Climate finance takes centre stage ahead of COP31 in Istanbul

Türkiye’s climate finance ecosystem took centre stage as senior representatives from government, public institutions, financial institutions, international organizations, the private sector, academia, diplomatic community, and the United Nations gathered for the “Towards COP31: Climate Finance Policy Dialogue” at Ziraat Bankası Headquarters in the Istanbul Financial Center.

Convened by the Ministry of Treasury and Finance, the United Nations in Türkiye and the Office of the COP31 Climate High-Level Champion on the margins of Istanbul Climate Finance Week, the high-level dialogue focused on aligning national priorities with the global climate finance agenda and turning climate ambition into investable action ahead of COP31.

Minister of Treasury and Finance Mehmet Şimşek was among the high-level participants attending the dialogue.  

“The fundamental question is no longer whether we need to invest in climate action. The question is: how do we enhance the scale, speed and quality of finance required to turn climate ambition into investment and investment into real-world results?” said United Nations Resident Coordinator in Türkiye Dr. Babatunde Ahonsi in his opening remarks. 

“We need stronger pipelines of bankable and investment-ready climate projects. We need to deepen domestic markets for green and sustainable financial instruments. We need stronger risk-sharing and blended finance mechanisms that can help mobilize private and institutional capital. And we need reliable reporting, assurance and climate data so that investors can make informed decisions with confidence” emphasized Ahonsi. 

Samed Ağırbaş, COP31 Climate High-Level Champion and President of the Zero Waste Foundation said financing was not simply a complementary element of climate policy but the mechanism that enabled climate policies to be implemented. 

Ağırbaş called for public resources, private capital, international financial institutions and new financing models to be brought together within an integrated system.

United Nations Assistant Secretary-General and Director of the United Nations Development Programme’s Bureau for Policy and Programme Support Marcos Neto and International Energy Agency Executive Director Fatih Birol delivered keynote addresses.

Neto said the new generation of nationally determined contributions and national adaptation plans marked a new phase in the implementation of the Paris Agreement.

“The world does not need more planning or more pledges. What the world needs is delivery and implementation. In that sense, COP31’s Climate Implementation Bridge can make an enormous contribution by moving us from planning to implementation and capital deployment” said Neto.

“As countries seek to strengthen their energy security amid the current crisis, many are looking to accelerate the electrification of their economies. At the same time, nuclear energy is gaining momentum and the falling costs of low-emissions technologies like solar and batteries are making the economic case for investment increasingly compelling,” said Birol.

“But challenges in accessing finance persist — particularly in developing economies, where the cost of capital remains high. The International Energy Agency welcomes the Government of Türkiye’s strong efforts ahead of COP31 to deliver practical, measurable and tangible outcomes and stands ready to support the process,” he added.

World Bank Country Director for Türkiye Jean-Christophe Carret and Asian Infrastructure Investment Bank Vice-President Ajay Bhushan Pandey offered reflections on financing climate action.

“COP31 presents a unique opportunity to move the global climate finance discussion from ambition to implementation. Türkiye is already showing how policy reforms, institutional capacity and public-private partnerships can unlock investment for climate and development objectives. The World Bank Group is proud to support this journey by helping mobilize finance, prepare bankable projects and crowd in private capital that delivers tangible benefits for people, businesses and communities,” said Carret.

"Türkiye shows why climate finance is not about one instrument or one headline figure. It is about matching the right tool to where the constraint sits. AIIB has deployed sovereign loans, on-lending through domestic banks and leasing companies, direct finance to private-sector projects and corporates, and investments in Turkish green and sustainable bonds, a range made possible by Türkiye's strong public institutions, deep financial sector and dynamic private sector" said Pandey.

Partnerships for implementation

The programme included a Partnership Protocols Signing Ceremony featuring financial agreements between the Ministry of Treasury and Finance, the World Bank, the Development and Investment Bank of Türkiye (TKYB) and the Industrial Development Bank of Türkiye (TSKB).

The Ministry of Treasury and Finance and the United Nations in Türkiye also signed a Declaration of Intent envisaging a strategic partnership on climate and development finance. The partnership covers six areas: knowledge and evidence; policy dialogues and recommendations; climate finance coordination and partnerships; project preparation and capital mobilization; innovative financing and piloting; and strategic advocacy and COP31 legacy.

From dialogue to actionable recommendations

Six parallel thematic sessions brought together policymakers and practitioners to explore financial regulation and taxonomy; green finance instruments; bankable project pipelines; blended finance and risk-sharing instruments; mobilizing private capital; and sustainability reporting, assurance and reliable climate data.

Reporting-back sessions brought the discussions into plenary and highlighted opportunities to strengthen policy and regulatory alignment, expand credible green finance instruments, improve project preparation, reduce investment risks and reinforce the data and assurance infrastructure needed for sound climate finance decisions.

The recommendations emerging from the dialogue will be captured in a concise report and communicated to the COP31 Presidency, the Office of the Climate High-Level Champion, international financial institutions and multilateral development banks. They are expected to inform continued work to strengthen Türkiye’s climate finance ecosystem and contribute to COP31 climate finance discussions and the Global Climate Action Agenda.