World Bank Approves €360M Guarantee to Boost Climate Resilience in Türkiye's Private Sector

WASHINGTON, DC, June 30, 2025 — The World Bank has approved a EUR 360 million (approx. US$389.5 million) guarantee for the Financing Adaptation for Growth Project in Türkiye. This initiative aims to strengthen business resilience and support adaptation to climate change, reflecting the World Bank’s ongoing commitment to sustainable development and climate action in the country.

Türkiye is highly exposed to natural disasters and climate-related events such as earthquakes, floods, droughts, and wildfires. These have caused considerable damage to communities, businesses, and the economy. The new project seeks to mobilize up to EUR 600 million in private investment to help firms implement climate adaptation strategies and improve their resilience.

Key Innovations

Building Climate-Resilient Businesses

Firms will gain access to financial tools and an innovative Adaptation Toolkit to assess climate risks and identify necessary adaptation measures. This support will help businesses proactively prepare for and respond to increasing climate hazards—protecting jobs, livelihoods, and local economies. The project also serves as a pilot to grow Türkiye’s adaptation finance market for future expansion.

Leveraging Private Capital

Consistent with the World Bank Group’s Maximizing Finance for Development approach, the initiative will attract private sector investment by de-risking adaptation investments through the IBRD guarantee. This model aims to demonstrate the commercial viability of financing climate resilience at the firm level and to scale up broader climate action in the private sector.

“Like many Mediterranean countries, Türkiye is increasingly vulnerable to extreme climate events such as heatwaves, droughts, and floods, which have become more frequent and severe,” said Humberto Lopez, World Bank Country Director for Türkiye. “This project directly addresses those challenges by mobilizing private capital to help firms adapt. It safeguards livelihoods, strengthens businesses, and supports sustainable economic growth.”

Implementation will be led by Türkiye Sınai Kalkınma Bankası A.Ş. (TSKB), which will raise up to EUR 600 million in long-term commercial financing supported by the World Bank guarantee. These funds will be used to provide sub-loans to eligible firms, with a focus on women-inclusive businesses to improve access to finance and climate resilience for underrepresented groups.

The project aligns with Türkiye’s Climate Change Adaptation Strategy and Action Plan (2024–2030), which prioritizes awareness, capacity-building, and resource mobilization for adaptation. The World Bank's support will play a critical role in helping Türkiye meet these goals while advancing sustainable, climate-resilient development.

The World Bank remains dedicated to working with Türkiye in its transition toward a more resilient, inclusive, and climate-aware economy.