TBB President Çakar: The Credit Provided by the Banking Sector to the Energy Sector Exceeded 1 Trillion TL

Alpaslan Çakar, President of the Banks Association of Turkey (TBB), stated that the amount of credit extended by the banking sector to the energy sector exceeded 1 trillion TL, and announced that 347 billion TL of the 695 billion TL energy loan within the scope of project finance was provided to renewable energy.

In his speech at the "Financing of Transformation: Türkiye on the Way to COP31" meeting, Çakar made evaluations about climate finance, energy transformation and the role that the finance sector can assume in this process before the COP31 Antalya Summit.

Stating that increasing renewable energy capacity, energy efficiency, industry's transition to low-carbon production and adaptation to new technologies are among the important investment areas of the next period, Çakar said that recent developments have made the relationship between energy security and economic security more visible.

Pointing out that supply disruptions through the Strait of Hormuz increased oil and natural gas prices, Çakar stated that the growth in industry, electrification and data centers also increased the demand for electricity. Çakar noted that these developments reveal the importance of considering energy supply security together with its political, economic and environmental dimensions.

Referring to the International Energy Agency (IEA)'s review of Türkiye, Çakar said:

"The Turkey review of the International Energy Agency, headed by Mr. Birol, also points out that investments in networks, system flexibility and energy efficiency can reduce our exposure to fluctuations in fuel prices. This determination makes the "35 by 35" target in our COP31 vision and the target of increasing the share of electricity to 35 percent by 2035 even more meaningful."

Expectation of 3.4 trillion dollars in global energy investment

Pointing out that energy transformation brings with it a great investment need, Çakar stated that the IEA expects global energy investments to reach 3.4 trillion dollars in 2026, of which approximately 2.2 trillion dollars will be directed to clean energy fields.

Stating that the Turkish banking sector also assumed an important responsibility in this process, Çakar said that they played an active role in financing Türkiye's energy transformation with financing instruments supporting different sectors from renewable energy to energy efficiency, from industry to transportation, from construction to agriculture.

Credit in the energy sector exceeded 1 trillion dollars

Explaining that the amount of credit extended by the banking sector to the energy sector is over 1 trillion TL, Çakar stated that 347 billion TL of the 695 billion TL energy loan on the project finance side is renewable energy loans.

Çakar stated that 53 TL of every 100 TL of project financing provided to the energy sector was directed to renewable energy.

Stating that the banking sector aims to bring together more resources with green and sustainable investments, Çakar noted that bringing international financing opportunities to Türkiye and developing new financing models are among the priorities of the sector.

“How can we further mobilize existing global capital?”

Emphasizing that climate change can no longer be considered only as an environmental issue, Çakar stated that climate change has turned into a systemic risk area affecting economic growth, financial stability, trade, employment and development policies.

Stating that they see green transformation as a strategic transformation process that strengthens economic resilience and prepares for the economy of the future, Çakar continued his words as follows:

"However, the financing required for this transformation is well above the available resources. While an annual climate investment of approximately 7.8 trillion dollars is needed in the 2025-2030 period for the 1.5 degree target, global climate finance is approximately 2 trillion dollars. This table shows us not only a large financing gap, but also the need to direct existing capital to the right and qualified projects."

Çakar, "How can we further mobilize the existing global capital?" He said that the question should be at the center of the agenda.

Stating that the Turkish banking sector plays a role in mobilizing capital in the transformation process, thanks to its strong capital structure, risk management capacity and close relationship with the real sector, Çakar stated that the sector serves as a bridge that brings together qualified projects, especially energy efficiency and low-carbon industry, with financing.