The European Investment Bank (EIB) has restarted financing activities in Türkiye by signing two new lending agreements totaling €200 million ($230 million). This funding will support clean and renewable energy, energy efficiency, climate finance, and green jobs across the country. The financing marks the bank’s renewed engagement with Türkiye after several years. It aims to help businesses invest in lower-carbon operations while improving competitiveness and resilience.

The agreements were made with the Development and Investment Bank of Türkiye (TKYB) and Türk Eximbank. Each bank will receive €100 million to distribute funding to small and medium-sized enterprises (SMEs) and mid-sized companies. The financing will support investments that reduce emissions, improve energy security, and aid Türkiye's shift toward a more sustainable economy.

Focus on Renewable Energy and Industrial Competitiveness

This funding is expected to support projects focused on renewable energy generation, energy efficiency improvements, climate adaptation measures, and supply-chain resilience. This initiative comes as Turkish businesses face growing pressure to meet environmental standards in export markets, especially in the European Union.

Turkish Treasury and Finance Minister Mehmet Şimşek welcomed the renewed cooperation. He described it as an important step for businesses to improve efficiency and invest in cleaner energy solutions. He stated that this financing shows practical collaboration between Türkiye and the EU in promoting sustainable economic growth and boosting industrial competitiveness.

The EIB noted that access to long-term financing is still a major challenge for many companies that want to improve operations and reduce environmental impacts. By partnering with established Turkish financial institutions, the bank aims to increase access to capital for businesses across various sectors and regions.

Local Banking Partners to Distribute Funding

A key part of the financing package is the role of TKYB and Türk Eximbank in distributing funds to businesses. Both institutions have significant experience in supporting industrial development and export-oriented companies, making them vital channels for reaching firms that may struggle with financing.

EIB Vice-President Robert de Groot said these agreements mark a new phase of cooperation between the EIB and Türkiye. During his first visit to the country, he highlighted that working with Turkish banks would help ensure funding reaches SMEs and mid-caps throughout Türkiye, assisting their transition toward more sustainable and resilient business models.

According to the EIB, investments financed under this program are expected to lead to lower emissions, improved energy efficiency, and broader economic growth. This initiative also aligns with efforts to strengthen supply chains and bolster resilience against future economic and environmental challenges.

Supporting Türkiye’s Green Transformation

TKYB Chief Executive Officer Ibrahim Halil Öztop stated that this financing will aid Türkiye’s long-term development goals by backing investments in renewable energy and energy efficiency. He added that this agreement would further strengthen the cooperation between the Turkish development bank and the EIB while creating both environmental and economic benefits.

This funding comes at a time when governments and businesses are increasing investments in decarbonisation and sustainable infrastructure. For Turkish companies, access to affordable climate-related financing is becoming increasingly vital as international markets enforce stricter sustainability requirements.

The EIB’s renewed lending activity is therefore seen as both an economic and environmental measure. It helps businesses respond to changing market conditions while supporting national climate goals.

Exporters Face Growing Environmental Requirements

For Türk Eximbank, this financing carries significant trade implications. Exporters must increasingly show compliance with environmental standards and emissions regulations, particularly when dealing with European markets.

Türk Eximbank Chief Executive Officer Ali Güney noted that this agreement reflects international trust in Türkiye’s green transition. He said the financing would help exporters meet the environmental requirements set by key trading partners and improve their competitiveness in global markets.

Güney pointed out that Türk Eximbank's total international funding for green transformation projects has now reached around $1.9 billion. The institution plans to keep collaborating with international financial organizations to support sustainable growth and facilitate access to long-term financing for exporters.

Reconstruction and Sustainable Infrastructure Discussions

Along with the financing agreements, EIB representatives discussed future cooperation with Turkish government officials in areas like sustainable transport, infrastructure development, and support for cleaner business practices.

The delegation also visited Hatay, one of the provinces hardest hit by the 2023 earthquakes. The EIB is currently assisting reconstruction efforts with a €400 million financing package focused on drinking water and wastewater infrastructure. This program is part of broader European Union assistance aimed at restoring essential services and enhancing resilience in affected regions.

Projects funded under this initiative are expected to improve infrastructure quality, reduce water losses, and prepare for future environmental and natural disasters.

EU Ambassador Designate to Türkiye Aivo Orav said the renewed cooperation shows how the EU and Türkiye can join forces to support economic transformation, strengthen business competitiveness, and promote sustainable infrastructure development.

The latest financing package connects climate action, industrial growth, and post-earthquake reconstruction efforts. For both Türkiye and the European Union, these agreements create a renewed investment framework aimed at supporting lower emissions, better export performance, and more resilient infrastructure in the future.