MidSEFF Carbon Market Development Support Programme

In 2010 the European Bank for Reconstruction and Development (EBRD) launched the Mid-size Sustainable Energy Financing Facility (MidSEFF). This facility aims to support energy efficiency and renewable energy measures in Turkey by providing concessional capital to commercial lenders in Turkey.

As part of MidSEFF, a dedicated carbon market development programme has been launched. The aim of this programme is to develop and promote the participation of Turkish banks and companies in carbon markets in Turkey and abroad. Backed by the EBRD Shareholder Special Fund, the programme has been operational for 10 years as of 2021. The programme helps to further strengthen Turkish interest in carbon pricing and carbon markets by building capacity at three levels:

1. National level support: capacity building and policy dialogue

The programme supports carbon market development in Turkey by promoting initiatives that can further increase participation of sovereign and private sector actors in the national and international carbon market. This includes advising the Directorate General of Civil Aviation and the Ministry of Environment and Urbanisation on the impacts CORSIA will have on the demand for carbon credits in Turkey, and the conceptual development of the Climate Stars programme designed to support companies across sectors with carbon neutrality.

To read more about the supported national activities, please click here.


2. Bank level support: developing Turkish banks' carbon market services

Banks are well positioned to help existing and new clients manage the risks and opportunities created by carbon markets. The programme provides capacity building support by training Turkish partner banks across a range of carbon market activities, including project origination and finance; and trading and brokerage of carbon credits. The programme also supports banks with the uptake of internal carbon pricing (including MRV of investment portfolios), an instrument that can help banks with the achievement of net zero targets.

To read more about supported banking activities, please click here.


3. Project level support: supporting the carbon asset development process

The programme delivers technical assistance to renewable energy and energy efficiency projects financed under MidSEFF that are eligible for carbon financing. This support includes carbon asset development and monetisation of the generated carbon credits. As of 2021, the programme has supported the development of six carbon projects registered under the VCS and the Gold Standard. Under the entire MidSEFF programme, there are a further 35 carbon projects currently being developed by third-parties.

To read more about the supported project activities, please click here.

Mid-size Sustainable Energy Finance Facility (MidSEFF)

MidSEFF is a finance facility developed by the EBRD with support from the European Investment Bank (EIB) and European Union (EU). As of end of 2020, about € 1.9 billion in credit has been provided to Turkish partner banks under the facility for on-lending to private sector borrowers, with a total of 73 projects co-funded. Eligible projects include mid-size investments (€ 10 – 50 million) in Turkish renewable energy, waste-to-energy and industrial energy efficiency projects. The following seven Turkish banks are currently benefitting from the facility: Akbank, Denizbank, Finansbank, Garanti, Isbank, TSKB, Vakifbank and Yapi Kredi.

To find out more about MidSEFF, please click here.

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