AIIB Signs Record $1.6 Billion Climate Deal with COP31 Host Türkiye

On Thursday, 12 November, the fourth day of the COP31 climate conference in Türkiye, the Asian Infrastructure Investment Bank (AIIB) announced a record $1.6 billion financing deal with the host country. This is the largest climate policy-based financing package in the bank’s history.

The money will not fund specific projects but will instead support policy reforms to implement Türkiye’s new Climate Law. The law is part of the country’s broader climate framework, which sets an interim emissions target for 2035 and aims to achieve net-zero emissions by 2053. Part of the financing is intended to protect these reforms from fiscal pressures caused by ongoing tensions in the Middle East.

One of the main aims of the programme is to expand Türkiye’s new emissions trading system, which puts a price on carbon emissions. This could help steel and cement exporters adapt to the EU’s Carbon Border Adjustment Mechanism, as carbon costs paid in Türkiye may be taken into account under the EU’s system.

The programme sets clear targets: by April 2027, at least 180 industrial facilities are expected to start reporting their emissions, while wind and solar projects totalling 1,800 megawatts are expected to receive production licences by early 2027. By 2028, the programme also aims to help 225,000 farmers in water-stressed areas switch to crops that require less water.

Although this financing package sets a record for the AIIB, the bank estimates that Türkiye will still need around $68 billion in additional climate investment by 2030.

References

Asian Infrastructure Investment Bank. (2026, November 12). AIIB and Türkiye sign USD1.6 billion package to accelerate climate reforms. https://aiib.org/en/news-events/news/2026/aiib-and-turkiye-sign-usd1-6-billion-package-to-accelerate-climate-reforms.html

Asian Infrastructure Investment Bank. (2026). Türkiye: Türkiye Climate Action Acceleration Program (TCAAP) [Project summary information]. https://www.aiib.org/en/projects/details/2026/approved/turkiye-climate-action-acceleration-program-tcaap.html

Jessop, S. (2026, November 12). COP31 host Turkey, AIIB strike record $1.6 billion climate policy deal. Reuters. https://www.reuters.com/sustainability/cop/cop31-host-turkey-aiib-strike-record-16-billion-climate-policy-deal-2026-11-12/

Worth, K. (2026, November 9). Opening of COP 31 [Photograph]. UN Climate Change, Flickr. https://www.flickr.com/photos/unfccc/55642148311. Licensed under CC BY-NC-SA 4.0.