The proceeds of the facility will be used to finance energy efficiency and small-scale renewable energy investments implemented by Turkish businesses and households, helping them to cut their carbon footprint by reducing energy wastage.

Turkish banks such as Akbank, Garanti Bank and Vakifbank will take up the facility, each signing up for $60m credit lines. The proceeds of the sub-loans will be used to finance investments such as industrial energy efficiency, thermal rehabilitation of buildings, small scale renewable investments, including geothermal, solar, biomass and biogas.

TurSEFF financing is supported by EUR6.8m in technical assistance grants, provided by the Clean Technology Fund and the European Union in collaboration with the Turkish Treasury.

The funds will be used to support the participating banks in developing financing instruments for energy efficiency projects, to help sub-borrowers design and implement such projects, and to increase the awareness about the benefits of sustainable energy investments.

TurSEFF is a part of the EBRD’s efforts to help countries reduce their energy intensity. Similar EBRD facilities are currently operating in Bosnia-Herzegovina, Bulgaria, Georgia, Hungary, Kazakhstan, FYR Macedonia, Montenegro, Moldova, Romania, Russia, Serbia, Slovakia and Ukraine.

Overall the EBRD has committed over $1.1bn to Sustainable Energy Financing Facilities (SEFFs) in these countries.

Nick Tesseyman, managing director of financial institutions at EBRD, said: ”The launch of TurSEFF underscores the EBRD’s firm commitment to help economies reduce their energy intensity and to promote the sustainable use of energy.

”The project will help small businesses and households become more energy efficient, which is particularly important as the prices for natural resources are rising.”