The Asian Infrastructure Investment Bank (AIIB) and the Republic of Türkiye today agreed on a USD1.6 billion financing package to support policy and institutional reforms that will help Türkiye implement its climate commitments.
It is AIIB’s largest climate-focused policy-based financing package to date. Signed at COP31, hosted by Türkiye in Antalya, it will support implementation of Türkiye’s Climate Law and its Second Nationally Determined Contribution, which sets a 2035 emissions target as part of the country’s pathway to net zero by 2053.
The reforms are structured around three pillars. Sustainable finance includes operationalizing Türkiye emissions trading system and green finance framework. Sectoral decarbonization translates national targets into sector-specific action through an updated national mitigation strategy and action plan. The third pillar, climate resilience, strengthens subnational adaptation planning and climate risk management in areas including water, ecosystems and health.
The program is led by the Government of Türkiye. The Ministry of Treasury and Finance, as the executing agency, coordinates implementation with the Ministry of Environment, Urbanization and Climate Change and its Directorate of Climate Change, which leads the technical agenda across all three pillars. Delivery involves multiple ministries and regulatory and technical agencies, including authorities responsible for banking, capital markets and energy markets, as well as civil aviation and forestry. It also extends to local climate governance across all 81 provinces.
By integrating climate objectives into fiscal policy, financial regulation and sectoral planning, the program supports the government’s reform agenda and embeds climate action across government. It also strengthens the foundations for a country-led platform through which Türkiye can coordinate development partners and investors around its climate priorities.
Announcing the financing, Konstantin Limitovskiy, AIIB’s Chief Investment Officer 2, said: “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.”
The package combines a Climate-Focused Policy-Based Financing (CPBF) loan for the Türkiye Climate Action Acceleration Program (TCAAP) with supplemental financing under AIIB’s Energy, Food Security and Economic Resilience Facility (TCAAP-SF) in equal amounts.
The program deepens AIIB’s engagement in Türkiye, building on the Bank’s portfolio in green energy, transport, urban resilience and disaster response, and helps align future investment with the country’s climate objectives.
AIIB launched its CPBF facility in 2024 to help members achieve their national climate transition objectives.
In 2025, AIIB’s climate financing reached a record USD7.47 billion, accounting for 71% of its total approved financing.
Türkiye is a founding member and AIIB’s second-largest market by cumulative approved financing. As of Oct. 24, 2026, AIIB had approved a total of USD11.06 billion for 48 operations in the member. Of this amount, USD3.89 billion was approved for nine operations between Jan. 1 and Oct. 24, 2026, with USD3.69 billion (94.9%) classified as climate finance.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
