the future in the field of energy and achieve the determined targets. This year, only 3.4 trillion dollars of energy investment was made in the world.

Here, the importance of banks that finance the system with the right projects and right investments is increasing. Banks are indispensable actors of climate finance. "In order for the energy transition to be successful, financial institutions must take an active role in the investment processes."

Tan pointed out that QNB Türkiye's foreign resources are approximately 11 billion dollars, and that approximately 35 percent of this amount consists of sustainable resources.

Stating that they are trying to provide financing for sustainable investments by using these resources, Tan said that they are increasing the proportion of sustainable financing in their portfolio day by day.

Tan stated that they support Türkiye's 2053 net zero emission target and said:

"This process is not limited to the banks' own operations. It is also important for the companies financed to reduce their emissions. We will continue to act with an inclusive approach in terms of resources, loans and commitments in climate finance. The initiatives launched at COP31 need to be supported by the right financing models and contribute to sustainable energy consumption."