The World Bank Implementation Status & Results Report Türkiye Industrial Emissions Reduction Project (P180762) Türkiye Industrial Emissions Reduction Project (P180762) EUROPE AND CENTRAL ASIA | Turkiye | IBRD/IDA | Investment Project Financing (IPF) | FY 2024 | Seq No: 2 | Archived on 13-Dec-2024 | ISR02360 Implementing Agencies: TÜRKİYE KALKINMA VE YATIRIM BANKASI A.S. (TKYB) 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 28-Mar-2024) The project development objective is to reduce the emissions of air pollutants and greenhouse gases from selected industry sectors of Türkiye. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Investments in industrial emissions reductions :(Cost 500,040,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate 4. KEY ISSUES & STATUS 4.1 Implementation Status and Key Decisions The Türkiye Industrial Emission Reduction (TIER) Project met the conditions for effectiveness on 14 August 2024. Implementing agency TKYB has commenced a campaign to market TIER loans to Turkish industry, prioritizing large, well-established firms. A first loan ($50 million of TIER funding leveraging an additional $133.5 million in Dec 13, 2024 Page 1 of 7 The World Bank Implementation Status & Results Report Türkiye Industrial Emissions Reduction Project (P180762) private capital) is expected to be presented to the TKYB Board for approval before the end of the calendar year and a second loan ($4.7 million from TIER; $1.76 million in additional capital) before end-January. The pipeline includes three other prospective projects that are at an early stage of discussion. The pipeline includes potential loans to iron & steel, cement, aluminum, and electrical motor manufacturing companies. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 01 - 28 Jun Proposed Rating 28 Mar 2024 2024 Political and Governance Low Low Low Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Low Low Low Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Substantial Substantial Substantial Stakeholders Low Low Low Overall Moderate Moderate Moderate Dec 13, 2024 Page 2 of 7 The World Bank Implementation Status & Results Report Türkiye Industrial Emissions Reduction Project (P180762) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes To reduce the emissions of air pollutants and GHGs from selected industry sectors of Türkiye. Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Reduction in annual average 0 Dec/2023 0 26-Jun-2024 0 10-Dec-2024 -40 Nov/2029 emissions of particulate Comments on The difference between the annual emissions of dust (PM10) after emission reduction matter (Dust/PM10) from the achieving targets investments at project beneficiary installations and the annual emissions of PM10 before the investments in project investment (i.e. baseline) over the same time horizon, averaged across all investments, and beneficiary installations presented as percentage. (Percentage) Reduction in annual average 0 Dec/2023 0 26-Jun-2024 0 10-Dec-2024 -30 Nov/2029 emissions of Nitrogen Oxides Comments on The difference between the annual emissions of nitrogen oxides (NOx) after emission (NOx) from the investments in achieving targets reduction investments at project beneficiary installations and the annual emissions of NOx project beneficiary before the investment (i.e. baseline) over the same time horizon, averaged across all installations (Percentage) investments, and presented as percentage. 0 Dec/2023 0 26-Jun-2024 0 10-Dec-2024 -220,000 Nov/2029 Net GHG emissions per year Comments on Annual average of the difference between absolute (project) Scope 1 and Scope 2 Greenhouse from Project beneficiaries achieving targets (GHG) gas emission and indirect GHG emissions from other sources (Scope 3) on a case-by- (metric ton per year) (Metric case basis, aggregated over the economic lifetime of the Project, and the emissions of a tons/year) baseline scenario (i.e., business-as-usual) over the same time horizon. Page 3 of 7 The World Bank Implementation Status & Results Report Türkiye Industrial Emissions Reduction Project (P180762) 6.2 Intermediate Results Indicators by Components Investments in industrial emissions reductions Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year The number of industrial 0 Dec/2023 0 26-Jun-2024 0 10-Dec-2024 20 Nov/2029 installations adopting air Comments on The number of industrial installations adopting air pollutant and GHG emission reduction pollutant and GHG emission achieving targets measures financed by individual sub-loans from TKYB under this Project. reduction measures financed by sub-loans (Number) 0 Dec/2023 0 26-Jun-2024 0 10-Dec-2024 83,340,000 Nov/2029 Comments on Amount of private capital mobilized at project beneficiary level in million USD. PCM at the deal The amount of private capital achieving targets level can be mobilized for instance through (i) co-investment, (ii) capital raising by other mobilized (Amount(USD)) shareholders in conjunction with the investment, and (iii) additional debt financing in conjunction with the investment. Average maturity of sub-loans 1 Dec/2023 1 26-Jun-2024 1 10-Dec-2024 1.20 Nov/2029 as compared to average Comments on The ratio of the average maturity of sub-loans under the Project compared to the average maturity of comparable sub- achieving targets maturity of TKYB’s benchmark loan portfolio. This indicator is to measure the availability of loans in TKYBs portfolio long term-financing to industrial firms for emission reduction investments by comparing (Ratio) (Number) TKYB’s other representative portfolio. Share of reflow amount used 0 Dec/2023 0 26-Jun-2024 0 10-Dec-2024 15 Nov/2029 for additional emission Comments on Share of the reflow amount from sub-borrowers used for additional emission reduction sub- reduction measures to total achieving targets loans to total amount of sub-loan exposure by TKYB until the end of project closing sub-loan exposure of TKYB by the end of the project implementation (Percentage) Page 4 of 7 The World Bank Implementation Status & Results Report Türkiye Industrial Emissions Reduction Project (P180762) Average compliance of 15 Dec/2023 15 26-Jun-2024 15 10-Dec-2024 55 Nov/2029 Project beneficiary Comments on The share of IED Annex I project beneficiary installations that are compliant with IED BAT-AELs installations with IED BAT- achieving targets for the target pollutants under the sub-project. AELs for the target pollutants under the sub-project (Percentage) Non-performing loans (NPL) 0 Dec/2023 0 26-Jun-2024 0 10-Dec-2024 <5 Nov/2029 under the project Comments on NPLs under the project divided by total loans under the project. (Percentage) achieving targets Share of Project beneficiaries 26 Dec/2023 26 26-Jun-2024 26 10-Dec-2024 50 Nov/2029 that are women-inclusive (Percentage) Share of Project beneficiaries 0 Dec/2023 0 26-Jun-2024 0 26-Jun-2024 90 Nov/2029 that report sub-loan reflect their needs. (Percentage) Page 5 of 7 The World Bank Implementation Status & Results Report Türkiye Industrial Emissions Reduction Project (P180762) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed Historical Disbursed IBRD-96680 Effective 416.70 416.70 0.00 36.05 380.66 8.65% 416.70 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IBRD-96680 Effective 28-Mar-2024 18-Apr-2024 14-Aug-2024 30-Nov-2029 30-Nov-2029 8. KEY DATES Dec 13, 2024 Page 6 of 7 The World Bank Implementation Status & Results Report Türkiye Industrial Emissions Reduction Project (P180762) Key Events Planned Actual Approval 28-Mar-2024 28-Mar-2024 Effectiveness 14-Aug-2024 14-Aug-2024 Mid-Term Review No. 01 05-Jun-2026 Operation Closing/Cancellation 30-Nov-2029 9. RESTRUCTURING HISTORY 10. ASSOCIATED OPERATION(S) There are no associated operations Dec 13, 2024 Page 7 of 7