According to the information provided by the bank, the EBRD is planning to support the Ministry of Industry and Technology of Turkiye (MoIT) in developing a Low Carbon Pathway (LCP), which will set out a roadmap for the progressive decarbonisation of the Turkish glass sector in line with the Turkish Government's sustainable development and decarbonisation goals.

CONTEXT:

European Green Deal (EGD) will have transformative effects on the EU Single Market which we have achieved a higher level of integration thanks to the Customs Union. As a candidate country and a Customs Union partner, EGD will also have significant effects on the economic and trade integration of Turkiye to the EU. In order to ensure compliance with the EGD and analyse its effects on Turkish industry, energy, transport and agriculture policies holistically, a Green Deal Working Group has been set up in February 2020 under the coordination of the Ministry of Trade with the involvement of the Presidency of Strategy and Budget, the Ministry of Treasury and Finance, the Ministry of Industry and Technology of Turkiye, the Ministry of Energy and Natural Resources, the Ministry of Environment and Urbanization, the Ministry of Agriculture and Forestry, the Ministry of Transport and Infrastructure and the Ministry of Foreign Affairs Directorate for EU Affairs. The Working Group is closely working with public and private sector stakeholders and has published the National Green Deal Action Plan for Turkiye in 16 July 2021. The Action Plan, which contains 32 objectives and 81 actions under 9 priority areas, foresees the development of a decarbonisation roadmap for energy intensive industries including glass.

On October 6, 2021, the "Draft Law Regarding the Approval of the Paris Agreement" was unanimously accepted in the General Assembly of the Turkish Grand National Assembly. With the President's decision (dated 7/10/2021 and numbered 4618) published in the Official Gazette, the Paris Agreement entered into force on 10 November 2021. The Turkish Grand National Assembly adopted the law enabling the Paris Agreement to enter into force and made a net zero carbon commitment in 2053.

In summary, the new growth strategy, which the EU announced on 11 December 2019, called the EGD, brought a low carbon economy model from industry to agriculture, and envisaged it to reshape its trade. It also announced an investment plan of 1 trillion euros towards its goal. This investment plan, which includes EU financial instruments, public and private sector investments, aims to finance the transformation of the economy for the next 10 years. The priorities of the EU in this process are to invest in environmentally friendly technologies, to support innovation in industry and to decarbonize the energy sector with a particular focus on transitioning to 100% renewable energy sources and enhancing energy efficiency in buildings--an area of significant relevance to the glass sector, given its pivotal role in construction, automotive, packaging, and renewable energy industries. Building on the foundations laid by the EGD, the European Commission introduced the Clean Industrial Deal in February 2025, a strategic initiative that provides a comprehensive framework for accelerating the decarbonisation of industrial sectors. This document is expected to guide the development of Low-Carbon Pathways (LCP) studies and support the EU's broader climate neutrality objectives.

The EU is Turkiye's largest trading partner. Therefore, this transformation concerns Turkiye very closely. Energy-intensive industries are in an indispensable position for the European economy as they supply products to various value chains. In this case, the decarbonisation and modernization of these sectors plays a key role in achieving the set target.

The global production of 150 million tonnes of glass annually is responsible for 0.3 per cent of global greenhouse gas (GHG) emissions (86 MtCO2e). Just under half of this glass (48 per cent) is container glass (for use in bottles and jars, etc.), 42 per cent is flat glass (for use in windows, doors, the automotive industry, mirrors and solar panels), 5 per cent is tableware and 6 per cent is used in other products (e.g. glass fibres and medical uses). Glass production involves melting raw materials such as silica sand, soda ash, and limestone at extremely high temperatures, resulting in substantial carbon dioxide emissions primarily from fuel combustion in furnaces. Although advancements in energy efficiency, recycling rates, and alternative fuels have been realized, the sector still faces considerable challenges in reducing its overall carbon footprint. To mitigate the risk of carbon leakage and align with evolving global climate policies, the EU plans to implement new taxes and carbon border adjustments impacting high-carbon industries. Given the glass industry's direct linkages to construction, automotive, and packaging sectors, its economic significance to Turkiye is substantial, contributing notably to national income, exports, and employment.

The glass industry has already started to work on energy efficiency and sustainability. A combination of technology and policy solutions could provide a pathway to glass sector to contribute to Turkiye's 2053 net zero commitment. The LCP offers the possibility to improve the understanding of the transition toward a green economy within the boundaries of sustainable development goals and national strategic priorities. It leverages quantitative and qualitative analysis, such as integrated assessment modelling, and provides insights on cross-sectoral synergies, sector specific challenges, and the implication in terms of energy supply and demand. It assesses power generation technologies' mitigation potential, the required enabling policies and actions, as well as the necessary financial and economic conditions. Applying such an approach to the glass sector would allow MoIT and other policymakers in Turkiye to better prioritise investment decisions given different plausible but diverging development scenarios. The LCP will be consistent with Paris Agreement objectives and help the Turkish Government policies and glass manufacturers to align their business strategy and operations accordingly.

PURPOSE:

The main purpose of the assignment is to develop a LCP for the glass sector in Turkiye in line with the Turkish Government's sustainable development and decarbonisation goals and in order to comply with EGD.

Proposed LCP study for glass sector is expected to focus on technological, financial and regulatory analysis and address following issues:

(a) Conduct a mapping and baseline assessment of the glass manufacturing sector in Turkiye to identify all operating plants, quantify their current GHG emissions and resource use, and benchmark their performance against relevant EU and Turkish Taxonomy thresholds. The assessment will serve as a foundation to define a sector-wide Low Carbon Pathway (LCP), by identifying key decarbonisation levers, investment needs, and technology gaps to support alignment with national and international climate targets;

(b) Develop emission projections of the sector by 2053 under
a. Business as Usual Scenario, if no action is taken;
b. Emissions reduction scenario in line with national targets;
c. Sectoral roadmaps

(c) Identify corresponding mitigating measures and important steps to be taken by the industry as a whole and by the individual actors along the value chain in order to ensure compliance with the Paris Agreement ("PA"), sectoral roadmaps as well as the national targets (e.g.net-zero emissions target of Turkiye). This will include an assessment of the technology gap within the domestic glass sector, and an evaluation of innovative or emerging technologies developed internationally (e.g., electric furnaces, hydrogen combustion, carbon capture solutions) that could be adapted and introduced to the Turkish context;

(d) Identify decarbonization technologies applicable to the glass sector, including existing, emerging, and under-development solutions across the entire production chain -- from raw material processing (e.g., soda ash, silica melting), furnace operation, forming and annealing processes, to recycling and cullet use. The assessment should also consider breakthrough technologies such as electric melting, hydrogen-fueled furnaces, and carbon capture solutions suitable for high-temperature operations;

(e) Analyse policy (regulatory) and investment (financial) drivers and barriers to the decarbonisation of the sector as well as recommendations;

(f) Engage with the Steering Committee and wider stakeholders on determining of market assumptions, performance benchmarks, identification and articulation of mitigation solutions and capex needs. This engagement should seek to build a sense of ownership for implementing the roadmap amongst industry representatives and affiliates.

The assignment, by critically analysing both the business-as-usual (BAU) scenario and an emission reduction scenario, will result in the development of a set of policy and technology recommendations to help understand the possible contribution of the sector towards the country's Nationally Determined Contributions (NDC) targets and provide clear indications about the priorities of investment and sustainable development for the sector towards a substantial decarbonisation in the mid to long-term future. The assignment will be developed in close cooperation with the Steering Committee (EBRD, MoIT and other key industry and government stakeholders) that will be identified early in the process.

Information on the investment amount not provided at the time of disclosure.

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