Turkey and France Join Forces for Clean Energy

At the economic forum organized by the French-Turkish Chamber of Commerce, clean energy transition and decarbonization issues were addressed. Government officials, European Union representatives, development finance institutions, and major corporations participated in the event, discussing how to achieve net-zero emission targets and the financing required.

Construction Sector Sounds the Alarm

A representative from Saint-Gobain stated that decarbonization is no longer just an environmental issue but has become a matter of industrial sovereignty and competitiveness. While it took 125 years for the world population to grow from 1 billion to 2 billion, it took only 12 years to reach from 7 billion to 8 billion. By 2050, an additional 2.5 billion people will need urban housing.

Extreme weather events have increased by 80 percent over the last 20 years. Turkey experienced approximately 1,000 extreme weather events last year. The construction sector accounts for 32 percent of global energy consumption, 35 percent of carbon emissions, and 40 percent of resource consumption.

Saint-Gobain has committed to achieving net-zero carbon by 2050. The company currently sources 62 percent of its electricity from low-carbon sources and produces 30 percent of its glass using hydrogen. Now 75 percent of total sales come from high-performance and sustainable solutions.

€17 Million Support from the European Union

The EU Delegation to Turkey representative announced that they have provided over €17 million in financial support to Turkey’s energy sector under IPA2 and IPA3 programs. Both the EU’s 2050 and Turkey’s 2053 net-zero emission targets exist. The EU’s 2030 goal is to at least double the share of renewable energy consumption.

The EU representative emphasized that Europe does not want to achieve this transformation alone. Turkish companies are among the main partners of EU manufacturers in the clean energy sector.

€5 Billion Investment from France

French Ambassador Isabelle Dumont outlined France’s commitment to Turkey’s decarbonization journey with concrete figures. The French Development Agency has invested €5 billion in Turkey since 2004. €1.7 billion has been allocated in the last three and a half years.

Over €100 million has been provided for public transport modernization in Izmir since 2012. €125 million has been allocated for the Üçyol-Buca metro under construction. This project will benefit 300,000 people and prevent hundreds of thousands of tons of CO2 emissions. €350 million has been used for metro network expansion in Istanbul since 2006.

TotalEnergies and Rönesans Holding established a partnership in 2023. EDF and EÜAŞ are collaborating on electronic monitoring systems in Turkish hydroelectric plants. Alstom is contributing to carbon-free transportation through railway technologies.

The Ambassador congratulated Turkey on being selected to host COP31 in 2026 and said France is ready to strengthen cooperation.

Turkey to Add 120 Gigawatts of Renewable Energy by 2035

Deputy Minister of Energy and Natural Resources Zafer Demircan outlined Turkey’s comprehensive energy transition strategy. The National Energy Plan, prepared in 2022 following the Paris Agreement, balances energy security with decarbonization.

An additional 120 gigawatts of renewable capacity is targeted by 2035. Currently, approximately 8,000 to 11,000 megawatts are being added annually. This figure is among the highest in Europe. Electricity demand is expected to increase by 5.8 percent due to electric vehicles, data centers, and artificial intelligence.

Approximately 70 percent of Turkey’s emissions originate from energy. Electricity generation alone accounts for 35 percent of energy-related emissions. The current 75,000-kilometer high-voltage grid will be expanded to 94,000 kilometers by 2035.

Akkuyu Nuclear Power Plant to Begin Production in 2026

Demircan reported that three nuclear power plant projects are ongoing. Trial production at the project that started in Mersin Akkuyu in 2012 will begin in the second quarter of 2026. The first commercial unit will be operational by the end of 2026, with all units commissioned by 2028. A single plant will produce approximately 35 terawatt-hours annually with zero carbon emissions.

The 2050 target is 20 gigawatts of nuclear capacity, including approximately 5 gigawatts from Small Modular Reactors. Rare earth element deposits found in Beylikova near Eskişehir are also important for clean energy equipment.

Turkey will host COP31 in Antalya in 2026. Demircan said this demonstrates Turkey’s energy diplomacy success.

Financing is the Biggest Challenge

According to the International Renewable Energy Agency, $5 trillion in annual investment is needed to reach the 1.5-degree global warming target. However, the current global average is $1.3 trillion annually. Turkey needs approximately $80 billion for electricity capacity and approximately $30 billion for infrastructure by 2035.

Schneider Electric: Energy Efficiency is the Fastest Path

Schneider Electric manager Alishan Cephan said the energy sector is caught between short-term priorities and long-term sustainability challenges. 80 percent of CO2 emissions are energy-related. While it took 7 years for the World Wide Web to reach 100 million users, artificial intelligence achieved this in 2 months. AI will play a critical role in carbon emission reduction.

Cephan emphasized that on the supply side, a transition to AI-supported renewable energy with storage is needed, while on the demand side, energy efficiency is the cheapest and fastest path to net zero. Electrification can provide 3-4 times efficiency gains compared to fossil fuels.

Globally, 1 billion people lack access to electricity, 2 billion people use primitive energy sources for cooking. An additional 2 billion will join by 2050. Without energy efficiency, this gap will not close.

