Treasury and Finance Minister Şimşek Delivers Renewable Energy Message at COP31

Treasury and Finance Minister Mehmet Şimşek stated in his speech at the Global Finance Summit within the scope of COP31 that renewable energy investments will continue, this transformation will reduce dependence on energy imports, and $300 billion in funding is needed for the decarbonization of industry.

Treasury and Finance Minister Mehmet Şimşek made statements regarding Turkey's energy policies and fiscal stance at the Global Finance Summit held within the framework of COP31. Şimşek reported that despite spending over $100 billion to rebuild infrastructure after the earthquake, the budget deficit stands at 3 percent of the Gross Domestic Product. Stating that the goals are to decarbonize the energy system and expand electrification, Şimşek said this transformation will reduce dependence on energy imports and macrofinancial risks.

Minister Şimşek stated that they aim to reach 175 gigawatts of solar and wind energy by 2040, and expressed that decarbonization is a necessity since more than half of exports are made to Europe. Reminding that more than 70 percent of Turkey's primary energy sources are imported and that approximately $600 billion has been paid for oil and natural gas imports in the last 10 years, Şimşek noted that about $300 billion in funding is needed for the decarbonization of industry. Şimşek emphasized that public resources alone will not be sufficient in this process, and private capital must be mobilized with the support of multilateral development banks such as the World Bank and the EBRD.