COP31 host Turkey, AIIB strike record $1.6 billion climate policy deal

The Asian Infrastructure Investment Bank has agreed a record $1.6 billion financing deal with COP31 climate conference host Turkey to support ‌a series of policy reforms aimed at attracting the investment it needs to hit its climate goals, the bank said.

Turkey, a founding member of the AIIB, will need an estimated $68 billion in additional climate investment by 2030, around half from private sources, the bank said in a statement on Thursday, the fourth day of the two-week U.N. climate conference being held in Antalya.

Covering fiscal ⁠policy, financial regulation and sectoral planning, the agreement will support the implementation of Turkey's Climate Law and its plan to cut planet-warming emissions, which includes an interim target for 2035 and aims to achieve net zero by 2053.

The money will help scale sustainable finance, accelerate decarbonisation and boost climate resilience efforts across the country of 86 million people as global warming drives drought, floods and wildfires.

"This financing represents AIIB's largest climate policy-based financing package to date, and we look forward to contributing to Türkiye delivering on its climate ambitions," said AIIB Chief Investment Officer Konstantin Limitovskiy.

Reuters