Türkiye's three state-owned banks are expanding financing programs to help small and medium-sized enterprises (SMEs) meet growing environmental standards, as the global shift toward greener production reshapes international trade and competition.

Representatives of Ziraat Bankası, Halkbank and VakıfBank outlined their financial support plans during a panel on financing the green transition held at the U.N. Climate Change Conference COP31 in Antalya.

The discussion, organized by Turkuvaz Media and broadcast on A Para, was moderated by Uğur Korkmaz, deputy news director at A Para.

The panel brought together Berrin Mahmutoğlu, head of sustainability at Ziraat Bankası; Murat Yıldırım, deputy general manager of Halkbank; and Sibel Sağman, head of strategy, product development and corporate development at VakıfBank.

The speakers stressed that smaller businesses must be part of the transition if Türkiye is to remain competitive in international markets, particularly as environmental requirements increasingly influence trade, production and supply chains.

They said the public lenders were directing resources toward businesses of all sizes, with dedicated loan packages, international financing agreements and investment support designed to accelerate the shift to more sustainable production.

" As public banks, we contribute to the transformation of not only large corporations but also our SMEs. Our support will continue to increase," the participants said.

Carbon rules make transition unavoidable

Mahmutoğlu highlighted the importance of SMEs to the Turkish economy, warning that businesses must adapt quickly to changing international trade requirements.

Türkiye is the world's 16th-largest economy, she said, with more than 40% of its market linked to Europe. That exposure makes the European Union's Carbon Border Adjustment Mechanism (CBAM), which began entering its definitive phase this year, particularly important for Turkish exporters.

"That is why the transition is now unavoidable," Mahmutoğlu said.

She pointed to electrification and industrial investment as major priorities, estimating that Türkiye needs TL 15.1 trillion ($300 billion) in investment to transform its energy sector. The country must also direct substantial resources toward essential industrial upgrades, she added.

Ziraat Bankası has introduced several financing instruments to help companies meet these requirements, including a Carbon Border Reduction Package launched two years ago for exporters. The program aims to help participating businesses reduce their carbon emissions by 20%.

The bank has also introduced a Green Export Loan targeting SMEs, recognizing that smaller suppliers must adapt alongside large corporations.

Mahmutoğlu said Ziraat Bankası had recently announced a major financing package for organized industrial zones and the companies operating within them, with the bank seeking to connect businesses with resources for sustainable investments.

Ziraat secures $2.9 billion in syndicated financing

Mahmutoğlu said Ziraat Bankası had secured $2.9 billion in syndicated financing linked to sustainability this year and planned to sign agreements for an additional $2 billion in sustainability-linked funding during COP31.

She also identified agriculture and food security as central to the country's green transition, noting that more sustainable farming practices would become increasingly important as environmental standards tighten.

" Agriculture is one of Ziraat Bankası's strongest areas," she said, adding that the lender works with more than 1 million farmers and has a loan portfolio exceeding TL 1 trillion.

The bank holds a 70% share of the agricultural banking market, according to Mahmutoğlu, who said it was encouraging the adoption of good agricultural practices and organic farming.

Ziraat Bankası has also established targets to reduce emissions intensity in the production of wheat, corn and rice.

She said improving agricultural production methods would be essential to reducing environmental impacts while maintaining reliable food supplies.

Halkbank rolls out TL 100 billion package

Yıldırım said the changing rules of global trade were forcing businesses to reconsider how they produce goods, manage resources and measure their environmental impact.

Companies are increasingly judged not simply by how much they produce but also by how efficiently they use resources and how much environmental damage their operations cause, he said.

This shift makes green financing particularly important for SMEs, which play a central role in Türkiye's production and employment and are often part of the supply chains of larger corporations.

Yıldırım said COP31 had helped raise awareness among smaller businesses, with several SMEs approaching the bank during the conference to inquire about available financing for their green transition.

He described expanding access to funding and ensuring that smaller businesses could participate in the transition as an important responsibility for public banks.

In response, Halkbank has introduced a Sustainability Transformation Package worth approximately TL 100 billion, designed to finance investments across a wide range of sectors.

The package covers 31 areas of business needs, providing loans for companies seeking to improve their environmental performance and modernize their operations.

Yıldırım said the bank had substantial financial resources available to support businesses as they adapt to increasingly demanding sustainability requirements.

He stressed that the transition could not be limited to large companies, particularly because smaller suppliers must also meet the environmental standards imposed by major businesses and international markets.

VakıfBank commits $7 billion to sustainable financing

Sağman said Türkiye was entering a new period in which development-focused banking and investments that generate long-term value would become increasingly important.

VakıfBank has introduced its Value for the Future Package, reflecting its approach to financing businesses and projects that support sustainable economic development.

She said traditional lending alone would not be sufficient to meet the scale of investment required, making international partnerships and development-focused financing increasingly important.

VakıfBank secured $9 billion in international funding this year, of which $7 billion is earmarked for sustainability-related investments, Sağman said.

The bank also signed new agreements worth $1.7 billion during COP31, securing specialized funding for specific investment areas with maturities of up to 20 years.

In addition to international resources, VakıfBank announced TL 50 billion in financing under its Value for the Future models, backed by guarantees from the Credit Guarantee Fund (KGF) and the Export Development Inc. (IGE).

The financing package covers several investment areas, with the bank seeking to diversify its lending models and make funding more accessible to businesses pursuing sustainable projects.

Sağman added that VakıfBank also provides advisory support to companies navigating the transition, helping them identify opportunities to improve their operations and strengthen their competitiveness.

She said the bank wanted to stand alongside businesses as they adapted to new environmental expectations and sought to distinguish themselves in increasingly competitive markets.