Egypt selected for $1bn climate fund decarbonisation programme: Al-Mashat
Egypt has been selected as one of seven countries to benefit from the Climate Investment Funds' (CIF) $1bn Industrial Decarbonisation Programme, Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat announced on Saturday.
Egypt was chosen from a global pool of 26 applicants for the programme, which is the first global development financing initiative aimed at reducing emissions in the industrial sector of developing countries. The other selected nations are Brazil, Mexico, Namibia, South Africa, Turkey and Uzbekistan.
Al-Mashat said the selection reflects international confidence in Egypt's climate action strategies.
'The selection reflects international institutions' confidence in national climate action strategies and green transformation efforts,' Al-Mashat stated, adding that a 'strong institutional framework and effective partnerships with development partners and the private sector contributed to Egypt's winning bid among 26 countries.'
The ministry submitted Egypt's proposal in collaboration with the European Bank for Reconstruction and Development (EBRD), the World Bank, the International Finance Corporation (IFC) and the African Development Bank (AfDB). The submission was based on Egypt's green economy transition goals, institutional capabilities and private sector participation.
The minister said the government is working to integrate national policies with climate objectives and that Egypt has intensified its climate efforts since hosting the COP27 summit in November 2022. During the summit, Egypt launched its 'NWFE' country platform, a programme designed to attract climate investments through government, private sector and international partnerships.
The CIF confirmed that an independent expert team assessed the applications. The programme aims to support low-emission industrial transformation, create green jobs and improve the long-term economic competitiveness of participating nations, positioning them to benefit from a global market for eco-friendly goods projected to reach $2trn by 2030.
Tariye Gbadegesine, CEO of the Climate Investment Funds, said emerging markets are playing a key role in the effort to reduce industrial carbon emissions.
'The global race to decarbonize the industrial sector has begun, and emerging markets are leading the way,' Gbadegesine said. 'Decarbonizing industry is not just about cutting emissions, it is also about securing long-term prosperity and future jobs. It is vital to produce the low-carbon industrial inputs the world urgently needs to scale renewable energy capacity and power the global economy.'
The seven selected countries are expected to work with multilateral development banks and private sector partners to develop investment plans for approval by the CIF board. The plans will allow them to access concessional financing to scale up clean technologies, such as green hydrogen.
The Industrial Decarbonisation Programme is part of the CIF's $9bn Clean Technology Fund (CTF). According to the CIF, the fund uses a private capital mobilisation mechanism that generates $12 in additional financing for every dollar it invests.
During the COP27 conference, Egypt also ranked first in the North Africa and Europe region for the CIF's Nature, People, and Climate Investment initiative, which provides $500m to support projects in developing countries. The ministry said technical discussions are underway with the CIF to use this initiative to fund projects under the 'NWFE' programme.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily News Egypt
7 hours ago
- Daily News Egypt
Egypt deepens global transport, industrial partnerships through strategic engagement at Connectivity Forum
During his visit to Türkiye to participate in the Global Transport Connectivity Forum 2025, Egypt's Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel Al-Wazir, spearheaded a comprehensive diplomatic and investment outreach aimed at reinforcing Egypt's global role in transport and industrial integration. Al-Wazir's mission included a series of high-level meetings with international industry leaders, starting with Ugur Dalbeler, Vice President of the World Steel Association and Deputy Head of Türkiye's Steel Producers Association. The two sides discussed expanding collaboration in the iron and steel sector, a strategic industrial priority for Egypt. Al-Wazir underlined Egypt's determination to localise heavy industries, enhance domestic manufacturing, and grow exports through the adoption of advanced global technologies and mutually beneficial partnerships. At a roundtable hosted by the Turkish Independent Industrialists' and Businessmen's Association (MÜSİAD), the minister addressed leading Turkish investors across sectors such as textiles, chemicals, food processing, logistics, and energy. He presented Egypt's competitive edge, including its young and cost-efficient labour force, prime geographic location linking Africa, Asia, and Europe, and preferential access to international markets through over a dozen free trade agreements. These advantages, he said, establish Egypt as a prime hub for manufacturing, exports, and global trade. Al-Wazir also took part in the forum's high-level ministerial session, 'The Future of Connectivity in a Fragmented World,' alongside Turkish Foreign Minister Hakan Fidan and representatives from the United Nations. In his remarks, he spotlighted Egypt's investment in multimodal transport corridors that integrate regional production zones with international trade routes. He stressed the central role of the Suez Canal—through which over 100 vessels transit daily—and detailed ongoing upgrades to Egypt's seaports, logistics centres, and high-speed rail lines as part of a broader vision to reinforce the country's logistical connectivity. Further advancing regional cooperation, Al-Wazir met with Bulgarian Deputy Prime Minister Grozdan Karadjov to accelerate bilateral agreements in maritime and logistics. Key among these was a planned memorandum of understanding between Alexandria Port and Bulgaria's Port of Burgas. The talks also explored joint industrial ventures focused on technology transfer and coordinated exports to African markets. Al-Wazir stressed that Egypt is transitioning from a traditional transit corridor to a fully integrated hub for transport and production. He presented Egypt as a stable and strategic partner within global supply chains, contributing actively to initiatives such as China's Belt and Road Initiative, the India-Middle East-Europe Corridor (IMEC), and the emerging Development Road linking Iraq, the Gulf, and Europe. Concluding his visit, Al-Wazir reaffirmed Egypt's commitment to strengthening regional and global economic integration. He extended an open invitation to international partners—particularly from Türkiye and Bulgaria—to invest in Egypt's transport infrastructure and manufacturing sectors. Emphasising the importance of shared infrastructure, technology-driven planning, and resilient logistics networks, he reiterated Egypt's readiness to support investors committed to engaging with its real economy and contributing to a redefined regional trade landscape.
