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World Bank Approves First Climate Investment Fund Project

© World Bank28 May 2009: The World Bank approved a US$600 million loan to fund energy efficiency and renewable energy in Turkey.

The financing includes US$100 million from the Clean Technology Fund (CTF), a new US$5.2 billion multilateral fund managed by the World Bank to provide low-interest financing to scale up low carbon technologies to reduce greenhouse gas emissions during the period until a new global climate change agreement is negotiated and becomes effective.

The loans will be channeled towards two Turkish development banks for credit line financing of renewable energy and energy efficiency investments. The project aims to increase privately owned and operated energy production from local renewable sources within the market-based framework of the Turkish Electricity Market Law, thereby helping to enhance energy efficiency and curb greenhouse gas emissions as a result. The project aims to tap Turkey's significant renewable energy potential from hydro, wind, solar, biomass, geothermal, and other resources. Moreover, the project includes energy efficiency measures to help reduce waste in energy consumption. [World Bank Press Release]