IFC Supports Çimsa’s Ambitious Decarbonization Plans in Türkiye

• IFC invests $70 million to reduce leading cement producer’s carbon intensity, boost sustainable cement production.
• Project will support the harmonization of Türkiye's climate targets with economic growth by helping to increase cement exports.
• Project also demonstrates the viability of such investments to other Turkish cement producers.

Istanbul, Türkiye, November 4, 2024—IFC has announced a $70 million green loan to Çimsa Çimento San. ve Tic. A.Ş. (Çimsa), a leading cement manufacturer in Türkiye, to support its ambitious decarbonization project, and help the company increase its competitiveness through improved efficiency.

IFC’s investment will help fund Çimsa’s decarbonization plans, which include energy efficiency investments, modernization, and the installation of solar photovoltaic panels. Improvements in waste heat recovery systems and increased use of renewable energy are expected to help Çimsa reduce its greenhouse gas emissions by approximately 10 percent.

This green financing–the first of its kind for Çimsa–is expected to increase the company’s use of renewable energy to 20 percent by 2025. Additionally, IFC's Cement Decarbonization Tool Advisory Service will help Çimsa identify operational improvements for its existing assets and further decarbonization-related investments to achieve its sustainability targets.

“Çimsa sees sustainability as essential to the new economy,” said Umut Zenar, CEO of Çimsa. “Through our investments in alternative fuels, renewable energy, and clinker reduction, we are committed to pioneering this transformation within the sector. By embedding sustainability across our products, facilities, and supply chain, we aim to inspire change industry-wide and lead Türkiye’s green transformation.”

Türkiye is the second largest cement exporter globally, with Çimsa making a significant contribution to this ranking. As cement production is considered a hard-to-abate sector with significant greenhouse gas emissions, this project also sets a precedent for sustainable practices in the Turkish cement industry.

“This investment underscores our commitment to supporting sustainable development in Türkiye,” said Lukas Casey, IFC’s Manager for Manufacturing, Agribusiness and Services in the Middle East, Central Asia and Türkiye. “Supporting Çimsa in reducing its carbon footprint not only advances environmental sustainability but also boosts the Turkish cement industry competitiveness, demonstrating that these two objectives can effectively complement each other.”

Aligned with Türkiye’s broader economic and environmental goals, Çimsa's commitment to Science Based Targets initiative-approved sustainability targets includes achieving sustainability milestones by 2033 and reaching carbon neutrality by 2050. This project will help the country meet its net-zero emissions target by 2053 and comply with the EU’s Carbon Border Adjustment Mechanism (CBAM), set to be fully implemented by 2030.