First EBRD loan to Türkiye’s cement sector to boost low-carbon investments

This article is brought to you in association with EBRD.

• Loan to Cimsa for decarbonisation investments
• Project in line with EBRD-led “low-carbon pathway” initiative
• Cimsa to introduce new diversity measures

The European Bank for Reconstruction and Development (EBRD) is providing a €25 million loan to Türkiye’s Cimsa to finance the company’s decarbonisation investment programme.

The proceeds of the loan will finance the installation of a solar power plant, a waste heat recovery plant, a new silo and resource-efficiency process, and technology upgrades at the company’s Eskisehir plant.

The EBRD is committed to align its activities with the goals of the Paris Agreement on climate change. Within this direction, the loan follows the launch of the “low-carbon pathway” (LCP) initiative, led by the EBRD, which focuses on the decarbonisation of energy-intensive industries such as steel, cement, aluminium, and fertiliser.

Addressing climate change remains a significant goal for Türkiye, which has set itself a 2053 net-zero target. To reach net zero, Türkiye needs around US$ 10 billion in financing annually through 2030.

Based on extensive engagement with sector associations and relevant stakeholders, the findings of the LCP study provide clear signals to private industry players, financiers and investors on the technology requirements and timing of decarbonisation investments, enabling greater understanding of the risks involved and informing the development of specific financing plans.

The cement-sector LCP recommends various actions for the decarbonisation of the sector, including a reduction in clinker use in cement production, carbon capture, utilisation and storage technologies, waste heat recovery, alternative fuel use, green energy, and process improvement.

EBRD Türkiye Deputy Head Erdem Yasar said: “the LCPs seek to enable private-sector representatives to set clear roadmaps for a net-zero future. We are pleased to see the very first step towards this in our partnership with Cimsa. As cement remains one of the most carbon-heavy industries, we are confident that this project will be exemplary in the sector and provide guidance to all players who seek to boost their green investments.”

Cimsa, a leading player in producing and selling cement, clinker, ready-mix concrete and other construction materials, has a long-term strategy that combines global growth and green transition. The Science Based Targets Initiative recently validated the company’s commitments to carbon reduction.

Çimsa CEO Umut Zenar said: “As Çimsa, we are determined to advance our sustainability goals and take important steps in our energy efficiency and decarbonization efforts. This collaboration with the EBRD represents a significant milestone in our journey towards a greener future.”

“This loan will not only support our investments in our solar energy and waste heat recovery facilities, but will also increase our operational efficiency. We are proud to be the first cement company in Turkey to receive this type of financing from the EBRD, reflecting our commitment to leading the industry in sustainability initiatives. We would like to thank the EBRD for their trust and support in this important initiative.”

The EBRD is one of Türkiye’s key investors, with more than €19.8 billion invested through 442 projects and trade finance limits since 2009, most of it in the private sector.