Economy
COP31 offers key opportunity to address agri-food systems: FAO
This year’s COP31 climate summit, to be hosted and chaired by Türkiye, offers an important opportunity to address the relationship between climate change and agri-food systems, a regional representative to the U.N.’s food agency said in an interview published Wednesday.
Speaking on the sidelines of the 5th Istanbul International Water Forum, which addressed regional and global water challenges and drew a number of prominent international and regional figures to Istanbul, Viorel Gutu, U.N. Food and Agriculture Organization (FAO) assistant director-general and regional representative for Europe and Central Asia, evaluated the issues of such as water use and efficiency.
Gutu told Anadolu Agency (AA) that water use in agriculture, food security, and the upcoming U.N. climate summit COP31 were among the key issues discussed at the Istanbul forum, adding that the event provides an important platform for advancing water resilience and efficiency, which are high on the global agenda.
He said he used the event to underline the importance of the link between water and agricultural and food production, noting that “70% of water use is related to food production, related to agriculture, and it is important to bring efficiency into the agenda of food producers.”
Gutu highlighted key statistics on the issue, saying water-use efficiency in agriculture stands at just $0.7 per cubic meters, compared with more than $50 in industry and over $114 in the services sector.
He said the figures point to a significant efficiency gap, adding that they also indicate major opportunities to improve water-use efficiency in the agriculture and food sectors.
An estimated 673 million people were living in hunger in 2024, while around 2.5 billion lack access to a healthy diet and face food insecurity worldwide, Gutu said.
He said the situation is becoming increasingly critical due to growing population pressures, noting that the global population is projected to reach 10 billion by 2050.
Gutu said rising population would also increase demand for food, adding, “We have to be ready to produce more using the same resources. In the last 60 years, agricultural production has tripled, but the area used for agriculture has increased only by 8%. So, it was mostly focused on productivity.”
Discussions around food security need to increase, Gutu also said.
“All of this is part of a broader system, and that is why events like this are so important – to discuss these issues, raise awareness, develop and share solutions, and advise governments on these solutions,” he added.
Moreover, Gutu said the U.N. target of limiting global warming to 1.5°C (2.7°F) is crucial to ensuring conditions capable of meeting future needs.
He added, “If we invest properly in preserving our natural resources, in efficient use, and bringing modern technologies to the ground, then it is possible. Still, when we speak about this 1.5-degree limitation, we have to be aware that we are already experiencing climate shocks, severe droughts, and different floods, events which were not characteristic to certain parts of the world. So, now, we have to invest in adaptation, also in resilience, and obviously allow and help people on the ground in the most vulnerable areas to cope with this climate stress and shocks.”
Gutu said the COP summits held under the U.N. Framework Convention on Climate Change (UNFCCC) are important for addressing all dimensions of climate change.
“From the FAO perspective, it is important to note that only a few COPs ago, there was finally an attempt to bring agri-food systems and agriculture onto the COP agenda. Let’s not forget that around 30% of greenhouse gas emissions come from agriculture. But agriculture is not only part of the problem, but it can also be part of the solution,” he said.
COP31, to be hosted and chaired by Türkiye this year, would provide an important opportunity to address the many dimensions of the relationship between climate change and agriculture, he noted.
“First, let me congratulate Türkiye on hosting this huge and very important global event. We also see COPs, including COP31, as an opportunity not only to raise attention but also to help mobilize climate financing for agri-food systems,” he also said.
Assessing the role of climate finance in agriculture, Gutu said agri-food systems currently face an annual financing gap.
“We are currently facing an annual financing gap of $1.3 trillion for agri-food systems. If this financing gap could be addressed through commitments made during and beyond the COP process, it would significantly advance progress toward our goals,” he said.
“I believe this represents another major opportunity, and we as the Food and Agriculture Organization will continue engaging with governments, participating in negotiations and drawing attention to agri-food systems,” he added.
U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng held talks on Wednesday at the Incheon International Airport in South Korea ahead of the summit between leaders of the world’s two largest economies, a U.S. official told Reuters.
The two met in South Korea to lay the groundwork ahead of the summit between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing.
The discussions were expected to cover a range of issues to prepare for talks that are set to run from Thursday to Friday.
