EIB backs Türkiye's green transition, eyes railway expansion

European Investment Bank Vice President Robert de Groot announced €200 million in fresh financing for clean energy projects during his inaugural visit to Türkiye this week, marking a renewed commitment to Ankara's sustainable development goals while signaling potential support for railway modernization efforts. The EIB, which began operations in Türkiye in 1965 and has provided €30.86 billion for 263 projects across transport, energy, and urban infrastructure, finalized two separate €100 million agreements on Wednesday.

One facility will channel funds through the Development and Investment Bank of Türkiye for sustainable industrial investments, while the second will back green finance initiatives for Turkish exporters via Turk Eximbank, according to statements from the bank. De Groot emphasized that energy efficiency remains a primary concern for businesses across Europe and Türkiye. "I think all companies are looking for lower energy consumption and also to maximize the use of renewables," he said during meetings in Istanbul. "So, every businessman you talk to, whether it's in this country or anywhere else in Europe, has very much energy efficiency on his mind."

Reconstruction efforts in Hatay

The vice president also inspected post-earthquake reconstruction work in Hatay province, where the EIB previously committed €400 million to repair water and wastewater infrastructure following the February 2023 disasters. De Groot noted that the technical standards achieved in restoring drinking water services impressed the delegation, particularly efforts to build infrastructure capable of withstanding future seismic events.

"So, they are truly trying to build back better," De Groot said. "The people have suffered enormously and are still suffering, and that made a great impression. But also their resilience to bring Antakya and the province back to how it was." The visit marked what De Groot described as the start of a new cooperation phase between the EIB and Türkiye, with the bank appointing a new head of office in Istanbul to identify pipeline projects.

Railway expansion on agenda

Beyond immediate green financing, De Groot identified railway infrastructure as a prospective area for deeper cooperation, noting that Ankara maintains ambitious plans to expand and modernize its network. "I know the government of Türkiye has great plans to expand and modernize the railway infrastructure. This is something we do within the EU too," he told reporters. "So, we have great expertise there, so maybe this is an area where we could be of assistance."

The EIB operates as the lending arm of the European Union and stands as one of the largest multilateral development banks globally, providing credit and technical support to projects in more than 160 countries since 1958. De Groot expressed hope that a strong project pipeline would be built up quickly following his discussions in Ankara, Istanbul, and Hatay.

EU defense investments

De Groot also addressed the EIB's evolving role in European defense capabilities, explaining that EU leaders have requested the bank support infrastructure and manufacturing investments that have been neglected for decades. "The financing has to do with the infrastructure, which has been neglected for decades, and now we have to rebuild our infrastructure to be able to defend ourselves," he said. The bank is additionally funding research and development for new defense technologies while supporting small and medium enterprises within the supply chains of major European contractors.