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MidSEFF Participating Banks

Akbank Denizbank Finansbank Garanti Trükiye Ýþ Bankasý Vakıfbank YapıKredi

Developed by

European Bank

Supported by

European Union European Investment Bank

Project Consultant Team

MWH DAPPOLONIA GFA Envest Frankfurt School

Carbon Finance Team

Climate Focus GAIA Triodos Facet

MidSEFF offer Carbon Consultancy Services support to sub-borrowers and Participating Banks through the assistance of a dedicated Carbon Finance Consultant whose aim is the development of the Turkish Carbon Market.

A Carbon Finance Team, selected by the EBRD, will assist Project Sponsor and Participating Banks in preparing a select number of the Facility's Sub-projects as Carbon Projects, i.e. projects that can generate Carbon Credits, to realise carbon monetisation and to assist in creating an enabling environment for carbon market development, and if possible lead to a future link into a wider regional or global regulated carbon market.

The Facility is intended to contribute to the development of the carbon market in Turkey and its objectives are:

  • At Sub-project level: Develop Carbon Projects - Provide assistance to Sub-borrowers to develop the carbon assets of projects financed under MidSEFF, assist them in the registration of the emission reduction projects (Renewable Energy, Energy Efficiency and Waste to Energy) as "Carbon Projects", so that these projects would generate an additional revenue stream from the sale of Carbon Credits. This would include the following support:
    • Preparation of the Project Idea Note document for the Carbon Governance Body (CGB), if required;
    • Preparation of the Project Design Document, including Monitoring Plan, according to the selected standard (VCS, Gold Standard or any other);
    • Assistance in the independent PDD validation/determination, as approved by CGB;
    • Training for the monitoring of the Emission Reduction;
    • Monetisation of the Carbon Credits through the project registration with the CGB and/or Emissions Registry;
  • At Facility level: Develop Participating Banks' Carbon Market Services - Building capacity by engaging, developing, structuring and providing training to PBs so they can provide Carbon Market Services to both Sub-borrowers and Carbon Credit buyers, e.g. by developing the relationships between the national and international Voluntary Emission Reduction buyers, and providing carbon related banking services;
  • At National level: Provide capacity building to Turkey - to support the carbon market development in Turkey in co-operation with sovereign and private sector stakeholders, including (but not limited to): i) determining a standardized carbon emission factor for electricity, ii) setting standard for bankable Emission Reduction Purchase Agreement, iii) making operational sovereign regulated Carbon Project / VER registry for Turkey; and iv) analyse and disseminate results and make recommendations towards a (regulated) domestic carbon market and its integration into regional and global carbon markets.

In order to develop the long term sustainability of this carbon market development, the Carbon assistance at facility and sub-project levels will be done on cost recovery basis for both the technical assistance and Bank resources dependent on realising successful Carbon Credit monetisation.

The Carbon Project development Services will cover all Carbon Project development costs incurred by the Carbon Finance Consultants, PBs and EBRD to qualify and register the Carbon Credit project with a CGB.

Only after the registered project starts generating income from the sale of the carbon credits, the PS will be required to (i) pay a cost recovery fee and (ii) share the benefit by paying a commission fee. There are therefore no upfront cost for the Sponsor and the Bank for consultancy and all payments are linked to successful development and monetisation of the carbon assets. This aspect minimises significantly the development risks connected to the Carbon Finance.