Localise development and climate action nationwide, map government investment, raise public awareness of sustainable development towards the transition to a green economy — such are the aims of the National Initiative for Smart Green Projects.
In fact, half of new projects will be green by 2024 and 100 per cent by 2030.
The ministries of planning, communications, environment and international co-operation jointly launched the initiatives last year.
For example, the New and Renewable Energy Authority at the Ministry of Electricity and Renewable Energy has taken on schemes to reduce carbon emissions.
Economist Walid Gaballah said in recent press remarks, “The Egyptian strategy for the transition to a green economy is part of Egypt’s Vision 2030, going green means better funding from international institutions and also improves our country’s rating in the relevant indicators.”
“Green investment projects underway nationwide will shape the future for generations to come,” the economist added.
“Indeed, green projects are realities — the Benban solar power plant, electric trains and natural gas-fuelled road vehicles,” Gaballah said.
“Increasing the percentage of green public investments reflects the country’s determination to achieve the requirements of its transition to green economy and motivate the private sector to go in the same direction, with an eye on becoming a pioneer in green economy in the region,” the expert said.
SCZone green ventures
The Suez Canal Economic Zone (SCZone) has signed several memoranda of understanding (MoUs) with companies from UK, India, Saudi Arabia and United Arab Emirates to set up green hydrogen and ammonia production in Ain Sokhna, Suez Governorate. A separate agreement was signed with an Indian firm to set up a green hydrogen factory in SCZone. The $8-billion project will produce 20,000 tons of green hydrogen in a pilot phase as of 2026, with plans to increase output tenfold.
These green projects will lead to the decarbonisation of the energy sector.
Green investment can also be a means for adaptation to climate change.
In 2020, Egypt became the first country in the Middle East and North Africa to issue a sovereign green bond in a $750 million deal to finance environment-friendly projects in energy and transport. The World Bank said this funding solution can improve access to drinking water and more crops irrigated by desalinated water and recycled waste water.
Funding
In 2020, the government established the Green Financing Framework, which entails regulations for green and social projects aligned with its commitment to fulfilling the United Nations Sustainable Development Goals (SDGs).
The Ministry of Finance then announced the Sovereign Sustainable Financing Framework to that end. These frameworks are being translated into action, paving the way to more green investments in other areas of the economy.
To diversify funding sources, the government has also moved with the plans to allow Islamic bond sales following issuing Sharia-compliant sukuk bonds alongside Eurobonds and green bonds. The government issued its first ever sovereign sukuk in February 2023 — a three-year $1.5-billion Sharia-compliant debt issuance.
International organisations and the private sector play a crucial role in boosting green sustainable investment. The European Bank for Reconstruction and Development has identified projects in renewable energy, environment-friendly transport and green cities.
Green, inclusive development
In March 2023, the World Bank Group Board of Executive Directors approved a new country partnership framework (CPF) for Egypt to support a green, resilient, and inclusive development (GRID) approach, aiming to pursue poverty reduction and shared prosperity with a long-term sustainability axes, according to the World Economic Forum.
PPP role
The Public/Private Partnerships (PPP) are playing their part in carrying out green infrastructure projects in various fields.
Concerted efforts at greening national spending have also played a prominent role. A major goal of Egypt’s Environment Sustainability Criteria introduced in 2019 ensures that 15 per cent of government investment goes to green projects, rising to 50 per cent by 2025.
Benban solar park
The country plans to become an international hub for producing and exporting green hydrogen and to generate 42 per cent of its electric power using renewable sources by 2035.
To this end, Egypt had previously established the $2 billion Benban solar park, which is one of the largest worldwide, with a production capacity of 1,465 MW, according to a recent cabinet report.
The massive project was completed late in 2019, with the aim of powering hundreds of thousands of homes and businesses.
Egypt also plans to establish a pumped storage hydropower project with total investments of $2.7 billion and a capacity of 2,400 MW.
Egypt’s clean energy projects also include the LE12 billion Gabal el-Zeit wind farm of the Red Sea governorate with an overall capacity of 580 MW. Also, anLE4.3 billion solar plant is being established in Suez Governorate with a capacity of 250 MW, the report says.
Clean transport
The country has also embarked on a number of clean transportation projects, including the 2.7 billion euro monorail lines in the New Administrative Capital, east of Cair and 6 October City.
The new capital line will carry around 600,000 passengers per day while the Giza line, 650,000 per day, the report says.
Egypt also embarked on its first high-speed electric railway project at a cost of LE519.5 billion, covering a distance of around 2,000 kilometres.
This comes in addition to the country’s first light rail transit (LRT) which was inaugurated by President Abdel-Fattah El-Sisi last year to transfer a million passengers per day.
