AFD AND TURKEY

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ia Partners for sustainable development

AGENCE FRANÇAISE DE DÉVELOPPEMENT’S STRATEGY IN TURKEYAFD’s action in Turkey is part of its regional operations in the Mediterranean and contributes to strengthening the Franco-Turkish partnership on climate change and environmental issues. The aim is to provide joint responses to preserving Mediterranean ecosystems and limiting greenhouse gas emissions.

TURKEYTurkey, an emerging power in the Euro-Mediterranean region, is experiencing remarkable economic and social development. With a population of 75 million inhabitants and per capita income at USD 10,000, Turkey has climbed to 17th position among the world’s economic powers. The country is a member of both the OECD and “G20” Economic Forum, a candidate for EU membership, and plays a key role between Central Asia, the East and the West.In order to meet challenges posed by employment, energy and the environment, together with marked regional disparities, Turkey has embarked on a path of more inclusive and low-carbon growth, fully integrat-ing the place of people in society. Turkey ratified the

Kyoto Protocol in 2009; it has defined a strategy to combat climate change and renewed its commitment to sustainable development at the United Nations Rio+20 Conference.Cooperation between France and Turkey is based on a long-standing relationship, close consultation on the major issues on international and regional agendas, and significant levels of trade. A framework agreement on bilateral cooperation for environmental protection was signed in 1996. AFD has been directly contribut-ing to this bilateral cooperation, which concerns the major issues of common interest for the sustainable development of our economies and societies, since it opened an agency in the country in 2005.

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AFD supports the priority objectives defined by Turkey in this field and its operations are in line with the sectoral policies implemented by the country:

To ensure the sustainable growth of their territory by reducing the carbon footprint: AFD contributes to investment in renewable energy and promoting energy efficiency in industrial enterprises, particularly small- and medium-sized enterprises (SMEs) and in housing. AFD supports local authorities which implement a sustainable development plan in their territory;

To preserve regional public goods: AFD supports projects which contribute to combating climate change, preserving water resources, de-polluting the Mediterranean and protecting biodiversity;

To promote a rebalancing of territorial development: AFD works in the regions of the Eastern Anatolian plateau by supporting SME investment and the sustainable development of regional cities.

OUR FORMS OF ACTION AFD works with the public sector (central government, State-owned companies and local authorities) and, via its subsidiary Proparco, with the private sector (banks and companies).

AFD has a wide range of financial tools tailored to the projects it finances. It offers long-term loans on preferential terms. It finances studies and technical support for projects via grants.

AFD is committed to establishing partnerships between French, Turkish and Mediterranean stakeholders. It mobilizes French expertise, supports decentralized cooperation activities between Turkish and French cities, and creates networks among civil society stakeholders. It involves its Turkish partners in regional cooperation activities.

Meeting investment requirements in urban transport.

MEASURABLE IMPACTS

Over a billion euros of investments made.

Some 500 MW of installed renewable energy capacity (wind, mini-hydro power, biomass and geothermal).

Expected energy savings of some 1,500 GWh a year.

A reduction of over 2 million tons of CO

2 emissions every year.

Turkey aims to enhance its energy efficiency, while limiting its greenhouse gas emissions.

The EUR 350m “Energy Efficiency/Climate Change” program conducted by AFD aims to promote a low-carbon economy.

Investing in greater energy efficiency

AFD offers loans to industrial enterprises and SMEs for their energy-saving investments via partner banks, such as Halkbank, TEB and TSKB. These financial resources are allocated on customized terms and contribute to removing investment barriers and developing an energy efficiency market in Turkey.

1st FOCUS AREA: PROMOTE LOW-CARBON GROWTH

The Turkish “People’s Bank”, Halkbank, supports SMEs’ energy-efficiency investments.

This program comprises technical assistance activities (energy audits and training) for companies.

The French Global Environment Facility (French GEF) is also supporting the technical assistance program for KOSGEB, the public SME support agency. This program aims to define and implement its policy to promote energy saving in Turkish companies.

Participating in the development of renewable energy

AFD and Proparco, its private sector financing arm, support renewable energy development via partner banks such as TSKB, Garanti Bankası, İş Bankası and Aklease, as well as direct investments.

Each year, the Nuh Cimento cement plant’s cogeneration-based drying unit contributes to treating 55,000 tons of sludge and reducing greenhouse gas (GHG) emissions by some 45,000 tons.

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Proparco supports the development of wind energy.

MEASURABLE IMPACTS

2,010 SMEs supported.

9,090 companies aware of Corporate Social Responsibility (CSR).

5,323 bank officers trained in CSR.

