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Egypt’s green growth “significant” in 2020 with over $5 bn investments

Egypt’s green growth “significant” in 2020 with over $5 bn investments
Monday 28 December , 2020
By Marwa Nassar - -

Egypt has realized a significant progress in its march towards green transformation with over $ 5 billion investments injected in the score.

The Ministry of International Cooperation said – in its annual report entitled “International Partnerships for Sustainable Development” – that Egypt has been engaged in bilateral and multilateral partnerships to be able to advance towards the United Nations Sustainable Development Goal 7 on Affordable and Clean Energy.

Within context of building back greener through strengthened partnerships, the AfDB Board of Directors has approved in July 2020 the financing of Egypt’s Electricity and Green Growth Support Program (EGGSP) with $254 million.

The project aims to enhance financial sustainability, improve management and operational efficiency of the energy sector, and support the use of renewable energy.

The agreement includes a grant to finance technical support for reforming the energy sector in Egypt and helping it to become more in line with international standards to promote a sustainable, competitive and diversified electricity sector.

In the renewable energy, electricity and petroleum sector in 2020, the Ministry of International Cooperation signed major financing agreements totaling $677 million with the African Development Bank Group (AfDB), Agence Française de Développement (AFD), and the European Bank for Reconstruction and Development (EBRD).

Moreover, the Ministry of International Cooperation and the Ministry of Electricity and Renewable Energy, signed the Egyptian-Danish Energy Partnership Program (2019-2022) agreement with the Energy Agency of the Danish Ministry of Climate, Energy and Utilities, to unlock Egypt’s green transformation and invest in renewable energy.

“Egypt wants to accelerate the pace at which the country is transforming to ‘green energy’ whether it’s through having access to clean energy or implementing wind and solar projects.” Egyptian Electricity Minister Mohamed Shaker said.

The agreement aims to support the state in accelerating the pace of Egypt’s green transformation by developing plans to ensure access to affordable clean energy and implementing wind energy projects, as Egypt seeks to increase the share of renewable energy to more than 42 percent.

Within this context, Egypt also spearheaded the Benban Solar Park in the Upper Egypt governorate of Aswan. The project – which employs about 4,000 people – is part of Egypt’s Sustainable Energy Strategy 2035 that aims to produce electricity from renewable sources. It is also the fourth largest solar power plant in the world.

In another success story meeting the SDG 12: Responsible Consumption & Production, Egypt’s 250 MW wind farm in the Gulf of Suez supports renewable energy increased capacity and is expected to further improve the environmental characteristics of the country’s power sector.

“Egypt is fostering renewables and being a role model for countries to follow with the success of Benban Solar Park and Kom Ombo Solar Power. We continue working with our multilateral and bilateral partners to contribute to the achievement of Egypt’s sustainable future.” International Cooperation Minister Rania Al Mashat said.

“The Government of Egypt’s strong dedication to renewable energy, combined with excellent wind and solar resources, offers Egypt a great opportunity to become a regional, green pioneer,” Danish Minister of Climate, Energy and Utilities Dan Jørgensen said.

Through pushing the frontiers of collaboration, the Ministry of International Cooperation signed an agreement with the AFD for financing allocated to the Energy Sector Budgetary Support Program.

To support Egypt’s Green Recovery Plan, the Ministry of International Cooperation with the World Bank approved a $200 million project in October 2020 to support initiatives to reduce air and climate pollution, as well as increase resilience to air pollution in Greater Cairo.

The project prioritizes integrated climate solutions through reducing vehicle emissions, improving the management of solid waste, and strengthening the air and climate decision-making system – promoting new methods and technologies that accelerate Egypt’s transition to a green economy and aligns with the 2030 national agenda.

The project will contribute to attaining Egypt’s key environmental goal of halving Particulate Matter pollution and to developing and implementing a strong, economically feasible climate impact mitigation program that would meet Egypt’s 2030 targets for reduced emissions.

“We are prioritizing integrated climate solutions that strengthen resilience, protect the health of Egyptians and promote an economically productive society.” Mashat said.

“Through this partnership we aim to give our children and youth a healthier future, where they can prosper, grow, and fulfill their potential,” Egyptian Minister of Environmental Affairs Dr. Yasmine Fouad.

Green Bonds:

This year as well, Egypt sold $750 million in green bonds in September in what was the region’s first sovereign offering of climate-friendly securities.

The issuance was almost five times oversubscribed, attracting some $3.7 billion worth of orders for the bonds, pointing to growing appetites for climate friendly securities worldwide.

The government had been expected to sell $500 million of the bonds. The sale consists of five-year notes, which were initially taken to market at a yield of 5.75% but were sold 50 bps lower at 5.25%.

Egypt’s first sovereign green bonds will finance the development of Egypt’s $1.9 billion portfolio of green projects, including clean transportation, renewable energy and sustainable water management.

Therefore, 2020 has been a remarkable year for the progress which Egypt realized towards green economy despite of the pandemic.

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