Veolia: No More Investment in Carbon-Positive Projects

Veolia representative Raffaele said the company positions itself as an environmental services company with a 170-year history. The company’s 2024-2028 strategy is built on three pillars: Decarbonization, de-pollution, and regeneration.

The most important change occurred in the investment committee. Carbon emission assessment now takes priority over financial sustainability. Carbon-positive projects are being rejected. Veolia has allocated €200 million for research centers.

The company is focusing on wastewater reuse. This is particularly suitable for Turkey’s ambitious water reuse targets. It reduces the need to extract and treat new water.

Rönesans: Turkey Matches European Average in Renewables

Rönesans Energy Group President Emre Hagan painted a detailed picture of Turkey’s renewable energy market. Turkey’s total installed capacity is approximately 100 gigawatts. There has been approximately 100 gigawatts of growth in the last 25 years. The share of fossil fuels peaked at 60 percent in 2014 and has now fallen to 38 percent. The renewable share has reached 62 percent of installed capacity.

The first wind energy project started in Çeşme in 1998. Real growth began in 2008. There is currently 14 gigawatts of capacity. Solar energy had almost zero capacity in 2013. There are now 32,000 projects averaging 0.7 megawatts. 90 percent of these are unlicensed projects installed by consumers for their own use.

Turkey’s 46 percent renewable generation equals the European Union average and exceeds the 30 percent global average. No large coal or natural gas projects are expected in the future. Main growth will come from wind and solar.

Hagan listed three important achievements: 85 million tons of greenhouse gas savings annually, $12 billion annual savings by avoiding natural gas imports, and lower electricity prices. Solar costs 5-6 cents, natural gas 7-8 cents.

Cement Sector Producing Energy from Waste

Vicat Group Industrial Manager Olivier Thomas acknowledged that the cement sector is a major CO2 emitter. A 3-million-ton cement plant produces 2.2-2.3 million tons of CO2. However, solutions exist.

Vicat’s two plants in Turkey are located near Ankara and Konya. These plants collect 200,000 tons of waste annually from the Marmara and Istanbul regions and use it as fuel. This reduces coal and oil consumption.

The company also uses an alternative raw material called calcined clay. Lower lime content reduces CO2 emissions. The Turkish government has introduced clinker factor limits in public tenders.

2030 targets are as follows: 497 kilograms of CO2 emissions per ton, 50 percent fossil fuel substitution, 40 percent carbon-free sources in electricity supply. Two carbon capture projects have also been initiated.

Green Finance: Turkey Needs $10 Billion Annually

The second panel addressed green financing. Global sustainable finance exceeded $1.5 trillion in 2024. Turkey needs approximately $10 billion annually to achieve its 2053 net-zero target.

Proparco: We’re in the Market During Tough Times

Proparco Regional Director Stephen Gardon explained the difference between development finance institutions and traditional banks. They are complementary, not competitive. They provide long-term capital and can take higher risks. They can engage in technology, business model, and financing structure risks.

Proparco can use all types of financing instruments from senior debt to private equity. They also provide technical expertise. Most importantly, they continue to stay in the market during difficult times. They remained in Turkey during COVID and economic difficulties.

Proparco has been operating in Turkey since 2004. It made its first renewable energy investment in 2012. It invests in solar, wind, and storage.

EBRD: Turkey is Our Largest Country

EBRD Energy Eurasia Director Şule Kılıç said green finance is not just renewable energy. It includes energy and resource efficiency, carbon and methane emission reduction, climate change mitigation, and nature conservation.

EBRD made an important decision in 2023: No financing for projects not aligned with the Paris Agreement. Starting in 2024, 50 percent of all financing must be green.

Turkey is EBRD’s largest country of operation. They started in 2009. Total financing exceeds €23 billion. Current portfolio is approximately €10 billion.

Kılıç mentioned new financing instruments. Turkey was included in the EFSD+ program three years ago. The HiBAR program provides first-loss guarantees for new technologies. It reduces sponsor costs for high-cost technologies like battery storage and hydrogen.

They are working on a credit enhancement tool with the EU Commission. It will provide guarantees for green bond issuances and investment-grade ratings. This will attract funds hesitant about political and currency risks.

They blend cheap financing from sources like the Climate Investment Fund and Clean Technology Fund with commercial financing. Kılıç said, “Turkey’s needs are great and it really needs these funds.”

TEB: Carbon Emission Now Comes First

TEB Assistant General Manager Ömer Yenidoğan said sustainability is in BNP Paribas’s DNA. TEB has embedded this approach throughout the bank.

Companies need a mindset shift to transition to a sustainable economy. TEB first established ESG advisory, then transformed it into a sustainable finance department. Now every company submitted to credit committees is evaluated for ESG profile.

TEB has introduced new products like green loans and green-linked derivatives. Yenidoğan listed three requirements for Turkish companies: Auditable, investment-grade ESG data, transition plans with real investment commitments until 2030, and board ownership. “Decarbonization is not a corporate communications matter, it’s an issue that must be owned by the board,” he said.

