International Finance Corporation (IFC) has announced a $100 million five-year loan to QNB Finansal Kiralama A.Ş. (QNB Leasing), the Turkish arm of QNB Türkiye, to increase access to sustainable energy for small and medium-sized enterprises (SMEs) in Türkiye. The investment will help companies transition to renewable energy and increase energy efficiency, as well as blue finance operations to promote sustainable management of water resources.

Improving Access to Green Finance for SMEs

SMEs account for 99% of Türkiye’s businesses and are severely hindered in accessing long-term financing for renewable energy and energy efficiency ventures. The IFC loan will enable QNB Leasing to finance SMEs for equipment upgrades, reducing energy expenses, and also promoting sustainability.

QNB Leasing will allocate a minimum of 10% of the loan to blue finance projects for the sustainable management of water resources. This project will also offer a special chance to promote sustainable productivity growth in the country.

QNB Leasing’s Sustainable Finance Commitment

Osman Tas, the General Manager of QNB Leasing,stated that at QNB Leasing, they believe sustainable finance is not just an option, but a responsibility. He added that the collaboration with IFC marked a significant step forward in their mission to drive Türkiye’s economic growth through smart, sustainable investments. By supporting SMEs, they were fostering innovation, creating jobs, and contributing to a greener future. He expressed excitement about the collaboration with IFC and looked forward to expanding their joint efforts in the years ahead.

Also read: IFC Invests €100 Million to Support Sustainable Infrastructure in Bulgaria, Poland, and Romania

Empowering Türkiye’s Low-Carbon Transition

IFC is supporting the transition of Türkiye to a low-carbon economy by mobilizing private sector resources and providing creative financing solutions. The collaboration with QNB Leasing will trigger new opportunities for SMEs to expand and compete, while serving pressing environmental goals according to IFC Regional Industry Head Momina Aijazuddin. This project serves as a best practice for other leasing companies on how to upgrade their contribution towards sustainable financing.

This partnership supports IFC’s ongoing dedication to the leasing sector, offering small companies an alternative from traditional financing barriers. Türkiye has a portfolio of nearly $5.4 billion as of February 2025 and ranks as IFC’s third-largest country exposure globally.

Climate Impact Partners has entered into a new agreement with Terra Natural Capital to provide long-term financing for the Panna afforestation project inf India, from which Microsoft will buy 1.5 million tons of verified carbon removal credits over 30 years, covering 50% of the project’s output. This deal marks Microsoft’s largest carbon removal initiative in the Asia-Pacific region and its first in India.

Combining Expertise and Commitment for Climate Action

Panna afforestation initiative involves the integration of Climate Impact Partners’ experience in project design, Terra Natural Capital’s financial assistance, and Microsoft’s extended purchase commitment. All this partnership has resulted in planting 11.6 million native trees in 20,000 hectares of land, exceeding the size of Washington, D.C. The initiative has already planted more than 1.2 million trees in 100 communities.

Key Benefits of the Project

The Panna afforestation project provides several key benefits to local communities and the environment. Local farmers will earn from carbon credit sales and income generated by selling fruit and medicinal products from planted trees.

The project also promotes sustainable agriculture by offering climate-smart agricultural training to enhance long-term yields. In addition, the project has developed vast water networks like ponds, borewells, and drip irrigation to feed the trees and conserve water. The project further seeks to plant indigenous vegetation to enhance biodiversity as well as bring butterflies and birds to deforested lands.

Sheri Hickok, CEO of Climate Impact Partners, said that Microsoft, known for its bold climate leadership, is supporting the Panna project. She explained that by securing a long-term supply of high-quality carbon credits, the project helps companies like Microsoft meet their climate goals, drive growth in the carbon removal market, and bring benefits to communities most affected by climate change. She also noted that Panna showcases how companies can help scale large-scale carbon removal infrastructure.

Also read: Clearloop and Microsoft Expand Solar Energy in Underserved US Communities

Certified for High-Quality Carbon Removal

The Panna afforestation project follows Verra’s latest Afforestation, Reforestation, and Revegetation Methodology (VM0047) and has been approved for the ICVCM’s Core Carbon Principle (CCP) label. The project received an A rating from BeZero and will be verified under the Climate, Community, and Biodiversity Standard.