Global South countries are not receiving the necessary financing to expand investments in clean energy.

We are working to create constructive partnerships with international organizations and development banks to advance Egypt's efforts in renewable energy transition.

The green transition redirects labor to new sectors and requires different skills in preparation for future jobs.

Minister "Al-Mashat" participates in two discussions on the financing gap for climate change adaptation and mobilizing funding for the implementation of the Paris Climate Agreement.

During COP29 held in Azerbaijan, H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, participated in several activities and panel discussions. H.E. also witnessed the launch of two international initiatives focusing on a just transition to sustainable energy and preparing the workforce for the green transition.

COP29 Presidency Initiative on Just Energy Transition

H.E. Minister Al-Mashat participated in the ministerial meeting on energy initiatives, where the COP29 Presidency Energy Initiative was launched; “The Baku Initiative for Climate Finance, Investment and Trade”. This event was part of the "Energy, Peace, Relief, and Recovery Day" at the climate conference, and featured the participation of Parviz Shahbazov, Azerbaijan’s Minister of Energy, Fatih Birol, Executive Director of the International Energy Agency (IEA), Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), Tatiana Molcean, UN Under-Secretary-General and Executive Secretary of the UN Economic Commission for Europe (UNECE), Armida Salsia, UN Under-Secretary-General for the UN Economic and Social Commission for Asia and the Pacific (ESCAP), and Ciyong-Zou, Deputy Director-General of UNIDO.

The session was organized by the Presidency of Azerbaijan for COP29, in cooperation with UNIDO, the UN Economic and Social Commission for Asia and the Pacific, the UN Economic Commission for Europe, IRENA, and the IEA.

In her speech, H.E. Dr. Al-Mashat emphasized the importance of joint efforts to promote sustainable energy solutions and enhance climate adaptation capacity, stressing that innovations, inclusiveness, and urgent action are needed to meet the goals of the Paris Agreement and COP28’s energy commitments.

H.E. Minister Al-Mashat highlighted that while the world is on the right track to increase energy investments, some regions are at risk of falling behind due to a lack of investment and international support. She pointed out that the Global South, which accounts for 65% of the world’s population, receives less than 15% of global clean energy investments. This gap means these regions will struggle to attract the necessary funding for an efficient transition.

H.E. Dr. Al-Mashat also noted that challenges are particularly urgent in Sub-Saharan Africa, where annual investment in renewable energy and expanding networks was around $20 billion in 2023—about one-fifth of the required $100 billion per year needed between 2024 and 2030. Clean energy investments are primarily concentrated in advanced economies and China, creating an investment gap that hinders growth in developing countries.

H.E. Minister Al-Mashat stated that the Global South is already facing an increasing investment shortfall in sustainable energy, making it difficult for developing countries to adopt clean energy technologies. H.E. called for an increase in annual investments in clean energy in developing countries and emerging markets to $1 trillion—seven times the current investments—in order to achieve low-emission and climate-resilient development by 2050.

H.E. Dr. Al-Mashat stressed that Egypt has an exceptional opportunity to contribute to the global energy transition, noting Egypt's ambitious renewable energy journey, with specific targets to reach 42% of its electricity generation from renewable sources by 2030. H.E. also highlighted recent investments that reinforce Egypt's commitment to this path. Moreover, Egypt’s efforts contribute to regional cooperation, particularly in Africa and the Arab world, aiming to strengthen cross-border cooperation and maximize the social and economic benefits of green energy for communities and industries alike.

H.E. Minister Al-Mashat emphasized that Egypt’s efforts in this field will not succeed without the effective participation of all stakeholders, fostering partnerships between the public and private sectors, and encouraging multilateral cooperation. These partnerships have been instrumental in attracting significant private-sector investments in green hydrogen and renewable energy.

Green Skills Initiative

H.E. Minister Al-Mashat participated in a discussion organized by the German Agency for International Cooperation (GIZ), in collaboration with the NDC Partnership and the World Resources Institute (WRI). The session launched the world’s first global initiative focused on preparing the workforce for the green and just transition and accelerating green skills development by promoting public-private partnerships to discuss how to increase investments in jobs and skills to create a future that fosters the green transition and supports a just transition.

H.E. Dr. Al-Mashat explained that expanding investments in clean energy in emerging markets drives economic development and creates more job opportunities. The green transition, she noted, is creating millions of new jobs while redirecting the labor market to new sectors, which will require different skills from the workforce.

The Minister also highlighted that the transition to a zero-emission economy will create new industries worth $10.3 trillion in the global economy by 2050, according to international reports. Furthermore, clean energy measures are expected to create 18 million jobs worldwide by 2030, according to the International Labour Organization (ILO).

 H.E. Dr. Al-Mashat emphasized that such initiatives would provide workers with the necessary skills through education and vocational training to prepare the workforce for green jobs.

Closing the Adaptation Finance Gap

H.E. Dr. Al-Mashat participated in a session organized by the International Monetary Fund (IMF) titled "Bridging the Adaptation Financing Gap: Challenges and Potential Opportunities." The session also featured Tracy Kajumba from the International Institute for Environment and Development, Bo Li from the IMF, and Andrew Steer, CEO of the Bezos Earth Fund, the session was moderated by Anca Gurzu, Chief Europe Correspondent, Cipher News.

H.E. Dr. Al-Mashat underscored the importance of contributing to climate adaptation finance projects. H.E. explained that while funding for adaptation has increased, it still accounts for only 20-30% of the annual adaptation finance needs, which are expected to reach $215–387 billion annually in developing countries by 2030.

H.E. Minister Al-Mashat cited reports from the World Bank on climate and development, emphasizing that reducing climate impacts and building resilience requires more development projects, strengthening more resilient development, and expanding adaptation projects. H.E. stressed the need to expand climate adaptation finance tools, including disaster risk tools to provide quick liquidity and reduce debt burdens following climate-related disasters. H.E. also called for expanding incentive-based tools to leverage private capital and results-based mechanisms to ensure resources are directed toward projects with tangible outcomes.

Mobilizing Climate Finance

H.E. Minister Al-Mashat also took part in a panel discussion organized by the European Bank for Reconstruction and Development (EBRD), the Organization for Economic Co-operation and Development (OECD), and Azerbaijan's Ministry of Ecology and Natural Resources. The discussion focused on mobilizing climate finance for the implementation of the Paris Agreement by fostering cooperation between governments, multilateral development banks, and the private sector.

H.E. Dr. Al-Mashat reviewed Egypt’s efforts over the past years, especially since hosting COP27, to enhance climate action and build constructive partnerships between development partners, international organizations, the private sector, government, and development banks. H.E. highlighted Egypt's efforts to increase investments in climate action, including the launch of national platforms to attract private climate investments, and the introduction of the Sharm El-Sheikh Guidebook for Just Financing, which is Egypt’s contribution to the global efforts to increase developing countries’ access to climate finance.

H.E. Minister Al-Mashat added that Egypt’s low-carbon hydrogen strategy, supported by international partnerships like the EBRD, embodies this future approach through building a low-carbon hydrogen economy in Egypt and the region. By 2050, Egypt’s renewable energy production is expected to meet 10% of global hydrogen demand, creating more than 100,000 jobs, many of which will require high skills, and contributing significantly to the global transition to clean energy. H.E. emphasized that this initiative would help reduce global carbon emissions by 46 million tons annually by 2040, reinforcing Egypt’s commitment to a sustainable future.