KPMG: Turkey Has a $36 Billion Gap

KPMG Infrastructure Sector Leader Görkem Yapan provided figures on Turkey’s infrastructure gap. According to G20 estimates, approximately $36 billion is needed, representing 30 percent of GDP. Actual investment is around $32 billion. The largest gaps are in the energy and transportation sectors. The energy sector alone requires $10 billion annually.

There are many challenges in making projects financeable. Permitting processes, supply chain issues, tariff mechanisms, local content requirements, cost overruns, and delays. But most importantly, cash flow predictability. This determines debt capacity and payment terms.

Recent YEKA auctions have improved predictability. However, there is a hidden risk. High competition in tenders leads to aggressive bidding. Excessive profit fees undermine financial viability and require higher sponsor equity.

Yapan said the advisor’s role is robust tender preparation, risk identification, and aligning all stakeholders.

International standards look beyond carbon reduction. Human rights, waste management, labor conditions, gender equality are also important. Yapan warned: “There is a significant gap between Turkish local environmental regulations and international standards. Closing this gap is essential to attract international capital.”

Success Stories

Proparco’s success stories in Turkey drew attention. A major textile manufacturer established plants to produce yarn from textile waste using French recycling technology. Proparco provided a €70 million loan. The plants also installed their own renewable energy facilities. 100 percent renewable, fully autonomous.

A major mining company installed its own solar power plants for energy security and decarbonization. Proparco provided financing. This model can be applied across all manufacturing sectors.

Proparco also partners with Turkish financial institutions. It provides green credit facilities for smaller projects. It creates scale through local expertise.

The forum demonstrated the breadth and depth of French-Turkish cooperation. From government policy to corporate strategy, from financial innovation to technological developments, all stakeholders agree on the urgency of decarbonization. The road is still long, but as speakers emphasized, the economic, environmental, and social benefits make this transformation both necessary and advantageous. Turkey’s hosting of COP31 in 2026 will provide a global platform to showcase progress and deepen partnerships.

How Will CBAM Affect Turkey? The Finance World Responds

In the final session of the forum, journalists’ questions were answered. Hakan Bilgehan from Gazete Makina asked about the impact of the Carbon Border Adjustment Mechanism (CBAM), which will be fully implemented in 2026. “Turkey will face significant losses in sectors such as cement and steel. What precautions need to be taken in the financial sphere?” he asked.

Proparco: Priority on High-Carbon Sectors

Proparco Regional Director Stephen Gardon stated that these sectors are high priority due to their carbon intensity. “We will invest in and support the transition of these sectors. It needs to be clearly mapped internally. We will provide technical assistance to help our partners move in the right direction,” he said.

Gardon emphasized they would deploy capital to achieve ambitious goals. “There’s a question in the financing sphere. Yes, financing is available from us, but most development finance institutions also have financing dedicated to these specific sectors. This is of great importance if we want to execute the transition in Turkey,” he added.

EBRD: Turkey Industrial Decarbonization Investment Platform Established

EBRD Energy Eurasia Director Şule Kılıç announced an important development. “After completing the low-carbon pathways study with the Ministry of Industry and Technology, we made a rough estimate of the total financing need. As a second step, we established the Turkey Industrial Decarbonization Investment Platform,” she said.

Kılıç noted that this platform will be heard about much more going forward. “We launched this platform last November when our president was in Turkey. The aim is to create a pool. The World Bank and IFC signed up together with us. We will invite all other international financial institutions and concessional funding sources to join this platform.”

The platform is called TTIP. Kılıç said, “It is moving fast right now. Turkey hosting COP 31 will probably speed this up. This pool will be used for decarbonization investments, especially for hard-to-abate sectors. I hope we will be able to announce more developments regarding TTIP soon.”

TEB: Large Companies Ready, Mid-Sized on the Way

TEB Assistant General Manager Ömer Yenidoğan noted that certain sectors like metals and mining are more critical because they will be affected faster than others. “Large companies are already almost prepared. But I would like to underline that mid-sized companies’ awareness is growing every day, but there is a way to go,” he said.

Yenidoğan emphasized that all banks are ready to finance many transformation projects together with international financial institutions and other stakeholders. “Not only us, but all banks are ready for this,” he added.

Platform Details

The Turkey Industrial Decarbonization Investment Platform (TTIP) has been specifically designed for the transformation of high-emission sectors such as cement and steel. The platform aims to bring together different financing sources to offer companies affordable and long-term financing options.

Other development banks and climate funds are expected to join the platform established by EBRD, the World Bank, and IFC. This will enable both large and mid-sized companies to make the necessary investments to comply with CBAM.

When CBAM is fully implemented in 2026, companies exporting cement, steel, aluminum, fertilizer, and electricity to the EU will have to pay extra fees based on the carbon footprint of their products. Turkey’s exports in these sectors amount to billions of dollars annually. The platforms and support mechanisms created by financial institutions are critical for Turkish companies to maintain their competitive edge.