Highlights
- 80 million loan to Ulusoy Un for domestic green capital expenditure and energy efficient investment programme
- Plans include expansive renewable energy investments for internal consumption in solar power plants in central Anatolia and wind power plants in the Aegean region
- Ulusoy committed to developing and raising corporate climate reporting standards
The European Bank for Reconstruction and Development (EBRD) is providing an 80 million loan to Türkiye's Ulusoy Un to finance the company's long-term renewable energy capex and energy efficient capacity expansion.
The EBRD loan includes US$ 9.5 million ( 9 million) from the Clean Technology Fund (CTF) under the Bank's High Climate Impact Programme.
Loan proceeds will, in part, finance a renewable energy investment programme in solar power plants in central Türkiye. They will also support Ulusoy Un as a first-time mover for the sector in wind power plants in western Türkiye. The uptake of wind power plants by corporates in Türkiye is low, given the complexity of these projects relative to solar power.
The concessional loan will enable Ulusoy Un to adopt advanced corporate climate governance practices and significantly reduce its carbon footprint. The outcome-linked nature of the concessional tranche will facilitate the adoption of the Taskforce on Nature-related Financial Disclosures-aligned practices, which will ensure that Ulusoy not only mitigates climate risks but also addresses broader environmental challenges, positioning itself as a leader in sustainability within the agri-foods industry.
EBRD Head of Food and Agribusiness, Natalia Zhukova, said: "Currently, only a limited number of companies in Türkiye's food processing industry disclose climate-related risks or have targets to reduce greenhouse gas emissions in line with best practices. We at the EBRD hope that by supporting Ulusoy Un in that project we can set an example in the sector of what should be done to protect the environment, reduce the carbon footprint, and be in line with the Paris Agreement in a sector that is a significant contributor to global carbon emissions and vulnerable to climate change."
Chair of the Board at Ulusoy Un, Dr Eren Günhan Ulusoy, commented: "At Ulusoy Un we care about the future and aim to reduce our carbon footprint by focusing on renewable energy in our investments. In this regard, we are pleased to have signed a loan agreement of 80 million with the EBRD."
The EBRD is one of Türkiye's key investors, having committed more than 21 billion in the country since 2009 through 461 projects and trade finance limits, most of it in the private sector.
