The funding combines a Climate-Focused Policy-Based Financing loan for the Türkiye Climate Action Acceleration Program (TCAAP) with supplemental financing under AIIB’s Energy, Food Security and Economic Resilience Facility. The two components are equal in amount. Turkey is a founding member of the bank.

The package is intended to help Turkey pursue its Second Nationally Determined Contribution, which sets a 2035 emissions target on the country’s path to net zero by 2053. Turkey is hosting the COP31 global climate summit in Antalya until November 20.

The financing comes as Turkey advances a new energy plan through 2040, targeting $500 billion in investment in energy infrastructure. The plan aims to reduce the country’s import bill and expand domestic resources, including gas from the Black Sea, alongside a fourfold increase in installed solar and wind capacity.

Energy and Natural Resources Minister Alparslan Bayraktar said last week that Turkey wants to strengthen its energy independence and eventually become energy independent. The country plans to raise installed wind and solar capacity fourfold to 175 gigawatts by 2040, and increase renewables’ share of installed electricity-generation capacity to 77%.

Turkey also aims to have 20 million electric vehicles on the road by 2040. Policies to improve energy efficiency are expected to generate $240 billion in savings, Bayraktar said. Energy think tank Ember says Turkey ranked fourth in Europe for EV sales last year, with 190,000 fully electric vehicles sold, equal to 17% of new car sales.