An Assessment of the Green Investment Potential in Türkiye's OIZs

1. An Assessment of the Green Investment Potential in the Republic of Türkiye’s Organized Industrial Zones August 2022

2. An Assessment of the Green Investment Potential in Türkiye’s Organized Industrial Zones August 2022 Table of Contents Table of Contents ...................................................................................................................... 2 List of Tables, Figures and Boxes ............................................................................................ 3 Abbreviations and Acronyms .................................................................................................. 4 Acknowledgements ................................................................................................................... 5 Executive Summary .................................................................................................................. 6 Introduction ............................................................................................................................. 12 Part 1: Overview of the OIZ Regime .................................................................................... 13 1.1. Main Defining Features of the OIZ Regime ............................................................. 13 Private Nature of OIZs: Self-governance, OIZ-companies and profits ............................ 13 The Legal and Institutional Underpinnings of Basis of OIZs’ Privateness ...................... 14 Governance and Institutional Structure of OIZs .............................................................. 15 1.2. OIZ Categories .......................................................................................................... 18 Scale and Scope of the OIZ Landscape ............................................................................ 18 Other Types of Industrial Zones Run by Private Companies ........................................... 19 1.3. Financial Capacity .................................................................................................... 21 OIZs as Industrial Municipalities ..................................................................................... 21 Main Revenue Streams ..................................................................................................... 21 Financial Capacity ............................................................................................................ 22 Part 2: Green Investment Potential in OIZs......................................................................... 24 2.1. A Brief Screening of Türkiye’s OIZs (Short-Listing) ............................................... 24 2.2. Main Trends Around Decarbonization in Leading Turkish OIZs ............................. 26 Water Management, Wastewater Treatment .................................................................... 27 Renewable Energy............................................................................................................ 28 Logistics & Mobility ........................................................................................................ 30 Solid Waste Management ................................................................................................. 30 Project Financing.............................................................................................................. 31 Role of Anchor Investors in Green Investments .............................................................. 31 2.3. Green Agendas and Investment Potential in OIZs .................................................... 34 Overview of Proposed Short-listed (First-Tier) OIZs’ Green Agendas ........................... 34 Second-Tier OIZs’ Green Agendas .................................................................................. 37 Summary of investment plans .......................................................................................... 44 Part 3: Conclusions, Key Takeaways and Policy Recommendations ................................. 46 Annex 1: List of Interviews .................................................................................................... 53 2