Palm Hills allocates EGP 30 m for backing Egyptian athletes
Palm Hills, Egypt’s leading real estate developer, allocated EGP 30 million for supporting Egyptian athletes under ...
Egypt’s NWFE aims to close thermal stations to cut 17m tons of CO2 emissions, stimulate $ 10bn investments in renewable energy
* Egyptian-Germany debt swap agreement for climate action at €54 bn, another €50 m deal in pipeline
* NWFE aims to shut down 12 thermal power plants to save $1.2 billion annually, stimulate $ 10bn investments in renewable energy projects
* NWFE seeks to reduce approximately 17 million tons of carbon dioxide emissions annually
The energy pillar of Egypt’s NWFE program -the nexus between water, food and energy projects- aims to shut down 12 thermal power plants with a capacity of 5 GWs and replacing them with renewable energy plants, thus saving $1.2 billion annually that was originally spent on providing need fuel to operate these plants, cutting approximately 17 million tons of carbon dioxide emissions annually and stimulating $10 billion investments in renewable energy projects with a capacity of 10 GWs during the period from 2023 to 2028, in close partnership with the local and foreign private sector, according to NWFE’s first-year progress report.
During COP27, Egypt signed partnership agreement on the energy pillar with the EBRD, the European Investment Bank (EIB), the French Development Agency (AFD), the African Development Bank (AfDB), the Asian Infrastructure Investment Bank (AIIB), the United Kingdom, Denmark, and the Netherlands.
Egypt has been engaged in a €54 million debt swap agreement for climate action with the German side to support enhancing investments in the electricity transmission network, and linking two wind energy projects with a capacity of 500 megawatts – The wind farm in Neuss, and the Amunet wind farm in the Red Sea – on the national transmission network. Efforts are currently underway to sign the second tranche of a debt swap with Germany for the program worth €50 million in light of the efforts made with partners at the local and international levels to mobilize innovative financing tools to implement the pledges of the program.
The Ministry of International Cooperation explained, in its statement, that the energy pillar projects enhance the achievement of the goals of Egypt’s Climate Change Strategy to reach sustainable economic growth, implement the Nationally Determined Contributions (NDCs).
The report stated that, according to the political declaration issued in partnership between Egypt, the US and Germany, during COP27, it stipulated Egypt’s commitment to updating the NDCs and early reaching the percentage of renewable energy to 42% of total energy, to 2030 instead of 2035. These contributions have already been updated in the middle of this year.
The report stressed the importance of the debt swap mechanism as one of the innovative financing tools to enhance climate action, which international financial institutions are currently calling for as one of the support mechanisms for developing countries and emerging economies to achieve their climate ambitions.
The report explained that the joint political declaration stipulated the mobilization of concessional financing and a debt swap for the energy pillar worth $500 million, and coordination is being made with other development partners in this framework.
The report noted that in this context, cooperation is ongoing with the United States of America to provide a $35 million grant, of which $25 million will be provided through the US State Department to the European Bank for Reconstruction and Development (EBRD).
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