The European Bank for Reconstruction and Development (EBRD) has unveiled the Turkiye GEFF II, a transformative initiative aimed at advancing Turkiye’s Green Economy Transition. Building upon the success of the previous Turkiye Green Economy Financing Facility (GEFF), this new framework allocates up to EUR 1.25 billion in EBRD financing to eligible private sector partner financial institutions (PFI).
Turkiye GEFF II extends the legacy of its predecessor, targeting commercial, public, and residential green economy investments in alignment with the EBRD’s Green Economy Transition Approach. The framework aims to enhance PFIs’ capabilities by introducing new eligible green project categories, such as sustainable tourism, transport, agriculture, nature and biodiversity, including the blue economy, and working capital for end-beneficiaries engaged in certified sustainable activities.
The Turkiye GEFF II is designed to facilitate a transition towards environmentally sustainable, low-carbon, and climate-resilient practices in Turkiye. By preventing the economy from adopting carbon-intensive and environmentally damaging pathways, all proceeds under this framework must contribute to projects that qualify for a 100% Green Economy Transition.
Private PFIs, including local banks and leasing companies in Turkiye, are eligible to participate in the Turkiye GEFF II. EUR 1.25 billion has been allocated to support green investments under this framework.
The Turkiye GEFF II aims to provide PFIs access to long-term financing, filling a gap in commercial sources. It also includes policy dialogue engagement with BRSA to integrate transition planning skills into the Turkish banking sector, aligning with national and international climate regulations.
Categorized as Financial Institutions (FI), PFIs under this framework will adhere to EBRD’s environmental and social (E&S) requirements. Beneficiaries must comply with national E&S standards and the eligibility criteria for various renewable energy projects. PFIs will report annually on sub-projects and their Green Economy Transition benefits.
The Turkiye GEFF II will be supported by an extensive Technical Cooperation package, fostering the implementation, disbursement, and market development of the facility. Activities include facility set-up, market awareness, capacity building, toolkit development, and verification of sub-projects, ensuring a sustainable and impactful green investment market.
This exploratory initiative underscores EBRD’s commitment to catalyzing Turkiye’s transition to a green and sustainable economy, fostering innovation and resilience in various sectors.
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