In a significant move towards Türkiye's green transition, the European Bank for Reconstruction and Development (EBRD) has extended a €25 million loan. This loan is set to play a crucial role in supporting green investment projects across the country. It is being issued under the EBRD's Türkiye Green Economy Financing Facility, marking an important milestone in Türkiye's efforts to embrace sustainable development.

Unlocking Green Financing for Türkiye's Future

Loan Details and Purpose

The €25 million loan is being provided to Türkiye's Garanti BBVA Leasing, which will then on-lend the funds to sub-borrowers. These sub-borrowers are engaged in implementing green investments such as energy efficiency, renewable energy, and climate resilience measures. This direct support for green initiatives is expected to have a significant impact on Türkiye's transition to a more sustainable economy.Energy efficiency measures are particularly crucial as they help reduce energy consumption and lower carbon emissions. Renewable energy projects, on the other hand, offer a clean and sustainable alternative to traditional energy sources. By financing these projects, the EBRD is helping Türkiye move towards a greener future.

Technical Cooperation and Gender Equality

The project also includes a technical cooperation package that focuses on gender-responsive activities. This is an important aspect as it aims to ensure equal access to climate finance for both men and women. A gender baseline assessment will be conducted to understand the current situation and identify areas for improvement. Awareness-raising activities will also be carried out to help address gender-specific supply and demand obstacles.By including gender equality in the green investment projects, Türkiye is taking a step forward in creating a more inclusive and sustainable society. This approach recognizes the importance of involving all stakeholders in the transition to a green economy.

Importance for SMEs and Leasing Companies

Addressing climate change is a national priority for Türkiye, and including leasing companies in the diversification of green financing is essential. Leasing companies provide innovative financial solutions that make renewable energy systems, energy-efficient technologies, and low-carbon machinery more affordable for small and medium-sized enterprises (SMEs).This collaboration between the EBRD and Garanti BBVA Leasing allows SMEs to access the necessary funds to invest in green and renewable energy. It helps them reduce their environmental impact while also improving their competitiveness in the market.

Partnership and Impact

The EBRD's Deputy Head of Türkiye, Oksana Yavorskaya, welcomed this partnership, emphasizing its role in accelerating the adoption of sustainable practices across sectors. By bridging the financing gap for industries transitioning to green operations, leasing companies play a vital role in driving the green transition.Selahattin Güldü, General Manager of Garanti BBVA Leasing, expressed his delight in adding a new facility to their longstanding relationship with the EBRD. The green loan received under the EBRD's GEFF programme will be used to finance many energy-saving projects for SMEs in the country.Garanti BBVA Leasing, established in 1990 and a fully owned subsidiary of one of Türkiye's largest financial institutions, is well-positioned to make a significant contribution to Türkiye's green transition.The EBRD, as one of Türkiye's key investors, has committed more than €21 billion through 465 projects and trade finance limits since 2009, with the majority of it in the private sector. This ongoing support demonstrates the EBRD's commitment to Türkiye's development and its role in driving sustainable growth.