The talks between Bessent and He were likely to be exploratory with limited immediate outcomes, said Kim Tae-hwang, a professor of international trade at Myongji University in Seoul.
“Both sides are essentially in a holding pattern ahead of the summit, sounding each other out, rather than seeking breakthroughs,” he said.
China’s lead trade negotiator, Vice Commerce Minister Li Chenggang, and Vice Finance Minister Liao Min were among the officials accompanying He.
At the Beijing summit, the leaders are expected to agree to set up forums to ease mutual trade and investment, while China is expected to announce purchases related to Boeing airplanes, American agriculture and energy, U.S. officials have said.
Beijing also wants the United States to relax curbs on exports of advanced semiconductors, and has raised concerns about a bill to keep critical chip-making equipment from China.
They are considering extending a truce on China’s export curbs on rare earths at the summit, but Chinese customs data shows Beijing is still throttling shipments of the materials vital for defence and manufacturing.
The summit talks may also encompass the Iran war, as China, which maintains ties with Iran, is a major buyer of its oil.
Trump said on Tuesday, however, he did not think he would need China’s help to end the conflict, even as hopes for a lasting peace deal dwindled and Tehran tightened its grip over the Strait of Hormuz.
Neither side has strong incentives to make early concessions, however, said Kim, the academic, adding that the United States is unlikely to ease curbs on key technologies such as semiconductors.
China, in turn, buoyed by relatively resilient growth and trade performance, is under less pressure to offer significant compromises, he said.
Bureaucratic preparations for the launch of direct trade between Türkiye and Armenia as part of the ongoing normalization process between the two countries have been completed, the Foreign Ministry said on Wednesday.
Foreign Ministry spokesperson Öncü Keçeli said the preparations were finalized as of May 11 under the confidence-building measures implemented since 2022.
“The bureaucratic preparations regarding the initiation of direct trade between our country and Armenia have been completed as of May 11, 2026,” Keçeli said in a statement released by the ministry.
He noted that technical and bureaucratic efforts aimed at opening the common border between the two countries are still continuing.
The new arrangement allows the final destination or point of departure for goods traveling from Türkiye to Armenia via a third country, or vice versa, using the same route, to be listed as “Armenia/Türkiye,” according to the statement.
Keçeli said Türkiye would continue contributing to the development of economic relations and broader regional cooperation for the benefit of all countries and peoples in the South Caucasus.
“In light of the historic opportunity seized to strengthen lasting peace and prosperity in the South Caucasus, Türkiye will continue to contribute to advancing economic relations and cooperation in the region,” he added.
Türkiye’s e-commerce market expanded sharply in 2025, with the transaction volume rising more than 52% year-over-year, Trade Minister Ömer Bolat said Tuesday.
“The e-commerce volume in our country increased by 52.2% last year to reach TL 4.57 trillion. This is a very significant figure,” Bolat said. “It corresponds to approximately $115.5 billion, representing nearly 29% growth in dollar terms.”
Bolat was speaking in Ankara at the unveiling of the E-Commerce Outlook Report, which showed total e-commerce transaction volume reached 5.94 billion last year.
Retail e-commerce alone grew 51.8% from a year earlier to TL 2.46 trillion, while the number of retail transactions totaled 1.94 billion.
The sector has expanded rapidly over the last six years. Türkiye’s e-commerce volume stood at $23.94 billion in 2019 and rose steadily to $89.58 billion in 2024, marking a 382% increase in dollar terms over the 2019-2025 period.
Bolat said e-commerce accounted for 6.9% of Türkiye’s gross domestic product (GDP) in 2025, noting that it represented approximately 19.5% of total trade volume.
The minister also highlighted continued growth in e-exports, saying government support measures for both e-commerce and cross-border digital trade remained in place.
More than 11,500 individuals generated over $10,000 each in e-export revenues last year, while Türkiye earned $5.1 billion in foreign currency revenues from e-exports, he noted.
The number of businesses engaged in e-commerce also increased, rising to 634,611 in 2025 from 600,800 a year earlier.
According to the report, 75% of these businesses were sole proprietorships, 21% were limited liability companies and 4% were joint-stock companies.
