TSKB cuts Carbon Emissions by 2.4 million tonnes by Financing Energy Efficiency Investments

11 January 2019
- 3 min Read

Providing a significant amount of support to Turkey’s energy efficiency in Turkey with the medium and long term financing obtained from international markets, TSKB has so far extended about USD 655 million of financing to over 80 projects solely for this purpose. In a statement to mark Energy Saving Week, the General Manager of TSKB, Suat İnce, said that It was organized by the Ministry of Energy and Natural Resources to draw attention to energy efficiency, was especially important in raising awareness among industrial companies. It is clear that ensuring that the real sector uses energy efficiently without compromising on quality presents both great economic and environmental potential. At TSKB, we do our part in this regard, paving the way for 4.7 million Gigacal of energy savings each year for our country through the energy efficiency investments which we finance.

Striving to promote Turkey's inclusive and sustainable development, the Industrial Development Bank of Turkey (TSKB) stands out with its financing support with the theme of sustainability, especially energy efficiency. Some 68% of the loan portfolio to date consists of the Bank's sustainable themed investments, with the Bank providing approximately USD 655 million to more than 80 energy efficiency projects.

Mr. İnce, who is also a member of the Board of Directors of Enver (Energy Efficiency Association), underlined the efforts to raise awareness of industrial companies in this field as part of Energy Saving Week. Mentioning TSKB's work in this regard, he said the following; “undoubtedly, ensuring that the real sector uses energy efficiently without compromising on quality presents a combination of both economic and environmental potential on a large scale. At TSKB, we do our part in this regard, and save 4.7 million Gigacal of energy each year in our country through the energy efficiency investments that we finance. These investments are also important in the transformation to a low-carbon economy. We have already reduced our country's annual carbon emissions by 2.4 million tonnes with more than 80 investments we have financed. Taking into account the investments, which include different sustainability themes such as renewable energy and the environment, and which account for 68% of our loan portfolio, the annual reduction in carbon emissions reaches 12 million tonnes.”

He pointed out that the energy efficiency projects were not only making a difference when it comes to tackling climate change and reducing dependence on foreign energy resources, but were also providing a competitive advantage in the private sector by reducing energy costs.

Stating that energy efficiency investments had become widespread in every sector, Mr. İnce added the following: “In energy efficiency investments, sectors such as iron and steel, cement, textiles, automotive, chemicals and plastics, which have a high energy input and consume a high level of energy, especially stand out. When we look at it as an investment area, we see that energy efficiency projects are spread over a wide range of applications such as energy production from waste heat, plant modernization, energy optimization, energy efficient technologies, insulation, lighting, transportation and green buildings.”

Supporting energy efficiency for 10 years

Since 2009, TSKB has been providing medium and long term financing on energy efficiency and implementing many projects. For the first time, the Bank has started to build capacity in energy efficiency with the loan that it obtained from the International Bank for Reconstruction and Development (IBRD) under the Clean Technology Fund. In addition to developing new marketing activities in line with this new theme, the Bank has also carried out work to raise awareness regarding energy efficiency among its customers. TSKB obtains funds in the field of energy efficiency from a number of development finance institutions, including the World Bank (IBRD-IFC), the French Development Agency (AFD- Agence française de développement), the German Development Bank (KfW), the Japanese International Cooperation Bank (JBIC), the European Investment Bank (EIB), the Islamic Development Bank (IDB), the European Bank for Reconstruction and Development (EBRD), the Austrian Development Bank (OeEB) and the Asian Infrastructure Investment Bank (AIIB).

Also in 2016, TSKB realized the Green / Sustainable Bond issuance - a first in Turkey and the region. Energy efficiency investments are also among the projects which TSKB is supporting with the USD 300 million of funding obtained through this issuance. In 2017, TSKB was the first bank to issue a Subordinated Sustainable Bond in international markets. Thanks to the funds obtained from this USD 300 million issuance, it has supported a number of energy efficiency projects within the scope of tackling climate change.