AIIB’s largest climate policy-based financing package will advance emissions trading, sectoral decarbonisation and adaptation planning, while supporting Türkiye’s efforts to align future investments with national climate priorities.
The Asian Infrastructure Investment Bank (AIIB) and Türkiye signed a $1.6 billion financing package at the COP31 climate summit in Antalya on November 12 to support policy and institutional reforms aimed at meeting the country’s climate commitments.
The agreement, approved by AIIB’s Board of Directors on October 22, 2026, will support the implementation of Türkiye’s Climate Law and its Second Nationally Determined Contribution (NDC), which sets an emissions target for 2035 as part of the country’s efforts to achieve net-zero emissions by 2053.
The package is AIIB’s largest climate policy-based financing arrangement to date and focuses on sustainable finance, reducing emissions across economic sectors and strengthening resilience to climate change.
The financing comprises two equal components: a Climate-Focused Policy-Based Financing (CPBF) loan for the Türkiye Climate Action Acceleration Program (TCAAP) and supplemental financing through AIIB’s Energy, Food Security and Economic Resilience Facility (TCAAP-SF).
Konstantin Limitovskiy, AIIB’s Chief Investment Officer for Public Sector (Region 2) and Project and Corporate Finance (Global) Clients, said the agreement reflected the bank’s support for Türkiye’s climate reform agenda.
“With COP31 focused on implementation, we are proud to support Türkiye’s commitment to advancing vital climate reforms. This financing represents AIIB’s largest climate policy-based financing package to date, and we look forward to contributing to Türkiye delivering on its climate ambitions,” he said.
The programme is structured around three pillars, beginning with sustainable finance, which includes making Türkiye’s emissions trading system operational and implementing its green finance framework.
The second pillar focuses on sectoral decarbonisation, translating national emissions targets into action across individual sectors through an updated national mitigation strategy and action plan.
The third aims to strengthen climate resilience by improving adaptation planning at the subnational level and climate risk management in areas including water, ecosystems and public health.
The Government of Türkiye will lead the programme, with the Ministry of Treasury and Finance serving as the executing agency.
The ministry will coordinate implementation with the Ministry of Environment, Urbanization and Climate Change and its Directorate of Climate Change, which will oversee the technical agenda across all three pillars.
Other government ministries, regulatory bodies and technical agencies will also participate, including authorities responsible for banking, capital markets, energy markets, civil aviation and forestry.
The initiative will extend to local climate governance across all 81 provinces of Türkiye.
According to AIIB, the programme seeks to integrate climate objectives into fiscal policy, financial regulation and sectoral planning, while strengthening coordination across government institutions.
It is also intended to establish the foundations for a country-led platform through which Türkiye can coordinate development partners and investors around its national climate priorities.
The agreement expands AIIB’s involvement in Türkiye, where the bank has already financed projects in green energy, transport, urban resilience and disaster response.
The bank said the new programme would also help align future investments with the country’s climate objectives.
AIIB introduced its Climate-Focused Policy-Based Financing facility in 2024 to support member countries in achieving their national climate transition objectives.
In 2025, the bank’s climate financing reached a record $7.47 billion, accounting for 71% of its total approved financing.
Türkiye, a founding member of AIIB, is the bank’s second-largest market in terms of cumulative approved financing.
To date, AIIB has approved 48 projects in Türkiye, representing a total financing commitment of $11.06 billion.
As of October 24, 2026, the bank had approved $3.89 billion across nine projects in Türkiye during the year.
Of that amount, $3.69 billion was classified as climate finance, representing 94.9% of total approved financing for the year.
AIIB, which began operations in 2016, is a multilateral development bank focused on infrastructure investment and sustainable economic development.
The bank has 111 approved members worldwide, $100 billion in capitalisation and AAA credit ratings from major international rating agencies.
It works with development partners to mobilise investment in infrastructure and other productive sectors, with the stated objectives of supporting sustainable economic development and improving regional connectivity.
