Türkiye Green Industry Project

Türkiye Green Industry Project will be carried out by the Türkiye's Ministry of Industry and Technology, TÜBİTAK and KOSGEB with the support of the World Bank. The total budget of the project, whose aim is to support the sustainable and efficient green transformation of the industry in Türkiye, has been determined as 450 million USD.

The operation will direct $250 million to the Small and Medium Enterprises (SMEs) Development Organization of Türkiye (KOSGEB), to help SMEs improve their resource performance and reduce carbon emissions, and $175 million to the Scientific and Technological Research Council of Türkiye (TÜBITAK), to foster green innovation activities by Turkish enterprises, research institutions and universities. The remaining $25 million will go to the Government of Türkiye to coordinate project activities and lay the institutional foundations for the implementation of the national green industrial transition agenda.

The Turkish manufacturing industry has recorded significant growth in recent years, accounting for more than 90% of all Turkish exports, of which over 40% go to the European Union (EU). Yet, Turkish manufacturing is more carbon-intensive than the EU average and, under the Carbon Border Adjustment Mechanism (CBAM), the EU will be adopting more stringent carbon standards for manufactured goods. Türkiye is responding to this by trying to adapt its manufacturing sectors to the new standards.

The project duration is five years and the project consists of three components. The first component will be carried out by KOSGEB, the second component by TÜBİTAK, and the third component by the Ministry of Industry and Technology.

(a) The first component of the project will be carried out by KOSGEB. In the first component, a loan of 250 million USD will be provided for the green transformation activities of SMEs. With the said loan, activities to be carried out by industrial enterprises in renewable energy, resource efficiency, waste management, circular economy and similar thematic areas will be supported.

(b) The second component of the project will be carried out by TUBITAK and the project budget is 175 million USD. Grants and reimbursable financing will be provided within the scope of the project. Within the scope of this component, mentoring activities that will guide companies in their green transformation processes and R&D and innovation activities aimed at developing technology-based solutions that companies need will be supported. The target segment of the project is the private sector companies located in Türkiye, engaged in green innovation activities for the development of green technology, products or processes. The target audience can be SMEs, large companies and company consortia (including public research institutes and universities).

(c) The third component and general management of the Project will be carried out by the Ministry of Industry and Technology. Under the third component, the technical support component, the following activities will be carried out with a budget of 25 million USD.

Detailed information: https://projects.worldbank.org/en/projects-operations/project-detail/P179255