2nd FOCUS AREA: RAISE BUSINESS AWARENESS OF CORPORATE SOCIAL RESPONSIBILITY

AFD supports small and medium sized enterprises (SMEs) via credit lines allocated to partner banks, such as Halkbank and TEB. SME access to credit remains a major obstacle to the development of the economy and access to employment. Corporate Social Responsibility (CSR) has positive impacts on human resources, the environment, procurement policies and risk management. It can therefore provide a response to the different challenges are facing SMEs and make them more competitive, both at the local level and in the export market. The aim of promoting CSR in banks is to strengthen their policies in these areas and make their clients aware of the interest of adopting best practices.

3rd FOCUS AREA: PRESERVE AND DEVELOP NATURAL RESOURCES

In a context of rapid growth, preserving natural resources (water, soil, biodiversity, etc.) is a major challenge in Turkey.

Forests, which constitute important natural capital, cover roughly 28% of the surface area of the country. Some 20,000 villages (7.5 million people) are located in or around forests and are partly dependent on them. Forests are therefore an essential part of economic life in rural areas.

AFD contributes to preserving natural wealth by supporting the Ministry of Forestry and Water Affairs’ activities for afforestation, rehabilitation and the fight against erosion and forest fires. In conjunction with a loan allocated to the Government, a partnership between the Turkish General Directorate of Forestry and the French National Forestry Office contributes to the development of sustainable forest management and, more particularly, to climate change adaptation.

Afforestation program on the Anatolian plateau.

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In a context of rapid urban growth, Turkish municipalities are key partners to ensure a more balanced and sustainable development. AFD directly supports local authorities’ investment programs with the aim of increasing access to basic services for communities (transport, water, sanitation and waste management). Local authorities’ investment requirements for environmental infrastructure are estimated at over EUR 50bn for the period 2007-2023.

AFD’s partnership with DenizBank also provides financing tailored to medium-sized municipalities which implement projects with strong social and environmental impacts.

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The “Sustainable City Conference” organized by AFD in partnership with REC and DenizBank in Istanbul in November 2011.

Cities are the main source of greenhouse gas emissions and are facing a need to design their urban planning with a holistic approach that is sustainable over the long term. AFD is supporting the Gaziantep Metropolitan Municipality in its groundbreaking approach to establish a territorial climate/energy plan, which defines the strategy and implements the city’s priorities for climate change adaptation.

MEASURABLE IMPACTS

1,035 tons of CO2 and 2,446 tons of fuel have been saved every year by financing the Istanbul metro.

To date, over 30 municipalities have benefited from the Denizbank-AFD partnership.

Capacity building activities, such as study trips, training and conferences, have raised the awareness of municipalities.

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AFD is supporting Istanbul Metropolitan Municipality’s program to develop sustainable transport.

4th FOCUS AREA: SUPPORTING MUNICIPALITIES IN THEIR SUSTAINABLE DEVELOPMENT

This brochure respects the environment and was printed using vegetal ink on PEFC™ certified

paper (sustainable forest management).

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AGENCE FRANÇAISE DE DÉVELOPPEMENT (AFD)

5 rue Roland Barthes 75598 Paris Cedex 12 – France

Tél. : +33 1 53 44 31 31 Fax : +33 1 44 87 99 39

www.afd.fr

AFD TURKEY

Agence Française de Développement Büyükdere Caddesi, Yapı Kredi Plaza

C Blok, Kat 12, 34330 Levent-I.stanbul

Tél. : (+90) 212 283 31 11 Fax : (+90) 212 283 31 51

turquie.afd.fr

FFEM www.ffem.fr

FFEM is a bilateral public facility set up by the French Government in 1994 following the Rio Summit. It aims at promoting global environmental protection via sustainable development projects in developing or transition countries. The French Global Environment Facility supports physical projects in recipient countries. Its operations are learning-based and support experimental, innovative or exemplary approaches.

www.proparco.fr

PROPARCO, AFD’s subsidiary dedicated to private investment, promotes private investment in emerging and developing countries in order to boost growth, promote sustainable development and reach the Millennium Development Goals. Its financing is tailored to the specific needs of investors in the productive sector, financial systems, infrastructure and private equity investment.

Agence Française de Développement (AFD) is a public development finance institution that has been working to fight poverty and foster economic growth in developing countries and the French Overseas Communities for seventy years. It executes the policy defined by the French Government.

AFD is present on four continents where it has an international network of seventy agencies and representation offices, including nine in the French Overseas Communities and one in Brussels. It finances and supports projects that improve people’s living conditions, promote economic growth and protect the planet, such as schooling for children, maternal health, support for farmers and small businesses, water supply, tropical forest preservation, and the fight against climate change.

In 2011, AFD approved nearly €6.9 billion to finance activities in developing countries and the French Overseas Communities. The funds will help get 4 million children into primary school and 2 million into secondary school; they will also improve drinking water supply for 1.53 million people. Energy efficiency projects financed by AFD in 2011 will save nearly 3.8 million tons of carbon dioxide emissions annually.

City of Gaziantep © AFD – Xavier Allard