AIIB, Türkiye agree $1.6 billion climate reform financing package

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AIIB-Türkiye climate financing deal

Highlights

AIIB and Türkiye agreed on a $1.6 billion financing package to support Türkiye's climate law rollout, announced at COP31 in Antalya.
The package, AIIB's largest climate-focused policy-based program, targets sustainable finance, sectoral decarbonization, and climate resilience reforms across all 81 Turkish provinces.
In 2025, AIIB's climate financing hits a record $7.47 billion (71% of total), with Türkiye remaining AIIB’s second-largest market at $11.06 billion approved for 48 operations as of Oct. 24, 2026.

Financing package supports climate law rollout

As reported by Asian Infrastructure Investment Bank, the financing package is the bank’s largest climate-focused policy-based financing program to date and is designed to help Türkiye implement its climate commitments through policy and institutional reforms. The agreement is signed at COP31 in Antalya and backs execution of Türkiye’s Climate Law and its Second Nationally Determined Contribution.

The reforms are organized around three pillars. Sustainable finance includes putting Türkiye’s emissions trading system and green finance framework into operation, while sectoral decarbonization turns national targets into sector-specific measures through an updated mitigation strategy and action plan. The climate resilience pillar is intended to strengthen subnational adaptation planning and climate risk management in areas including water, ecosystems and health.

The program is led by the Government of Türkiye, with the Ministry of Treasury and Finance serving as the executing agency. It coordinates with the Ministry of Environment, Urbanization and Climate Change and its Directorate of Climate Change, while a broader group of ministries and regulatory bodies covering banking, capital markets, energy markets, civil aviation and forestry also takes part in delivery across all 81 provinces.

Broader role in Türkiye and AIIB climate lending

By linking climate objectives with fiscal policy, financial regulation and sector planning, the program is intended to embed climate action more deeply across government and support a country-led platform for coordination with development partners and investors. AIIB says the package combines a Climate-Focused Policy-Based Financing loan for the Türkiye Climate Action Acceleration Program with supplemental financing under its Energy, Food Security and Economic Resilience Facility, split in equal amounts.

Konstantin Limitovskiy, AIIB’s Chief Investment Officer 2, says the bank is supporting Türkiye’s implementation-focused climate agenda at COP31 and describes the financing as a milestone in the lender’s climate policy work. The deal also expands AIIB’s presence in Türkiye, where it already has exposure to green energy, transport, urban resilience and disaster response projects.

AIIB launched its Climate-Focused Policy-Based Financing facility in 2024 to help members pursue national climate transition goals. In 2025, the bank’s climate financing reaches a record $7.47 billion, equal to 71% of total approved financing, while Türkiye remains a founding member and AIIB’s second-largest market by cumulative approved financing, with $11.06 billion approved for 48 operations as of Oct. 24, 2026.

We have previously noted how Europe’s inflation debt trade-offs are reshaping policy thinking around long-term investment and resilience.

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