EBRD-led roadmaps pave way for decarbonisation in Türkiye

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  Türkiye launches low-carbon pathways for hard-to-abate sectors
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  Focus on steel, cement, aluminium and fertiliser sectors
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  Low-carbon pathways to provide technology, finance and policy roadmaps for public and private stakeholders 

Türkiye has launched its low-carbon pathways (LCPs) initiative, a project supported by the European Bank for Reconstruction and Development (EBRD) focusing on decarbonisation in the steel, cement, aluminium and fertiliser sectors.

Based on extensive engagement with sector associations and relevant stakeholders, the LCPs provide clear signals to domestic and international players about the kind of technology and green financing that is needed to accelerate the country’s decarbonisation.

The LCPs will also support infrastructure development, providing guidance on issues such as logistics, grids, carbon storage, renewable energy,and green hydrogen.

Türkiye has committed to a net-zero target of 2053, which makes industrial decarbonisation a must. The LCPs show that, to decarbonise the selected four sectors, investments of more than US$ 70 billion are needed to reduce emissions by 135 million tonnes CO2 annually – compared to a business-as-usual scenario.

The LCPs also provide policy recommendations to create an enabling market environment for industrial decarbonisation in Türkiye, such as the establishment of a Turkish Emissions Trading System that is in line with the EU regulations. The four sectors covered by the LCPs also come under the EU’s Carbon Border Adjustment Mechanism. By following the roadmaps, Türkiye’s industrial sectors will be able to increase its export competitiveness and attract greater investment, while reducing its dependence on imported fossil fuels. Reduced pollution and new jobs are also key goals of the LCPs.

The EBRD has long been a leader in green investments in Türkiye, with over half of the Bank’s record investment in 2023 going towards investments supporting the green transition. The LCPs serve as an action plan for the private sector, highlighting the need for a sustainable decarbonisation, as well as sharing the technologies needed to achieve green goals.

EBRD Managing Director for Türkiye, Arvid Tuerkner, welcomed the launch of the LCP initiative. “Türkiye has set ambitious climate targets that will require great efforts on the private and the public side, which the EBRD stands ready to support,” he explained. “Our commitment to the green transition remains solid, and we are pleased to see that the private sector in Türkiye has a great appetite for green investments. We are confident that the LCPs will provide the guidance needed for both private and public stakeholders to accelerate the country’s path towards a greener future.”

Türkiye is also developing a dedicated business platform aimed at mobilising investments needed to implement the roadmaps set out by the LCPs, bringing together project developers, technology providers, commercial financiers and investors. Providing a comprehensive approach to climate planning, regulatory support and coordinated investor outreach, the platform will enable knowledge sharing, and accelerate project development.

The EBRD is a key investor in Türkiye, with almost €19.5 billion invested in 440 projects and trade facilitation lines since 2009, most of which are in the private sector.