World Bank Approves EUR 600 Million Loan Guarantee

The World Bank has approved a EUR 600 million credit guarantee to support Turkish exporters in reducing carbon emissions from their production processes. The approved EUR 600 million credit guarantee will be used to support the reduction of carbon emissions arising from production processes, enabling Turkish exporters to maintain their competitiveness and protect their export markets. The Turkey Green Export Project, to be implemented under this framework, will help provide affordable and long-term financing to exporters investing in green and climate-resilient solutions such as the development of machinery, equipment, heating and cooling systems, and the reduction or recycling of waste. Given that the European Union will apply tariffs on carbon-intensive products from 2026 onwards, reducing the carbon footprint of exporters producing emission-intensive products is important.

"Will mobilize long-term commercial financing"

World Bank Group Country Director for Turkey Humberto Lopez, pointing to the importance of exporters' success for the Turkish economy, stated: "Green transformation is one of the government's top priorities. The World Bank will contribute globally to the transition to a low-carbon future. We are pleased to support these efforts that will also increase the competitiveness of companies and the country."

Lopez, noting that long-term financing is critical for investments that will enable a seamless transition to the green economy needed, continued as follows:

"The Turkey Green Export Project will mobilize long-term commercial financing through a credit guarantee of up to EUR 600 million to be provided to Eximbank, aimed at mobilizing up to EUR 1 billion in international private capital, all of which will be used to support exporters' green transformation efforts through commercial credits with approximately 10-year terms. This financing will offer better terms and costs compared to conventional market options and will provide the much-needed momentum for exporters to reduce their carbon emissions and increase green exports." World Bank Project Team Leader Gunhild Berg also emphasized the importance of the project for financing long-term, sustainable and green economic growth, stating: "The guarantee instrument also presents a new approach in supporting exporters to adapt to climate-related transition risks and to take advantage of the opportunities presented by increasing global demand for green products and services." Source