The Green Climate Fund (GCF) is launching three new regional programs in Egypt in partnership with the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD).
Minister Al-Mashat: The fruitful partnership with climate financing funds stimulates private sector participation in mitigation and adaptation projects.
Coordination has commenced with national entities, the European Bank, and the International Finance Corporation to maximize Egypt's benefits from the three programs.
Discussions are underway with the Climate Investment Fund (CIF) to collaborate within the framework of the Sustainable Industrial Investment Initiative.
Cooperation with the Global Environment Facility and the Global Infrastructure Facility is being advanced to provide grants and concessional financing to enhance the green hydrogen industry and support climate-related initiatives.
The Ministry of Planning, Economic Development, and International Cooperation has reaffirmed the ongoing joint efforts to expand collaboration with multilateral and bilateral development partners and global climate investment funds. This aims to enhance the benefits for both the public and private sectors in Egypt from climate financing, stimulate private sector investments in mitigation and adaptation to climate change, and create a supportive environment for private sector contributions across various climate action fields, leveraging their technical expertise and financial capabilities.
This initiative aligns with the ministry's role in fostering partnerships between development partners and national entities to meet development requirements and priorities, and integrating local financing of the state's investment plan with external needs.
The Ministry has announced the approval by the Board of the Green Climate Fund (GCF) of three financing programs to support climate change mitigation and adaptation efforts and enhance climate action, benefiting Egypt and a number of countries in Africa, Asia, and Eastern Europe, in coordination with the International Finance Corporation and the European Bank for Reconstruction and Development.
The fund has approved the Resilient Water Infrastructure Expansion Program, implemented in collaboration with the International Finance Corporation (IFC), which allocates $1.26 billion in financing, with the fund contributing $258 million in concessional financing, guarantees, and technical support to bolster efforts by the Egyptian private sector in water projects, wastewater treatment, and reducing water losses in networks. The program is set to benefit the Ministry of Water Resources and Irrigation, as well as the Ministry of Housing, Utilities, and Urban Communities.
Additionally, the Green Climate Fund has approved the Green Transition Program for Financial Systems in cooperation with the European Bank for Reconstruction and Development, providing approximately $1.3 billion, with the fund contributing around $200 million, benefiting 14 countries, including Egypt, to support the capacity of financial systems and institutions in the recipient countries to expand green financing through innovative financial mechanisms across various sectors.
In this context, the Ministry announced the approval of the Smart Resilient Agriculture Investment Fund program in Egypt and nine other countries, with financing packages totaling $130 million, aimed at supporting smallholder farmers, providing sustainable solutions for agricultural and rural development, and enhancing the sector's capacity to address climate change.
In H.E.’s remarks, Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, emphasized the crucial role that climate investment funds play in providing financing and technical expertise to both the public and private sectors.
H.E. Dr. Al-Mashat noted that the ministry is working to broaden the partnership scope between these funds and development partners to enable more financing that creates a supportive business environment conducive to local and foreign private sector investments, particularly in climate action.
H.E. Minister Al-Mashat indicated that the ministry will focus on coordinating with the European Bank for Reconstruction and Development and the International Finance Corporation to enhance the Egyptian market's benefits from these programs, especially given their significant importance in supporting green transition efforts and implementing the National Climate Change Strategy 2050 and Nationally Determined Contributions.
H.E. Dr. Al-Mashat affirmed that the fruitful partnership with climate finance funds stimulates private sector involvement in mitigation and adaptation projects.
H.E. Dr. Al-Mashat added that these developments complement the ministry's ongoing initiatives to support the climate investment environment, including the implementation of the Country Platform for Green Projects, "NWFE," which features nine priority projects in water, food, and energy, with various stakeholders—including governmental entities, development partners, climate investment funds, and the private sector—collaborating on financing and related studies.
Climate Investment Fund (CIF)
H.E. Minister Al-Mashat added that the ministry is working to strengthen its partnership with the Climate Investment Fund (CIF) through the Nature People and Climate Initiative, aimed at supporting projects within the "NWFE" program platform in collaboration with relevant entities and various financing institutions, including the World Bank, the International Finance Corporation, the European Bank for Reconstruction and Development, and the African Development Bank.
H.E. Dr. Al-Mashat highlighted a meeting with the fund's president during her recent visit to Washington as part of the World Bank Group's annual meetings, where discussions took place regarding new initiatives the fund intends to launch in the field of environmentally friendly industrial investment and emission reduction in industrial sectors, and ways to benefit from these initiatives, as well as managing carbon emissions, particularly in the steel, cement, and chemical industries, and accelerating the transition of high-emission industries to sustainable practices through climate investments.
Global Environment Facility (GEF)
The minister also addressed the ongoing partnership with the Global Environment Facility (GEF) on 43 projects either completed or currently being implemented in the fields of climate change, biodiversity, sustainable rural development, renewable groundwater resource development, and green hydrogen initiatives. The GEF serves as a global cooperation platform to enhance private investment in sustainable infrastructure projects in developing countries and emerging economies. Investments are made through collaborative efforts among supporting entities, including international financing institutions, governments, and private sector investors, to leverage expertise and resources and develop fundable projects that attract private sector participation. The facility operates under the umbrella of the International Bank for Reconstruction and Development.
Global Infrastructure Facility (GIF)
In a related context, the ministry is working to advance cooperation with the Global Infrastructure Facility (GIF) under the framework of collaborative efforts with the World Bank Group, currently managing a portfolio of five projects valued at $3.6 million. This includes technical support and consulting services to develop the green hydrogen program in Egypt, thereby enhancing foreign direct investment in this area and supporting the opening of new export markets. Additionally, the facility has strengthened the state's efforts to attract private sector investments in water desalination programs and support private sector involvement in such projects, while also providing consulting services to enhance public-private partnerships (PPP), particularly in dry port and logistics center projects, and encouraging investment in priority infrastructure projects to stimulate the investment environment.