The agreement, signed during the United Nations Climate Change Conference (COP31) in Antalya, represents the largest climate-focused policy-based financing package approved by the Beijing-based multilateral development bank. The funding is intended to help Türkiye implement its Climate Law and advance its Second Nationally Determined Contribution, which establishes a 2035 emissions target as part of the country's commitment to achieving net-zero emissions by 2053.
The financing is structured around three principal areas: sustainable finance, sectoral decarbonisation and climate resilience. Under the sustainable finance component, Türkiye will work towards operationalising its emissions trading system and strengthening its green finance framework to encourage investment in environmentally sustainable activities.
The sectoral decarbonisation programme will translate national climate commitments into practical measures through an updated mitigation strategy and action plan. Meanwhile, the resilience component will strengthen local adaptation planning and improve climate-risk management across areas including water resources, ecosystems and public health.
The package comprises two equally sized financing components: a Climate-Focused Policy-Based Financing loan under the Türkiye Climate Action Acceleration Programme and supplementary financing through AIIB's Energy, Food Security and Economic Resilience Facility.
Implementation will be coordinated by Türkiye's Ministry of Treasury and Finance alongside the Ministry of Environment, Urbanisation and Climate Change and other relevant regulatory and technical institutions. The programme also extends climate governance responsibilities across all 81 provinces, bringing local authorities into the country's broader transition framework.
The agreement comes as governments increasingly seek financing arrangements that connect environmental commitments with economic development, financial regulation and infrastructure investment.
For Türkiye, the funding could strengthen investor confidence in its climate policy framework while supporting the development of financing mechanisms capable of attracting private capital into sustainable infrastructure and industrial transformation.
AIIB's climate financing reached a record $7.47 billion in 2025, representing 71% of its total approved financing. The latest agreement further reinforces the bank's expanding role in financing climate-related development across its member economies.
The effectiveness of the package will ultimately depend on how quickly the reforms translate into measurable emissions reductions, stronger climate resilience and increased investment in sustainable economic infrastructure.