Daily News Egypt
8 hours ago
- Daily News Egypt
Egypt's Al-Sisi reviews plan to engage private sector in airport development
Egyptian President Abdel Fattah Al-Sisi on Saturday reviewed a comprehensive strategy to develop the country's civil aviation sector, including plans to involve the private sector in operating airports to help achieve a national target of 30 million tourists annually, the presidency said. The president met in New Alamein with Civil Aviation Minister Sameh El-Hefny and the chairperson of EgyptAir Air Services, Soheir Abdallah, to discuss the plan, which covers air navigation, the aircraft fleet, and airport development. Al-Sisi directed officials to proceed with offering Hurghada airport for partnership with the private sector by the end of 2025, according to a presidential statement. This move is part of a national strategy, prepared in cooperation with the International Finance Corporation (IFC) as a strategic advisor, to engage private companies in the operation and development of 11 key airports. The strategy, which aims to enhance operational efficiency and improve services, is expected to be finalised before the end of summer 2025. The state will retain ownership of these assets. The statement quoted Al-Sisi as emphasising the need for international partnerships based on efficiency and sustainability, alongside incentives for the private sector, to transform Egypt's airports into advanced regional hubs. During the meeting, Al-Sisi was updated on the 'New Republic's Air Gateway' project at Terminal 4 of Cairo International Airport. The project aims to build a new passenger terminal with a capacity of at least 30 million passengers, which would raise the airport's total capacity to over 60 million passengers per year. The discussion also covered Egypt's air navigation system, which has received international praise for its performance, particularly amid recent regional crises that led to the closure of airspace in neighbouring countries. The increased traffic, reaching over 1,600 flights per day, was managed efficiently by Egyptian air traffic controllers, earning commendations from organisations such as Eurocontrol, the International Civil Aviation Organisation (ICAO), and the International Air Transport Association (IATA). A plan to restructure and modernise Egypt's airspace and its radar and communication systems was also reviewed. The meeting also addressed the progress made by the national carrier, EgyptAir. The airline was recently named 'Best Airline Staff in Africa' for 2025 by the global rating organisation Skytrax. It also won awards for the best economy class meals, the most improved airline in Africa for the second consecutive year, and the best cabin crew on the continent. EgyptAir has climbed 20 places to rank 68th among the world's top 100 airlines. The statement also referenced the company's plan to modernise its fleet to 97 aircraft by the 2028/2029 fiscal year to enhance its competitiveness. Efforts to develop EgyptAir Air Services were also discussed, focusing on improving infrastructure, equipment, and staff training, as well as upgrading business lounges and improving the company's flight regularity rates.
Daily News Egypt
8 hours ago
- Daily News Egypt
OECD report provides roadmap for Egypt's SME and startup sector
The Organisation for Economic Co-operation and Development (OECD) and the Egyptian government have launched a report on small and medium-sized enterprise (SME) policy, which Cairo will use to update its national strategy for the vital sector, the government said on Saturday. The report, part of a cooperation programme between Egypt and the OECD, provides an analysis of the opportunities and challenges facing SMEs and entrepreneurs. It highlights the sector's significant potential but points to a need to encourage innovation and transition businesses from the informal to the formal sector, according to a government statement. SMEs represent more than 90% of economic activity in Egypt. Minister of Planning and International Cooperation Rania Al-Mashat said the report reflects the government's efforts to transform Egypt into a competitive, innovation- and knowledge-based economy. She noted the role of a ministerial group for entrepreneurship in coordinating efforts to support startups and said a 'Startup Charter' would be launched soon. Bassel Rahmy, head of the Micro, Small, and Medium Enterprises Development Agency (MSMEDA), stated that the agency would work to activate the report's recommendations in coordination with local and international partners. The report noted that Egypt, with a population of over 110 million, possesses a vast market and significant entrepreneurial potential. It also acknowledged that despite a boom in venture capital and investment in research, challenges remain in improving the business climate and enhancing competition. Among its key recommendations, the report called for developing a comprehensive annual database on small business performance and adopting an 'SME impact test' before approving new legislation, while also simplifying existing laws. It suggested establishing an independent mechanism to monitor SME law implementation. The report also recommended providing tax incentives for venture capital, increasing the capital of the Credit Guarantee Company (CGC), and creating a national strategy for digitising small businesses, which would include a tiered licensing system for fintech companies. Further proposals included developing a strategy for women's entrepreneurship and boosting the efficiency of business incubators through national accreditation standards. The cooperation between Egypt and the OECD falls under a Country Programme that has been extended until 2025. The programme includes 35 projects across five main axes, designed to integrate international expertise into Egypt's national development strategy, 'Egypt Vision 2030.' Egypt recently assumed the co-chairmanship of the OECD's Middle East and North Africa (MENA) Initiative on Governance and Competitiveness for the period 2026-2030, alongside Italy and Turkey.
