Türkiye's Simsek: Climate action protects growth, stability

Treasury and Finance Minister Mehmet Simsek on Tuesday warned that climate change poses an immediate threat to global economic stability, telling the Net Zero Delivery Summit in London that environmental protection and prosperity are inseparable priorities as Türkiye prepares to host the COP31 climate conference.

Implementation over targets

Simsek said the past decade of climate diplomacy has focused excessively on setting commitments while neglecting the mechanics of delivery, noting that most nations already possess ambitious decarbonization goals. "Most countries already have ambitious targets. The real question is whether we can implement these plans at the speed and scale required," he said.

He warned that the cost of failing to address global warming would vastly exceed the investment needed for prevention, citing studies showing the economic impact of inaction multiplies disaster recovery expenses. "If we fail to tackle climate change, the cost will be extremely high. Most studies show that the cost of inaction is many times greater than the cost of preventing a climate catastrophe," Simsek stated.

Climate finance shortfall

Developing countries excluding China require approximately $2.5 trillion annually by 2030 to meet climate objectives, while current global finance flows total merely $200 billion per year, Simsek noted. "We are far from the scale required," he said, adding that the challenge lies not in capital scarcity but in mobilizing resources toward investable projects at sufficient velocity.

Only one-quarter of climate-related losses worldwide are currently insured, leaving households, corporations and governments to absorb the remaining burden, he observed. The minister called for a simpler, faster and more effective climate finance architecture with lower capital costs and improved access to funding.

COP31 agenda

Simsek said Türkiye aims to bridge the implementation gap through its Climate Implementation Bridge initiative, designed to convert national priorities into bankable project pipelines. "Now the real question is how we turn these commitments into concrete results. This is precisely where Türkiye hopes to contribute as this year’s COP31 president," he stated, confirming that Antalya will host the summit.

The agenda will prioritize electrification, targeting a rise in electricity's share of final energy consumption from 20% to 35% by 2035, alongside waste management, urban sustainability and ocean conservation. The COP31 Business Forum launched this week with the Union of Chambers and Commodity Exchanges of Türkiye (TOBB) will reconvene during New York Climate Week, while Istanbul hosts Climate Finance Week in September.