EBRD and IFC study identifies climate change opportunities for Turkish businesses

EBRD and IFC study identifies climate change opportunities for Turkish businesses

Small and medium-sized businesses (SMEs) in Turkey are increasingly concerned about the scale of the climate challenge facing their operations. In a country where water scarcity is a growing problem, their anxiety is not unfounded. SMEs also struggle to decide on the most effective strategies to reduce climate risk, according to a ground-breaking study, funded by the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC). The study identifies opportunities for business investment to effectively manage the risks associate with climate change.

The ‘Pilot Climate Change Adaptation Study: Turkey, identifies priority actions for Turkish businesses to increase their climate resilience. The research, undertaken by Acclimatise, Mavi Consultants and COWI, aims to help businesses identify the measures that make business sense.

“The private sector in Turkey will need to be more climate-resilient, and with this research it can prepare for climate change in ways that also make good business sense,” said Stephanie Miller, Director of Climate Business at IFC, a member of the World Bank Group.

45% of Turkish businesses surveyed for the study said they had been significantly affected by a climate-related event in the last three years. Most businesses contacted by the researchers said they lacked information about how to identify and implement concrete actions to prepare for a changing climate.

To address this, the study identifies and prioritises specific, market-based tools and steps to improve water efficiency, such as drip irrigation and drought-resistant seeds for agriculture, with a potential return on investment of up to 64%.

According to the study, improved process efficiency, recycling and water re-use can provide potential returns of up to 30% in the agri-processing, manufacturing or municipal sectors. Climate-smart solutions for buildings, such as heat-reflective glazing, rainwater harvesting, surface water drainage and improved ventilation can also have significant impacts with manageable upfront costs.

“There are significant opportunities for Turkish businesses to invest in climate-resilient technologies and practices, which can also generate a good return on investment,” said Craig Davies, Senior Manager for Climate Change Adaptation at the EBRD. “We are also engaging with other international agencies and financial institutions in Turkey to further strengthen the country´s climate resilience frameworks and develop new financing mechanisms.”

The report, undertaken in conjunction with the Union of Chambers and Commodity Exchanges of Turkey (TOBB) and the Ministry of Environment and Urbanization (MoEU), describes water scarcity as an increasing risk for Turkey due to climate change and its impact on precipitation, including more frequent droughts and hot spells.

“Businesses in Turkey welcome the practical information and recommendations on how to manage climate change impact and leverage new commercial opportunities,“ said Rifat Hisarcıklıoğlu, President of the Union of Chambers and Commodity Exchanges of Turkey.

Download the study by clicking here.

Cover photo by Engin Eselioğlu on Unsplash: Yavuz Sultan Selim Bridge.

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