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ANKARA, October 8, 2015— If Turkey is to continue its trajectory of economic growth in a sustainable manner, energy efficiency will be of critical importance. The Government of Turkey has recognized this and has placed energy efficiency as a key component of both its energy strategy and its National Climate Change Strategy and Action Plan. However, while the overall policy framework is relatively strong, critical institutional and functional gaps remains which would prevent Turkey from realizing its stated energy efficiency goals, concludes a new World Bank report, Republic of Turkey: Institutional Review of Energy Efficiency.[1]

Energy efficiency poses a significant institutional challenge – how to help factories, building owners, public administrators and citizens understand the importance of energy efficiency, be able to make smart purchasing choices, access financing and realize actual energy savings. The report assesses Turkey’s institutional roles and functions by reviewing existing laws and documents, interviewing key public and private sector stakeholders, and comparing Turkey’s programs with international best practices.

The report makes an analysis across four major areas—policies and regulations, data and information, incentives and technical assistance, and monitoring and evaluation—to identify current responsibilities, gaps in relation to international best practices, and perceived overlaps and gaps across the main energy-using sectors: industry, banks, public, residential and commercial.

On the occasion of the report launch, Jas Singh, World Bank Senior Energy Specialist and main author of the report, stated:  “Energy efficiency is among the least expensive and cleanest ‘energy resources’ and Turkey needs to do more to exploit this critical and abundant resource. Energy efficiency can help Turkey enhance its energy security, sustain economic growth, and help protect the environment.”

Singh added that, “Over the past years, Turkey has put a strong legal and policy framework in place for energy efficiency.  As Turkey intensifies its efforts on implementation to meet its 10 percent energy savings target by 2023, more coordinated efforts are required, better leverage, greater scale, and measurable, national-level impact indicators.  There is need to shift from free-standing, one-off, pilot investments to national-level programs with strong institutions, dedicated, sustainable financing mechanisms, and an able private sector.”

The report also examines the institutional set-ups and experiences from several other countries and comes up with a list of key success factors—such has having an independent, dedicated energy efficiency agency with stable funding that leverages the private sector and is accountable to its shareholders. The report concludes with recommendations for Turkey to make adjustments on the institutional side and programming to elevate Turkey to international good practices and help the country realize its vast energy efficiency potential for the benefit of all.

[1] The Report was financed by ESMAP.  Established in 1983, the Energy Sector Management Assistance Program (ESMAP) is a global, multidonor technical assistance trust fund administered by the World Bank and cosponsored by 13 official bilateral donors. ESMAP assists its clients – low- and middle-income countries – to increase know-how and institutional capacity in order to achieve environmentally sustainable energy solutions for poverty reduction and economic growth. For more information, please visit esmapd9-dev.assyst-uc.com.