Male entrepreneurs accounted for 72% of e-commerce business owners, while women represented 28%. The largest share of both male and female business owners fell within the 30-34 age group.
Sectoral data showed food delivery remained the largest segment by number of businesses, accounting for 20.3% of the e-commerce ecosystem, followed by apparel, footwear and accessories at 13.8%, electronics at 11.9%, and home, garden, furniture and decoration at 10.5%.
In terms of transaction value, apparel, footwear and accessories captured the largest share of e-commerce spending in 2025, totaling TL 428.7 billion.
That was followed by electronics with TL 304.34 billion, airlines with TL 285.44 billion and food services with TL 270.16 billion.
Türkiye plans to accelerate investments and make 2026 the “year of wind,” its energy chief said Tuesday, as the country plans new renewable energy auctions and advances preparations for its first offshore projects.
“2026 will practically be the year of wind,” Energy and Natural Resources Minister Alparslan Bayraktar told the Turkish Wind Energy Congress in Ankara.
A total of 1,500 megawatts (MW) will be dedicated to wind as part of Renewable Energy Resource Zone (YEKA) tenders, Bayraktar added, referring to a mechanism aimed at encouraging clean power investments.
Offshore wind is among Türkiye’s most strategic renewable energy priorities with a “significant” potential, according to the minister.
Renewables are a key part of the country’s broader push to diversify energy supply, reduce its heavy import dependence and strengthen long-term energy security.
First offshore tender
Türkiye aims to install 5 gigawatts (GW) of offshore wind power capacity by 2035, and Bayraktar said four areas have been designated as installation sites.
The first offshore wind YEKA tender will be held after the completion of permitting processes, he added.
Bayraktar stated that the Saros Gulf, areas near the islands of Gökçeada, Bozcaada and the region off the coast of Edremit had been designated as offshore wind sites.
“After the permitting processes are completed, we will hold Türkiye’s first offshore wind YEKA tender,” he said, though he did not provide a timeline.
Ibrahim Erden, head of the Turkish Wind Energy Association (TÜREB), also said they expect the first tender to be announced and held either later this year or at the beginning of next year.
Türkiye has, in recent years, intensified efforts to identify offshore wind energy zones, particularly in the northwestern part of the country.
Compared with onshore plants, offshore wind farms involve higher investment and maintenance costs, but they can generate electricity with fewer interruptions.
The YEKA scheme was introduced in 2016 to facilitate land allocation for investors, ease the deployment of large projects and encourage the domestic production of renewable energy technologies.
The government later unveiled updates to the model to draw greater investor interest. Key enhancements included simplifying post-tender permitting procedures and introducing financial incentives like exemptions from transmission fees.
Bayraktar said Türkiye has so far held YEKA auctions totaling 7,800 MW and allocated an additional 3,800 MW of capacity in 2024 and 2025 under the updated auction model.
“We will continue to organize at least 2,000 MW of YEKA competitions every year,” he said.
Electricity ‘backbone’
Globally, Bayraktar said the energy landscape is being reshaped by geopolitical tensions, climate change, supply chain disruptions and rising electricity demand. He stressed that uncertainties have increased with the Strait of Hormuz closure and that crises are becoming increasingly persistent.
Still, Bayraktar said Türkiye remains among the countries that have avoided disruptions to energy supply thanks to diversified import sources and infrastructure investments. He said the country is now building what he described as a “new energy architecture,” centered on electrification and renewable energy.
“The main axis, the backbone of the new process, will be electricity. In line with our new energy architecture, we will evaluate opportunities for cooperation and sign various agreements,” said Bayraktar.
“What we clearly see is that the world is becoming increasingly electrified.”
He pointed to the rapid adoption of electric vehicles as one of the drivers of future electricity demand, noting that the number of EVs in Türkiye has exceeded 400,000 and is projected to reach between 6 million and 8 million by 2035.
Daily electricity consumption in Türkiye broke records last summer, mainly driven by growing air conditioner usage. Bayraktar says they expect hotter summers, more intensive energy consumption and much higher electricity demand.
“Electricity is at the center of Türkiye’s energy transformation, and renewable energy is at the center of electricity,” he noted.
