WASHINGTON, April 1, 2024 - The World Bank will provide $400 million in financing to help women and youth access jobs and economic opportunities being created by the green transition in Türkiye.
The Türkiye Socially Inclusive Green Transition Project will facilitate access to finance by women and youth led micro, small and medium enterprises (MSMEs) as well as their access to jobs being created by green sectors of the economy.
The World Bank will also provide $416 million for the Türkiye Industrial Emissions Reduction Project to support selected industries in reducing greenhouse gas (GHG) emissions through the adoption of clean technologies and processes.
"Türkiye is taking a whole-of-economy approach to an ambitious green transition program, which will create new opportunities. The World Bank welcomes Türkiye's commitment and is delighted to support efforts to ensure the benefits of the green transition are equitable and inclusive, especially for women and youth," said Humberto Lopez, World Bank Country Director for Türkiye.
As the green transition will have uneven impacts, the Türkiye Socially Inclusive Green Transition Project will focus expanding economic opportunities and facilitate job creation for women, youth and other vulnerable groups in less developed areas of the country.
It aims to support more than 5,000 women and youth led MSMEs, which often face increased barriers in accessing finance, including due to stricter collateral requirements. Through loans and grants, MSMEs will be able to adopt green technologies, reduce their carbon emissions and build resilience against flooding and other impacts of climate change. Seed financing for new businesses led by woman and youth will also be provided.
The project will also support investments in local infrastructure, at the district and municipal level, to foster climate change resilience and mitigation efforts. An estimated 175 infrastructure facilities are expected to be supported by the project.
The Türkiye Industrial Emissions Reduction Project will target the manufacturing sector to decrease emissions of air pollutants and GHGs, which have adverse impacts on the environment, climate, productivity, health, and resilience. The industrial sector is a significant contributor to air pollution and GHG emissions in Türkiye, accounting for 28% of total GHG emissions and 35% of fine particulate matter emissions.
By facilitating access to long term finance, needed by industry to adopt clean technology and processes, the project aims to reduce emissions of particulate matter by 40% and nitrogen oxides by 30% from beneficiary manufacturers and reduce GHG emissions of 220,000 metric tons per year.
The two projects were approved by the World Bank Board on March 28, 2024. They are part of broader World Bank support for Türkiye's green transformation in several sectors, including energy, transport, industry, urbanization, agriculture, and water and forest management.
