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  • Saturday, 12 November 2022

Continuing Efforts to Mobilize Development Financing Mechanisms Facilitating the National Green Projects Platform "NWFE" Program to Stimulate the Private Sector: The International Community Supports Egypt's Efforts to Transform Renewable Energy and Stimulate Climate Action Through the National Platform for Green Projects

Egypt, Germany and the United States Make a Joint Declaration during the COP27 Climate Conference to Support the Energy Pillar with the "NWFE" Program

Germany announces 250 million euros for Egypt to stimulate renewable energy transformation plans, including 50 million euros grant and 100 million euros debt swap

Dr. Rania al-Mashat Minister of International Cooperation: NWFE accelerates the pace of transition to implementation, We adopt a partnership-based approach among relevant parties to accelerate the green transition

German Minister: Wind energy resources will drive Egypt's ability to expand renewable energy

German Minister: Egypt sends strong signals about its climate ambition and welcomes its policies for transition to clean energy

Egypt has unique potential and rich resources to expand the renewable energy sector

Concessional Development Financing for the Energy Pillar of the "NWFE" Program Releases Potential for $10 Billion Investment

As a continuation of efforts to mobilize development financing mechanisms facilitated by the National Green Projects Platform "NWFE", to drive Egypt's green transformation and transition to renewable energy, the Arab Republic of Egypt, the United States of America and the Federal Republic of Germany issued a joint statement and political declaration to support the energy pillar of the "NWFE" program.

Details of the joint statement, can be found here.

In his address to the Sharm el-Sheikh climate conference, President Joe Biden announced that Germany, the United States and the European Union would provide a $500 million funding package to Egypt, facilitating Egypt's transition to clean energy.

At the same time, in a statement, the German Federal Ministry for Economic Cooperation and Development announced the provision of Euro 250 million to the Arab Republic of Egypt in order to support the acceleration of the transition of renewable energy to 42% of the total energy generated by 2030, instead of 2035.

The German ministry stated in a statement that the Egypt aims to decommissioning at least 12 natural gas power plants with a total capacity of 5 GW. This is a key component of the restructuring in the energy sector, reflecting ambitious climate action policies and nationally defined contributions.

Dr. Rania Al-Mashat, Minister of International Cooperation, commented: "NWFE means fulfilling pledges and the name of the National Platform for Green Projects is in line with the objectives of the Egyptian presidency of the COP27 Climate Conference." Together to implement ", we adopt a partnership approach between relevant parties to stimulate innovative financing mechanisms and accelerate the implementation of pledges and the transformation of the green economy. This declaration marks a milestone and a turning point in strategic partnerships between Egypt and bilateral development partners, particularly the United States of America and Germany towards efforts to combat climate change."

For its part, the Minister for Development of Germany, Ms. Sevina Schulz, and the United States Presidential Envoy for Climate, Mr. John Kerry, welcomed the declaration between Egypt, Germany and the United States of America.

The German minister continued: "Egypt, as the host country of the COP27 climate conference, sends strong signals for greater climate ambition and mitigation efforts at the current session of the conference, welcoming that Egypt's climate action policies will also address the social impacts of the transition to a green economy on citizens, so that climate policies are fair.

The statement issued by the German Ministry confirmed that Egypt has unique possibilities to develop the renewable energy sector through water resources, wind and sunshine.

Germany's Minister of State for Development, Jochen Flasbarth, said wind energy resources would be a key driver to ensure the country's ability to expand renewable energy to increase the contribution of renewable energy to more energy, and Egypt was working to formulate an ambitious long-term energy strategy until 2050 to reduce emissions and reach net zero.

Germany is set to provide Euro250 million to stimulate Egypt's energy transformation plans non-refundable grants of Euro50 million and Euro100 million in concessional development funding and 100 million euros in debt swaps, with a portion of the debt swap proceeds to be used to help improve the living conditions of workers at the old power plants that will be closed.

In a large mobilization of the international community, the Egyptian pavilion on November 8 at the COP27 climate conference, Dr. Mostafa Madbouly, Prime Minister, witnessed the signing of partnership agreements and letters of intent between the Egyptian Government and the European Bank for Reconstruction and Development (EBRD), coordinator of the energy nexus program "NWFE", the African Development Bank, the coordinator of the "Water" nexus, and the International Fund for Agricultural Development "IFAD", Food nexus Coordinator, and several development partners contributing mixed funds stimulating the private sector.

Statement of the German Federal Ministry can be found here.

In a statement about U.S. President Joe Biden's visit to the city of Peace, Sharm el-Sheikh, the U.S. Embassy announced to participate in the COP27 climate conference and that the United States and Germany support Egypt with financial resources to support climate ambition. These resources are unleashing investments in the renewable energy sector worth $10 billion to increase the sector's capacity by deploying 10 gigawatts of wind and solar energy, versus stopping a number of conventional powered stations, to reduce emissions and promote the transformation of the green economy.

The National Green Projects Platform "NWFE" program, consists of three-pillars which includes food nexus with 5 projects and investments of $3.35 billion, water with 3 projects and investments of $1.35 billion, and energy nexus with one large renewable energy project with investments of $10 billion, and total investments of the program of about $14.7 billion under the umbrella of the National Climate Change Strategy.

The statement of the U.S. Embassy, mentioned the "Energy" pillar within the National Green Projects Platform. "NWFE", launched by the Ministry of International Cooperation, in cooperation with development partners and national actors and the European Bank for Reconstruction and Development (EBRD) as Egypt  lead partner on the NWFE energy pillar , stating that Egypt has announced an ambitious plan for the National Climate Change Strategy 2050, Its nationally defined contribution is NDCs, and has also embarked on the development of green hydrogen and announced its intention to expand environmentally friendly vehicles and sustainable transport, and other solutions that enhance the state's efforts to transition to a green economy and move forward with climate and development efforts.

Egypt's plans and efforts at this time will reduce energy sector emissions by about a fifth and reduce methane pollution, and will enhance energy security by providing about 2 billion cubic meters of natural gas used to power traditional power plants.

Statement of the White House can be found here.