The Turkish Ministry of Industry and Technology and the Glasgow Financial Alliance for Net Zero (GFANZ) have signed a memorandum of understanding (MoU) at the 31st United Nations Climate Change Conference (COP31) to strengthen cooperation in financing Turkey's industrial decarbonization.
Under the agreement, GFANZ will become the private sector finance partner of the Turkey Industrial Decarbonization Investment Platform (TIDIP), supporting efforts to mobilize private capital for the country's industrial transformation. According to Turkish Industry and Technology Minister Mehmet Fatih Kacır, the partnership will strengthen TIDIP's private financing dimension and help connect Turkey's industrial transition projects with international capital.
Private Finance Engagement Program to support industrial investment
The cooperation will focus on establishing a Private Finance Engagement Program to facilitate dialogue between financial institutions, investors, government authorities and development finance institutions. Through the program, GFANZ will work with the ministry, the TIDIP Secretariat and its partners to identify financing challenges, improve the bankability of industrial decarbonization projects and explore solutions to attract private investment.
The initiative will include regular workshops, working groups and other forums to connect investors with industrial decarbonization opportunities and support the development of appropriate financing mechanisms. The ministry may also invite GFANZ to participate in the TIDIP Advisory Board or another consultative body to provide technical expertise and private sector perspectives.
Iron and steel among priority sectors for industrial decarbonization
Established by the Ministry of Industry and Technology in cooperation with international financial institutions, including the European Bank for Reconstruction and Development (EBRD), the World Bank and the International Finance Corporation (IFC), TIDIP aims to support Turkey's transition toward low-carbon industrial production. Under a joint declaration signed in November 2024, the platform has set targets for 2030, including mobilizing more than €100 million in technical assistance and concessional finance and supporting the implementation of industrial decarbonization projects worth over €5 billion. TIDIP also aims to achieve annual greenhouse gas emissions reductions exceeding 20 million mt of CO₂ equivalent.
The platform initially focuses on energy-intensive industries, including iron and steel, cement, aluminum and fertilizers, with the possibility of expanding to additional sectors. The initiative supports Turkey's National Green Deal Action Plan, nationally determined climate contribution and 2053 net-zero emissions target. The new agreement also complements the work of the Industrial Transition Accelerator (ITA), which supports industrial decarbonization projects in progressing toward final investment decisions.
