By by Sandy Ferguson and Adonai Herrera-Martinez
The first phase of the EBRD's Turkish Sustainable Energy Financing Facility (TurSEFF) shows how, with the right mix of financing mechanisms, one can achieve substantial changes in energy use, emissions, and fuel mix in middle income countries.
Turkey has become one of the key countries for the EBRD's Sustainable Energy Initiative (SEI) in just a few years, a vivid example of what local financial institutions and climate finance can do to overcome market barriers.
Through energy assessments and energy-saving investments, private and public sector organisations in Turkey are now better prepared to cut costs and reduce energy intensity in the most energy- and carbon-intensive sectors, even as the Turkish economy continues to expand.
When the EBRD began operating in Turkey in 2010, both the EBRD and the Turkish government spotted an important opportunity. Both wanted to lay the groundwork for a sustainable energy finance market to assist Turkey strengthen its energy security, improve its environmental performance and reduce the impact of energy imports on the current account deficit.
Drawing on its experience with lending through intermediaries, the EBRD launched TurSEFF. Now three years later, the Facility's success is manifest for all to see.
Since its launch, TurSEFF has provided $289 million in project finance and cut 650,000 tonnes of CO2 per year. Over 1.5 TWh of energy efficiency and 1.15 TWh per year of renewable energy have been saved. This further translates into a significant $ 145 million cost saving in unspent oil equivalency for the Turkish economy.
"We are thrilled with the success of TurSEFF in mainstreaming sustainable energy investments in Turkey to help local businesses increase productivity, reduce energy costs, and promote sustainable economic growth," said Terry McCallion, EBRD's Director of Energy Efficiency and Climate Change.
"Key to this success was the active participation and engagement of the Turkish banking sector, the technical assistance support to ensure successful project implementation and the focused policy work undertaken by the Bank since the signing of the Sustainable Energy Action Plan for Turkey. "
"TurSEFF has been a resounding success delivering real benefits to the Turkish economy by reducing energy imports and increasing the efficiency of industry", said Mr. Erdal Çal
