WASHINGTON DC — The World Bank has approved today a Guarantee in the amount of EUR 360 million (US$ 389.5 million equivalent) for the “Financing Adaptation for Growth Project” in Türkiye. This project aims at enhancing firm resilience and adaptation to the impacts of changes in climate, and underscores the World Bank’s commitment to supporting sustainable development and climate resilience in Türkiye.
Türkiye is highly vulnerable to natural disasters, requiring investments for resilience and adaptation. In recent years, the country has experienced significant earthquakes and climate-related events, including floods, droughts, and wildfires, which have negatively impacted communities, firms, and economic activities. The project will address these challenges by mobilizing up to EUR 600 million in private capital to support the implementation of strategic adaptation measures by the country’s firms. The initiative is built around two main innovations:
Enhancing climate resilience of firms: The project will strengthen firms’ capacity to cope with the increasing frequency and severity of climate-related disasters, both through financing and the development of an innovative Adaptation Toolkit that will allow firms to assess their vulnerability to changes in climate as well as to identify adaptation needs. By implementing resilience-building measures and supporting firms in adapting proactively to changes in climate, the project will help reduce vulnerabilities and protect both communities, jobs, and livelihoods. This initiative will serve as a pilot project to develop Türkiye’s adaptation finance market, with potential for future scale-up.
Mobilizing Private Capital: Aligned with the World Bank Group’s Maximizing Finance for Development approach, the project will facilitate the mobilization of private sector investment to support firm-level resilience. Climate adaptation finance is currently insufficient, and this project aims to demonstrate commercial viability of financing resilience investments by using an IBRD guarantee for de-risking. This effort is expected to play a key role in scaling up climate action while contributing to sustainable economic growth.
“Like most Mediterranean countries, Türkiye is highly vulnerable to heatwaves, droughts, floods and extreme windstorms, which in recent years have affected the country with increasing frequency and intensity and caused significant economic losses. This project focuses on those vulnerabilities and seeks to mobilize private capital to support the implementation of climate adaptation measures by firms. By strengthening the resilience of businesses, we are both safeguarding livelihoods and ensuring sustainable economic growth; and we are both preserving existing jobs and creating new ones” said Humberto Lopez, World Bank Country Director for Türkiye.
The Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB) will lead the implementation of the project. TSKB will mobilize up to EUR 600 million in long-term commercial financing with support of the IBRD guarantee, utilizing these third-party funds to establish a financing line for eligible sub-loans. The project will explicitly target women-inclusive businesses to address barriers to finance and enhancing their climate resilience.
Türkiye’s new Climate Change Adaptation Strategy and Action Plan (2024-2030) emphasizes the importance of raising awareness and mobilizing resources for climate adaptation. The World Bank’s project aligns with these national priorities, providing financial and technical support to achieve sustainable growth and resilience.
The World Bank remains committed to supporting Türkiye in its journey towards sustainable development and climate resilience, ensuring a safer and more prosperous future for its citizens.
