Egypt aims to become a green energy hub; This will require significant investment from the private sector.
A report by the Ministry of Planning and Economic Development pointed to the role of the sovereign fund in this regard. It is working hard to mobilize private sector investments in the areas of renewable energy, green hydrogen, green ammonia and water desalination.
The report also indicated that Egypt continues to benefit from many policy tools to help attract private sector capital towards climate opportunities, particularly by expanding the list of companies eligible for tax benefits under the investment law. Green economy including green hydrogen production, waste management and recycling systems, and energy-saving projects.
The report pointed out that the Egyptian government has taken a number of innovative policies that have been put into practice in this regard through a participatory approach, which helps create an enabling environment for climate action, including the issuance of the “Environmental Sustainability Standards” guide, which aims to represent 40% of green projects. of the total public investment in the 2022/2023 plan, and it is targeted to increase that percentage to 50% during 2024-2025.
Last May, Egypt launched the National Climate Change Strategy, which aims to promote innovative financing mechanisms that prioritize adaptation measures such as green bonds, in addition to enhancing private sector participation in climate finance and job promotion..
The report said that Egypt is the first country in the Middle East and North Africa region to launch “green bonds” worth $750 million to mobilize resources for green projects, especially in the field of clean transportation, noting the readiness of the private sector in Egypt to launch “special green bonds” with a value ranging between 120-200. Million dollars.