According to the AIIB, the objective of the Turkiye Climate Action Acceleration Program (TCAAP) is to support the implementation of Turkiye's Second Nationally Determined Contribution (NDC 3.0) and Climate Law, through policy and institutional reforms in sustainable finance, sectoral decarbonization, and climate resilience.

DESCRIPTION

Turkiye has delivered one of the most sustained economic transformations among emerging economies, yet its growth model remains structurally dependent on fossil fuel imports, making energy the single largest driver of its current account deficit and a source of growing external vulnerability. As the world's 17th largest greenhouse gas (GHG) emitter, Turkiye faces mounting external pressures on two fronts. The European Union's Carbon Border Adjustment Mechanism (CBAM) threatens the competitiveness of its most carbon-intensive exporting sectors in the EU market, while the current situation in the Middle East has widened Turkiye's energy import bill and reduced fiscal buffers. At the same time, Turkiye faces acute physical climate risks across water, ecosystems, and health. Turkiye has responded with its most substantive climate legislative framework to date, anchored in Climate Law No. 7552 and NDC 3.0.

A critical gap nonetheless persists: the regulatory, fiscal, and institutional architecture needed to operationalize the Climate Law and channel capital toward NDC targets remains incomplete. The TCAAP addresses this gap directly, financing the policy and institutional reforms, coordinated through the Ministry of Treasury and Finance (MOTF) and designed in deliberate complementarity with ongoing partner programs, that translate Turkiye's legislative commitments into measurable climate outcomes.

A Supplemental Financing of USD800 million under AIIB's Energy, Food Security and Economic Resilience Facility complements the Program by protecting the reform momentum against the fiscal pressure created by the ongoing tension in the Middle East. It disburses against the same 12 prior actions and the same results matrix as the parent CPBF, bringing combined AIIB financing to USD1,600 million.

The TCAAP comprises 12 prior actions across three mutually reinforcing pillars:

• Pillar 1 -- Operationalizing the Carbon Market and Green Finance Regulatory Measures:
  Operationalize Turkiye's emissions trading system (ETS), establish a green finance regulatory architecture, and mobilize public and private capital toward low-carbon and climate-resilient activities.
• Pillar 2 -- Accelerating Sectoral Decarbonization Pathways:
  Accelerate implementation of mitigation policies across energy, industry, transport, and monitoring frameworks, translating NDC commitments into binding sector-specific regulatory and institutional action.
• Pillar 3 -- Institutionalizing Adaptation Across Water, Nature, and Health:
  Institutionalize subnational climate governance, strengthen water resilience, expand carbon sink coverage, and embed climate risk into national health systems across 81 provinces.

Proposed amount of AIIB financing (USD m): USD1,600 million
• CPBF (TCAAP): USD800 million
• ERF (TCAAP-SF): USD800 million

AIIB Team Leader:

Nat Pinnoi - Senior Investment Officer
Email: nat.pinnoi@aiib.org

Borrower - Government of Turkiye:

Bengü Aytekin - Deputy Director General of Foreign Economic Relations, Ministry of Treasury and Finance, Republic of Türkiye
Email: bengu.aytekin@hmb.gov.tr

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html