Hotter weather to lift power consumption
Türkiye’s total installed capacity now exceeds 125,000 MW, and approximately 63% of this consists of renewable sources. That compares to about 33% back in 2005.
Bayraktar also said Türkiye experienced record daily electricity demand last summer due to air-conditioning use, warning that hotter summers and growing electrification will continue to lift power consumption.
“We expect warmer summers, more intensive energy consumption and much higher electricity demand,” he said.
Türkiye’s installed electricity generation capacity has surpassed 125,000 megawatts, of which roughly 63% now comes from renewable sources, according to Bayraktar. That compares with just 33% in 2005.
Wind power capacity has risen from only 20 MW in 2005 to more than 15,000 MW today. Wind accounted for 10.9% of Türkiye’s 393 billion kilowatt-hours of electricity generation in 2025.
Bayraktar said annual wind generation reached a record 34.5 billion kilowatt-hours.
Solar capacity has also expanded sharply, rising from 40 MW in 2014 to more than 26,000 MW today.
Combined, wind and solar now account for roughly one-third of Türkiye’s installed capacity.
“Türkiye is now among the top five countries in Europe and top 11 globally in renewable installed capacity,” Bayraktar said.
$30B new investment
He also highlighted growing domestic manufacturing capabilities in the wind sector, saying localization rates have reached around 60% for wind turbines and more than 70% in towers, generators and blades.
Türkiye’s renewable ecosystem has expanded from 27 producers in 2014 to 500 domestic manufacturers today, while the sector supports around 50,000 green jobs, according to Bayraktar.
Electricity demand is expected to rise to 510 terawatt-hours by 2035, prompting Türkiye to significantly expand both generation and transmission infrastructure.
Türkiye aims to raise combined wind and solar installed capacity to 120,000 megawatts by 2035.
To support the expansion, Türkiye plans to invest around $30 billion in grid infrastructure, including 14,700 kilometers of high-voltage direct current transmission lines with 40 GW of capacity, 15,000 kilometers of new alternating current transmission lines and 40 new converter stations.
“A strong renewable portfolio requires a strong grid infrastructure,” Bayraktar said.
He added that Türkiye is also working to increase interconnection capacity with neighboring countries as part of efforts to position itself as a regional energy trading hub.
Bayraktar also linked Türkiye’s renewable energy agenda to the U.N. COP31 climate summit, which Türkiye is set to co-host with Australia in Antalya in November.
“COP31 is of great importance in this context,” he said. “From wind and solar to nuclear energy and energy efficiency, we will deliver important messages to the world from Antalya with ambitious targets.”
Chancellor Friedrich Merz said Germany must “pull itself together” or risk falling behind in a rapidly changing world, in a speech to trade unionists on Tuesday that was met with jeers, whistles and boos.
After a year in office, Merz’s popularity has sunk and his government has become embroiled in disputes over how far and how fast to reform Europe’s largest economy to revive growth and tackle ballooning healthcare and pension costs.
The sceptical reception among delegates representing workers from across industrial, public and service sectors reflects a wider battle in German politics over the pace of change at a time when established parties are losing votes to the surging far-right Alternative for Germany (AfD).
Merz’s conservatives and their junior ally, the Social Democrats, were meeting later on Tuesday to thrash out differences, with Merz and his Vice Chancellor Lars Klingbeil batting away suggestions that the coalition could collapse.
After two years of recession, Germany returned to growth at the end of last year, but the fragile recovery risks being snuffed out by an energy shock from the war with Iran and new U.S. tariffs targeting carmakers that are already struggling against competition from China.
“The challenges are also so great because we have created problems for ourselves for far too long, problems that we now have to solve. We have simply failed to modernize our country,” Merz told the German Trade Union Confederation (DGB).
“Germany must therefore pull itself together. Germany must tackle the structural problems that we have been putting off for many years, problems that have consequently grown steadily larger. You know it, we all know it.”
Merz said high costs and bureaucracy were hurting business, putting jobs and the prosperity of future generations at risk.
But his case for reforming health and pensions, the latter a straightforward question of “demographics and mathematics,” was greeted with periodic heckling, whistles and laughter, while some in the audience held thumbs-down signs.
