AIIB Grants Turkey Record $1.6 Billion Climate Financing Deal

The Asian Infrastructure Investment Bank (AIIB) and Turkey agreed to a record $1.6 billion financing package to support climate policy reforms. Announced during the COP31 climate conference in Antalya, the deal is the bank's largest climate policy-based financing package to date. The funding aims to help Turkey implement its Climate Law, scale sustainable finance, and attract the private investment necessary to reach a net-zero goal by 2053.

Specific targets under the agreement include establishing an emissions trading scheme with 180 reporting facilities by April 2027 and securing 1,800 megawatts of wind and solar capacity by early 2027. Additionally, the program will assist 225,000 farmers in transitioning to less water-intensive crops by 2028. Turkey estimates it needs $68 billion in additional climate investment by 2030 to mitigate threats from wildfires, floods, and drought.

During the conference, Azerbaijani Deputy Prime Minister Teymur Musayev praised Turkey's COP31 presidency for its focus on dialogue. Musayev highlighted Azerbaijan's own efforts, including a net-zero goal for 2060 and a target to add 6 GW of solar and wind power by 2030. He cautioned that nations must prioritize the full implementation of existing commitments, such as the Baku Finance Goal, to maintain confidence in the multilateral process.