Egypt’s EBRD green economy programme paves way for $175.5m in next phase: minister

Egypt is set to boost its green economy efforts with the launch of the second phase of a financing programme backed by the European Bank for Reconstruction and Development (EBRD). The new phase targets $175.5 million to support private sector projects focused on sustainability.

The announcement was made by Egypt’s Minister of Planning and Economic Development, Rania Al-Mashat on Saturday during the closing event of the first phase of the Green Economy Financing Facility (GEFF I), which saw $154 million allocated to 130 private-sector projects.

The programme aims to foster innovation and sustainable practices in Egypt’s private sector, with a particular focus on supporting small and medium-sized enterprises (SMEs) and micro-businesses. Minister Al-Mashat emphasised that the programme’s success in its first phase has laid a strong foundation for the next stage, which will expand funding to projects aimed at mitigating climate change, enhancing resource efficiency, and adopting circular economy practices.

“Green economy financing represents our commitment to building a resilient and inclusive economy. The first phase of GEFF has proven how crucial sustainable investment is in helping Egypt achieve its climate goals,” said Minister Al-Mashat. “The second phase will further strengthen our efforts by addressing critical climate challenges and supporting Egypt’s ambition to reduce carbon emissions.”

The next phase of the GEFF initiative will see $175.5 million allocated to climate mitigation and adaptation projects, including sustainable land management and circular economy initiatives. The funding will be channelled through Egypt’s commercial banks, ensuring the active involvement of the private sector in advancing Egypt’s green agenda.

Minister Al-Mashat highlighted that the initiative aligns with Egypt’s broader climate finance strategy, which aims to position the country as a regional leader in innovative financing solutions. With global climate financing needs reaching an estimated $7.4 trillion annually by 2030, Egypt is focusing on utilising concessional financing, innovative instruments, and debt-for-climate swaps to meet its sustainable development targets.

In addition to financial support, the green economy programme offers technical assistance and incentives to reduce operational costs for businesses adopting green technologies, improving their competitiveness, and contributing to Egypt’s broader sustainability goals. The first phase of the programme has successfully supported projects that have lowered operational expenses and helped build a solid foundation for Egypt’s green, resilient economy.

Mark Bowman, EBRD vice president, stated that through the GEFF programme, Egypt is not only meeting its climate targets but also fostering long-term economic growth and job opportunities. He added that by increasing private sector involvement, the program is having a profound impact on Egypt’s green transition.

As Egypt moves forward with its ambitious green economy agenda, the EBRD’s partnership remains integral in mobilising both local and international investments to support sustainable development across the country.

The closing event also saw recognition of the banks that benefited from the green financing initiative, highlighting the programme’s role in boosting funding for green projects and promoting environmentally sustainable practices among Egypt’s business community.

Attribution: Amwal Al Ghad English

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