Arab Region needs $400 Billion To Bridge the Climate Finance Gap: Minister of Planning & Economic Development

H.E. Dr. Hala El-Said, Minister of Planning and Economic Development, participated today, via video conference, in the high-level session on mobilizing climate finance, which was held within the activities of the “Towards COP27: Arab Regional Forum on Climate Initiatives to Finance Climate Action and the SDGs” in the Lebanese capital, Beirut.
The forum is considered one of five regional forums organized by the Egyptian Presidency of COP 27 with the United Nations High-Level Pioneers on Climate Change and the five United Nations Regional Committees, in the context of preparations for the COP twenty-seventh.


Dr. Hala El-Said said that by 2030, it will cost about $400 billion at least to bridge the climate finance gap in the Arab region, which will require many strengthened partnerships and investments, as well as providing innovative solutions, emphasizing the focus on forming partnerships and attracting Increasing numbers of companies, large and small, are developing solutions to advance climate action.

El-Said added that the forum contributes to providing a space for an open dialogue between representatives of governments, the private sector, and the international development community. Environmental sustainability criteria, where the percentage of green projects in the investment plan currently represents 40% of the total public investments in the 2022/2023 plan, with a target to reach 50% of green projects by the end of 2024-2025.
The Minister of Planning also touched on Egypt’s launch of the Egyptian National Strategy for Climate Change, with the promotion of innovative financing mechanisms that prioritize adaptation measures, such as green bonds, in addition to enhancing the participation of the private sector in climate finance and promoting jobs, as well as providing a set of incentives to support the green economy, pointing out The government offers a range of incentives to support the green economy, including green hydrogen production, waste management, recycling projects, and energy-saving projects.

On The Sovereign Fund of Egypt (TSFE), Hala El-Said explained that the partnership between the public and private sectors will contribute to enabling Arab countries to meet the challenges of mobilizing financing and resources to address climate change, as well as its contribution to supporting adaptation efforts in the region and enhancing their resilience.
El-Said added that Egypt’s ambitions to become a center for green energy will require large investments from the private sector in renewable energy, green hydrogen, green ammonia, and water desalination, among other promising sectors.
The Minister of Planning also touched on the National Green Projects Initiative, which is supervised by the Ministry of Planning and Economic Development to confront climate change with a comprehensive approach to achieve all sustainable development goals, while raising awareness regarding climate change at the local level.

On mitigation projects; El-Said said that despite contributing to only 0.7% of global greenhouse gas emissions, Egypt spares no effort to strengthen programs and projects to mitigate its emissions, noting that in 2015, the government launched a “feed-in tariff” for renewable energy, to encourage the private sector to invest In this important sector, and as a result, Egypt now hosts the world’s largest solar farm in Benban-Aswan, which was established through a €4 billion multi-stakeholder public-private partnership, to generate 2 gigawatts of electricity and create jobs. Decent for the local community in Aswan.
El-Said added that Egypt hosts one of the largest wind farms in the world in the Gulf of Suez (Gebel El-Zeit), with 300 turbines covering 100 square kilometers, generating a total capacity of 580 megawatts, at an estimated cost of EGP 12 billion, in addition to clean mobility projects, including Investing in electric trains and monorails and replacing traditional public transportation with electric and natural gas vehicles.
The Minister of Planning stressed the urgent need to provide climate finance to developing countries, especially those that are mostly affected by the consequences of climate change despite their lower contribution to emissions, noting that the current provision of climate finance for adaptation is still insufficient to respond effectively to the exacerbating effects of climate change.
El-Said continued that great emphasis should be placed on the need to increase the volume and predictability of adaptation financing from all sources, including the public and private sectors, international financial institutions, and development banks, stressing Egypt’s appreciation for partnerships at all levels, especially through cooperation with organizations International and the private sec