Egypt’s Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat said on Wednesday that climate finance needs in emerging markets are vast, particularly when aligned with global targets for emissions reduction and climate adaptation, calling on governments to prioritise “blended finance” models to de-risk private investment in green projects.
Mashat was speaking during a high-level session on the GAEA initiative launched by the World Economic Forum, which focuses on mobilising capital to support transformations in climate, nature and energy. The session discussed ways to mobilise and channel catalytic capital and accelerate partnerships among governments, the private sector and development institutions to advance climate action, protect nature and speed up the energy transition.
She said blended finance mechanisms – including concessional finance, technical assistance and risk-mitigation instruments – help reduce investment risks, improve project bankability and attract private capital, which often shies away from early-stage or high-risk climate investments.
Mashat highlighted Egypt’s efforts to advance climate action through the country’s national “NWFE” (Nexus of Water, Food and Energy) program, describing it as a regionally and internationally recognised platform cited in global reports as a model that integrates project design, implementation and financing. The platform coordinates efforts among government entities, development partners, international institutions and the private sector.
She said progress made in renewable energy since the program’s launch has helped promote Egypt’s significant potential in the sector and strengthened the country’s ability to meet its target of generating 42% of electricity from renewable sources. She pointed to the recent inauguration of the Obelisk project, one of the country’s largest renewable energy projects.
Launched in 2022 to accelerate implementation of Egypt’s National Climate Change Strategy 2050 and its updated nationally determined contributions (NDCs), the NWFE program aims to move from pledges to execution. It relies on blended finance by combining public, private and concessional funding, alongside technical support and multi-stakeholder partnerships.
According to Mashat, the program has boosted investor appetite for renewable energy and mobilized $4.5 billion in financing for clean energy projects led by the private sector. These funds are supporting the development of 5.2 gigawatts of solar and wind capacity, while power purchase agreements have been signed for a total of 8.25 gigawatts, out of an overall target of 10 gigawatts.
She added that Egypt has so far shut down 1.3 gigawatts of conventional thermal power plants, out of a planned total of 5 gigawatts, while strengthening electricity grid infrastructure with €367 million in concessional financing to ensure grid readiness and system stability.
Mashat also said Egypt has used debt-for-development swap mechanisms with bilateral partners, including Italy and Germany, to boost climate investments, particularly in the energy pillar of the NWFE program, alongside projects across other development sectors. She noted that the ministry is working with the European Union and the World Bank to expand private sector investment guarantees and introduce additional financing instruments.
The session was attended by Chavalit Frederick Tsao, chairman of Tsao Pao Chee Group; Ray Dalio, founder of the Dalio Family Office; and Justin Mundy, head of the Sustainable Sovereign Debt Hub. It was moderated by Sebastian Buckup, managing director of the World Economic Forum, and opened by André Hoffmann, vice chairman of Roche Holding and co-chair of the World Economic Forum.
