(Finance) – An agreement from 100 million euros for Turkey’s sustainable recovery, in particular of the energy sector infrastructures of the areas affected by the earthquake of february 2023and to contribute to the country’s climate resilience objectives. The agreement signed today provides for a new investment of 50 million euros from the Italian Climate Fund, managed by Cassa Depositi e Prestiti (CDP) on behalf of the Ministry of the Environment and Energy Security (MASE) in favor of the Industrial Development Bank of Türkiye (TSKB).
To the financing of the Italian Climate Fund a further 50 million is added by the French Development Agency (Agence Française de Développement – AFD)), granted through parallel co-financing within the Joint European Financiers for International Cooperation (JEFIC) platform, created with the aim of promoting the sharing of co-financing initiatives, in which several European development finance institutions participate.
The operation – explains the note – falls within the scope of CDP’s mandate to manage the Italian Climate Fund, established in 2022 by the Italian Government at the Ministry of the Environment and Energy Security in order to strengthen the global commitment to combating climate change by offering financing linked to specific environmental objectives to partner countries of the Italian International Cooperation System.
Specifically, the collaboration with TSKB and AFD will aim to build and rehabilitate infrastructures for the production of electricity from renewable sources, thus contributing to the containment of the country’s CO2 emissions, in line with what is also foreseen in the Turkish National Energy Plan 2022-2035. Among the potential projects that can be financed is also the expansion and restructuring of the distribution network of electricity produced from renewable sources in the areas affected by the earthquake.
For CDP “this is the first agreement with the institution fTurkish Financial Institution TSKB and falls within the scope of the initiatives promoted under the auspices of the International Development Finance Club (IDFC)an association that brings together some of the most important financial institutions for development in the world”.