During a presentation at the second workshop on the decarbonization of the Turkish steel industry organized by Sabancı University’s Istanbul Policy Center within the scope of Steel Sector Network on October 17, Muharrem Aşkın, principal for regional policy and strategy of the European Bank for Regional Development (EBRD), detailed the roadmap for the Turkey Industrial Decarbonization Investment Platform (TIDIP).
The roadmap sets sector-specific emission-reduction targets in line with Turkey’s 2053 net-zero goal, requiring a total $70 billion in industrial investments:
- Steel sector: 99 percent emission reduction - $31 billion
- Cement sector: 93 percent reduction - $30 billion
- Aluminum: 75 percent reduction - $5 billion
- Fertilizer: net-negative emissions - $5 billion
Financing challenges and policy solutions
The presentation identified key challenges in securing funds for the green transition.
At the government level, challenges include ensuring market certainty and effective allocation of financial support, while solutions should focus on developing low-carbon investment plans, dedicated incentive schemes based on performance and impact, and targeting public funding where it has the highest effect.
At the corporate level, issues such as limited access to funding and capacity gaps in climate risk assessments need to be addressed through low-carbon strategies, sustainability-linked loans, and innovative finance instruments anchored to specific milestones.
Turkey’s decarbonization strategies
Under its Low Carbon Pathways (LCPs) initiative, Turkey published detailed roadmaps for the steel, aluminum, cement, and fertilizer industries on March 18, 2024, coordinated by the Ministry of Industry and Technology (MoIT). The launch drew over 800 participants from industry associations, underlining strong local engagement but also highlighting the need for significant investment to sustain momentum.
Formally launched on November 25, 2024, TIDIP is a joint initiative of the MoIT, EBRD, International Bank for Reconstruction and Development (IBRD), and International Finance Corporation (IFC), and represents Turkey’s largest industrial decarbonization program. Initially, the platform targets the steel, aluminum, cement and fertilizer sectors and seeks to mobilize €5 billion in private investment, offering technical and financial support for emission-reduction projects.
TIDIP’s framework aims to reduce transaction times and costs, improve risk allocation, and accelerate project development. It connects developers, financiers, and technology providers to align projects with technologies identified under the Low Carbon Pathways.
Key investment areas include:
- Energy efficiency and process electrification
- Circular economy and resource recovery
- Carbon capture, utilization and storage (CCUS)
- Hydrogen and renewable electricity integration
- Climate tech innovation and green-market acceleration