Economic activity

EXCLUSIVE Turkey to receive € 3.1 billion in loans to support Paris climate goals -sources

  • Turkey delayed ratification of climate deal as a “developed” nation
  • The loans aim to help it achieve its green energy goals
  • According to source, planned loans have encouraged Turkey to ratify
  • No signed agreement yet, sources say

ANKARA, Oct. 14 (Reuters) – Turkey is set to receive loans worth € 3.1 billion to help it meet clean energy targets set in the Paris climate agreement in part of a planned deal funded by the World Bank, France and Germany, sources close to the plan said.

Turkey last week became the latest country in the group of major G20 economies to ratify the Paris agreement, after years of demanding that it be first reclassified as a developing country, which would entitle it to funds and technological assistance.

Under a memorandum of understanding to be signed this month ahead of the UN climate summit in Scotland, Ankara would receive large international loans even without obtaining the requested change of status, the sources said.

The bulk of the money would come from the World Bank, which would provide 2 billion euros in funding, with France putting forward one billion euros and Germany just over 200 million euros, said three sources.

“An agreement on the amount and the modalities has already been reached and it is for this reason that Turkey has ratified the Paris agreement,” said a source who was aware of the talks.

Four sources said the full memorandum had not yet been approved and warned that nothing was certain until all parties signed. The sources spoke on condition of anonymity due to the sensitivity of the ongoing talks.

The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation, the private sector investment arm of the World Bank, are also involved to help boost the role of the private sector for green energy in Turkey. .

The planned support for Turkey was reported by Politico last week, but the amount and details of the loans were not disclosed before.

Turkey’s environment ministry did not immediately comment. A German government source, who could not confirm the figure of 3.1 billion euros, said the talks are continuing. “There is no memorandum of understanding at the moment,” added the German source.

A World Bank spokesperson made no comment on support for the loan, but said he welcomed Turkey’s ratification of the deal and looked forward to more details on its plan to achieve her goals. “In this regard, we are ready to step up our support to Turkey through impactful projects,” the spokesperson said.


Turkey signed the Paris Agreement in April 2016, but has long resisted ratification, arguing that it should not be considered a developed country for the purposes of the agreement and was responsible for a very small share of historical carbon emissions.

Announcing Turkey’s surprise change of mind last month, President Tayyip Erdogan told the United Nations General Assembly that countries with “historic responsibility” for climate change should do the most.

When it unanimously approved the ratification on October 6, parliament said Turkey was doing so as a developing country, although the UN reported no changes. Read more

The promise of funding could resolve this impasse.

France will provide several hundred million euros via its development agency AFD, said a French diplomatic source.

French President Emmanuel Macron has had a murky relationship with Erdogan for years, but the two leaders have toned down their criticism in recent months.

A French government environment official said French and German environment ministers discussed the issue in June, and Turkey recently stepped up a gear and ratified Paris “against all odds”.

The Paris agreement aims to limit the rise in global average temperature to well below 2 degrees Celsius above pre-industrial levels and to make efforts to limit it to 1.5 degrees.

The already recorded 1.1 degree Celsius warming was enough to trigger catastrophic weather conditions, including recent forest fires in Turkey, Greece and the United States.

Some of the worst forest fires in Turkish history have killed eight people and devastated tens of thousands of hectares of forest in the southwest this summer. The fires were closely followed by floods that killed at least 77 people in the north.

Reporting by Jonathan Spicer in Ankara, Dominic Evans in Istanbul, John Irish and Elizabeth Pineau in Paris, Elizbeth Piper in London and Markus Wacket in Berlin; Editing by Gareth Jones

Our Standards: The Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published.