Which areas stand out in Turkey’s climate transition as we approach COP31?
The Industrial Development Bank of Turkey (TSKB) has published a report titled “Towards COP31: Priority Agenda Items and Transformation Opportunities for Turkey,” prepared in collaboration with Escarus. The report evaluates the shifting global climate agenda and key areas of transformation for Turkey as preparations for COP31 get underway.
Key topics addressed in the study include climate finance, energy transition, industrial decarbonization, climate change adaptation, and a just transition.
**Focus of the climate agenda shifts to implementation**
The report characterizes the period following the first Global Stocktake under the Paris Agreement as a process focused more on implementing existing targets than on setting new ones.
In this context, zero waste, clean energy transition, green industrialization, and climate-resilient cities are highlighted as priority areas for implementation.
The “Climate Implementation Bridge,” an initiative developed under Turkey’s leadership, is another mechanism featured in the report. The initiative aims to support the implementation of countries' Nationally Determined Contributions (NDCs), transform national priorities into bankable projects, and facilitate access to climate finance.
**Energy transition converges with economic security**
The TSKB report notes that the energy transition is no longer viewed solely through the lens of climate policy; energy security, economic security, and industrial policies are also becoming integral components of this transformation.
Driven by geopolitical developments, the debate surrounding energy supply security is extending beyond oil and natural gas. Access to electricity infrastructure, critical minerals, and clean energy technologies is also gaining importance within this context. According to the report, electrification needs to be expanded, particularly in the industrial and transportation sectors. Planning this in conjunction with energy generation and grid investments is crucial for the sustainability of the transition.
**Bankable projects are key to climate finance**
Financing the low-carbon transition is one of the report's central themes.
Strengthening Turkey’s capacity to access climate finance and developing project portfolios that support low-carbon investments in industry are identified as priority areas.
Reducing the cost of capital in developing countries, expanding the use of risk-sharing instruments—such as guarantees and insurance—and enabling multilateral financial institutions to play a more active role are also listed as measures that could facilitate access to finance.
The report further emphasizes the growing importance of financial institutions integrating physical climate risks into their lending, investment, and risk management processes.
**Water management takes center stage in adaptation investments**
Regarding climate change adaptation, water security is a prominent issue.
The report calls for the expansion of climate-resilient infrastructure, the use of digital technologies in water management, and increased investment in alternative water sources.
Collaboration between the public and private sectors, along with the development of financial mechanisms that support private sector investment, is essential for the growth of adaptation finance.
**The social dimension of the transition: Just transition**
The transition to a low-carbon economy does not affect every sector and region in the same way. Consequently, the report identifies a "just transition" as a fundamental element of the climate transformation. To prevent new social and economic inequalities that may arise during the transition process, there is a need for policies and support mechanisms that take into account the distinct needs of various sectors and regions.
This approach demonstrates that climate policies must be addressed not only in terms of emission reduction targets but also by considering the economic and social consequences of the transition.
Implementation capacity will be a decisive factor in the lead-up to COP31.
Assessments by TSKB and Escarus indicate that, as the climate agenda moves toward COP31, the fundamental issue is shifting from "which targets to set" to "how these targets will be implemented."
For Turkey, key areas in this process include accelerating energy and grid investments, the low-carbon transformation of industry, access to climate finance, water security, and climate-resilient infrastructure.
The decisive factor in the run-up to COP31 will be the extent to which targets can be translated into fully funded, feasible, and measurable projects.
Source: TSKB and Escarus, *Towards COP31: Priority Agenda Topics and Transformation Opportunities for Türkiye*, 2026.
