Turkey is preparing changes across its financial system, industries and agriculture as it faces growing climate risks. The programme also sets several targets for the coming years that will test its progress.
The Asian Infrastructure Investment Bank (AIIB) has signed a $1.6 billion financing agreement with Turkey to support policy reforms intended to attract investment for the country's climate goals. The deal, the bank's largest climate policy-based financing package to date, comes as Turkey prepares to implement measures covering financial regulation, public finances and key economic sectors.
Turkey, which is hosting the COP31 climate conference in Antalya, is expected to require an additional $68 billion in climate investment by 2030. Around half of that funding will need to come from private sources, according to the AIIB.
The agreement will support implementation of Turkey's Climate Law and its emissions reduction plan. The country has set an interim target for 2035 and aims to reach net-zero emissions by 2053. The financing is intended to expand sustainable finance, speed up decarbonisation and strengthen the country's ability to deal with climate-related risks.
AIIB Chief Investment Officer Konstantin Limitovskiy said the package was the bank's largest financing of this kind and that it looked forward to supporting Turkey's climate ambitions. The bank's total climate financing reached a record $7.47 billion in 2025.
Carbon trading and renewable energy among priorities
One part of the programme will help Turkey develop its emissions trading system, which is still at an early stage. Under the scheme, companies in high-emitting industries will receive allowances that they can trade, creating a domestic market for emissions.
The system could also benefit Turkish exporters selling products such as steel and cement to the European Union. Under the bloc's carbon border levy, carbon costs already paid in Turkey can be taken into account when assessing emissions embedded in certain imported goods.
The programme has set specific targets for the scheme and renewable energy development. At least 180 industrial facilities are expected to report baseline emissions under the trading system by April 2027. The plan also aims to secure production licences for 1,800 megawatts of wind and solar capacity by early 2027.
Agriculture and land management are also included in the reform agenda. By 2028, the programme aims to help 225,000 farmers in water-stressed areas move towards crops that require less water. It also targets the designation of 50,000 hectares as carbon sinks, meaning areas of land that absorb carbon from the atmosphere.
These measures come as Turkey faces mounting pressure from water shortages, drought, extreme heat, wildfires and flooding in urban areas. The reform plan seeks to improve how risks are assessed and managed across areas such as water resources, ecosystems and public health.
For Turkey, securing the financing is only one part of the challenge. Much of the additional climate investment needed by 2030 is expected to come from private sources, making policy changes and financial regulation central to the effort. The agreement links those reforms with measurable targets across industry, energy and agriculture as the country works towards its 2053 net-zero goal.
