The Asian Infrastructure Investment Bank (AIIB) has signed its largest climate policy-based financing package to date, committing US$1.6 billion to help Türkiye implement reforms spanning sustainable finance, sectoral decarbonisation and climate resilience.
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Signed at the COP31 climate summit in Antalya on 12 November, the package supports Türkiye’s Climate Law and second nationally determined contribution, which sets a 2035 emissions target on its pathway towards net zero by 2053.
The China-headquartered multilateral lender’s package comprises a US$800 million Climate-Focused Policy-Based Financing (CPBF) loan for the Türkiye Climate Action Acceleration Program and an equal amount in supplemental financing under its Energy, Food Security and Economic Resilience Facility, said AIIB in a statement.
The CPBF instrument provides government budget support linked to climate-related policy and institutional reforms, rather than financing individual infrastructure projects. The supplemental loan aims to protect those reforms from fiscal pressures arising from the Middle East conflict, which has increased Türkiye’s energy import bill. Both loans are linked to the same 12 prior policy actions, covering carbon markets, green finance, renewable energy and climate resilience, with shared targets to track implementation through 2028.
“With COP31 focused on implementation, we are proud to support Türkiye’s commitment to advancing vital climate reforms,” said Konstantin Limitovskiy, AIIB’s chief investment officer.
The programme’s sustainable finance pillar will support the operationalisation of Türkiye’s emissions trading system and green finance framework. Its sectoral decarbonisation pillar will translate national emissions goals into sector-specific measures through an updated national mitigation strategy and action plan.
The climate resilience pillar will strengthen subnational adaptation planning and climate risk management in water, ecosystems and health. The programme’s Iimplementation will cover all 81 provinces
Türkiye’s treasury and finance ministry will coordinate implementation with its environment ministry’s Directorate of Climate Change, which leads the technical agenda. The programme also aims to help the government coordinate development partners and investors around national climate priorities.
AIIB introduced CPBF in 2024 to help members achieve their national climate transition objectives. Earlier operations include a US$250 million loan approved in December 2024 for Uzbekistan’s climate transition programme, alongside US$250 million from the Asian Development Bank. The Uzbek programme supports climate governance, adaptation and low-carbon development.
Türkiye is AIIB’s second-largest market by cumulative approved financing, with US$11.06 billion across 48 operations as of 24 October 2026. The bank’s climate financing reached US$7.47 billion in 2025, representing 71 per cent of total approved financing.