Merz argued that significant changes to the welfare system and labor market rules are needed to revive the country’s stagnant economy.
“These reform projects are not a threat; they are a great opportunity,” he said.
Merz had previously promised an “autumn of reforms” to cut costs in Germany’s social welfare system, but legislation has been slow to materialize.
At the end of April, the coalition struck a deal on health insurance changes, which had previously faced opposition from the labor-aligned SPD.
On Tuesday, Merz promised to continue by passing pension reforms – labelling this “undoubtedly the most difficult challenge” – by late summer.
Germany has the oldest working population in the European Union, with a quarter of the country’s workers aged between 55 and 64, according to figures published in February.
Merz warned that demographic trends will mean that a shrinking share of younger workers will have to support growing numbers of pensioners in the future.
He has called for increased private investment in funding retirement.
The sputtering performance of Europe’s largest economy – which is widely forecast to grow only about 0.5% this year – is “simply too little to maintain our prosperity”, Merz said.
Without growth, “there will also be no effective welfare state, good healthcare, or adequate pensions,” he warned.
DGB chair Yasmin Fahimi, who was reelected to her post on Monday, countered that any reforms must include a “fair distribution of the burden” and rejected government proposals to loosen working time regulations.
Japan’s top potato chip maker is feeling the impact of supply shortages linked to the Iran war, swapping its signature orange-and-yellow packaging for black-and-white designs.
A household name in Japan, Calbee is known for its savory potato chips with an array of flavors from seaweed salt to soy sauce and butter.
The company said Tuesday it will “revise the packaging specifications” and use just “two colors” in packaging for 14 product lines beginning later this month or in June.
It did not say which two colors, but the statement showed photos of grey packaging.
Calbee, which has the largest share of the domestic snacks market, blamed “supply instability for certain raw materials resulting from the escalating tensions in the Middle East.”
Local media said the snack maker has seen its procurement of printing ink compromised by shortages of naphtha, an oil byproduct used in a wide range of industries.
The goods affected included several potato chip products, as well as a breakfast cereal and Kappa Ebisen, a moreish shrimp snack known for the slogan “can’t stop, can’t stop.”
“We will continue to respond swiftly and flexibly to changes in the business environment, including geopolitical risks, while striving to deliver safe, reliable, and satisfying products,” the company said.
Japanese companies have lately sought to minimize the impact of rising costs and input material shortages even as the government seeks to reassure the public and businesses over supplies.
Printing ink requires naphtha, for which Japan relies on imports from the Middle East for about 40% of its consumption.
Calbee’s Potato Chips are instantly recognizable for their multi-hued designs featuring product images on backgrounds that can be orange and yellow.
News of the 77-year-old company’s move made headlines across Japan. It followed a brief panic in March among fans of a different crisps brand that temporarily stopped producing a popular snack, citing difficulties in procuring the heavy oil needed to run its factory.
Another Japanese food company, Itoham Yonekyu Holdings, also told Agence France Presse (AFP) that going black-and-white or using different kinds of inks for some of its products were among possible options in the future, similarly blaming supply problems due to the Middle East conflict.
Roughly a fifth of the world’s oil normally passes through the Strait of Hormuz, and its de facto closure since the war began in late February has triggered a global energy crisis.
Japan’s Prime Minister Sanae Takaichi previously said Tokyo was expected to have enough naphtha-derived chemical products to last beyond the end of the year after boosting imports from outside the Middle East.
Last week, Takaichi said that the global oil supply squeeze was inflicting an “enormous impact” on the Asia-Pacific region.
Asked about Calbee’s decision, a government spokesperson said domestic naphtha refining continues with the use of stockpiled crude oil, while imports from outside the Middle East have tripled in May compared with levels before the Iran war broke out.
“We have not received any reports of immediate supply disruption for printing ink or naphtha and recognize that Japan as a whole has secured the quantities required,” Deputy Chief Cabinet Secretary Kei Sato said.
“Relevant ministries are working together and making efforts to communicate closely with impacted companies to grasp the situation,” he said, adding that a fact-finding hearing would take place on Tuesday.
Calbee said company representatives visited the Farm Ministry on Tuesday for an informal meeting, but it had no details to share.
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