H.E. Dr. Rania Al-Mashat participates in the "Finance, Investment and Trade" Day at COP29 Minister of Planning, Economic Development and International Cooperation Participates in the Launch of the Independent High-Level Expert Group (IHLEG) Report on “Raising Ambition & Accelerating Delivery of Climate Finance”

Expert Group Report: Global climate action investment needs estimated at $6.3 - $6.7 trillion annually by 2030.

Dr. Rania Al-Mashat: "A new global financial system is needed to meet the growing climate finance demands of developing and emerging economies."

Key Call: Urgent reform needed in the business models of development banks and international institutions to unlock innovative climate financing.

Al-Mashat Highlights: Egypt's leadership in diversifying energy sources and expanding green investments during the Hitachi Energy panel.

On Finance, Investment, and Trade Day at the COP29 Climate Conference in Baku, Azerbaijan, themed "In Solidarity for a Green World”,  H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, participated in the launch of the Independent High-Level Expert Group (IHLEG) report on "Raising Ambition and Accelerating Delivery of Climate Finance."

The event featured prominent figures, including Mr. Simon Stiell, Executive Secretary of the UNFCCC, Ms. Marisa Drew, Chief Sustainability Officer of Standard Chartered Bank, Mr. Mark Bowman, Vice President for Policy and Partnerships at the EBRD, Mr. Carsten Staur, Chair of the DAC of the OECD, Ambassador Majid Al Suwaidi, CEO of Altera, Avinash Persaud, Special Advisor on Climate Change to the President of the IDB, and Chinua Azokobaye, CEO of InfraCredit.

The report projected that global investments for climate action will need to reach $6.3 - $6.7 trillion per year by 2030, with $2.3 - $2.5 trillion required specifically for developing and emerging economies (excluding China), as climate challenges intensify and resilience-building costs surge.

In her speech, H.E. Dr. Rania A. Al-Mashat stressed the critical need for innovative financing mechanisms to bridge funding gaps, highlighting the importance of leveraging public funds to mobilize private investment. H.E. called for the reform of development banks and international financial institutions to promote mixed-financing models, guarantees, and other instruments that can better facilitate private sector involvement in climate financing.

Dr. Al-Mashat noted that despite high capital costs and trade barriers, the share of private climate finance in emerging markets rose from 43% to 47% of total financing, with the energy sector’s share of fully private-financed projects dropping from 97% to 82%, signaling diversification into other industries.

Moreover, H.E. also outlined the Ministry’s comprehensive approach to enhancing the private sector’s role in climate action, emphasizing the use of various tools such as concessional funding, technical support, and capacity-building initiatives. Since 2020, over $11 billion in concessional financing has been channeled toward climate-related private sector projects in Egypt, contributing to both economic development and the country’s green transition.

She highlighted the Ministry's Hub for Advisory, Finance & Investment for Enterprises, a pivotal initiative consolidating financial and advisory services from international development partners to further mobilize private climate finance. Dr. Al-Mashat also referenced Egypt’s NWFE program, launched during COP27, which has successfully facilitated concessional funding agreements exceeding $2 billion in the energy sector, attracting additional private investments and launching renewable energy projects with a total capacity exceeding 3.7 GW.

 

Renewable Energy Integration

In a panel discussion hosted by Hitachi Energy at the Swedish Pavilion, H.E. Dr. Rania Al-Mashat discussed Egypt's strategy for becoming a regional hub for renewable energy, with a target to ensure 42% of its energy mix is derived from renewable sources by 2030. This initiative is a cornerstone of Egypt’s climate strategy and its commitment to sustainable economic development.

The panel, moderated by Roland Roesch, Director of the Innovation and Technology Center at IRENA, included Mr. Andreas Schiernbeck, CEO of Hitachi Energy, and Mr. Giles Dixon, CEO of the European Wind Energy Association.

Dr. Al-Mashat emphasized Egypt’s unique renewable energy resources, noting the major advancements made under the energy pillar of the NWFE program, including a 10 GW renewable energy project and the discontinuation of 12 traditional energy stations.

H.E.  concluded by discussing Egypt's efforts to increase the share of green projects in its investment plan, which currently stands at 40%, with a target to reach 50% in the coming years. She highlighted Egypt’s ambitious project to establish the largest energy connection in the Middle East with Saudi Arabia, aiming to enhance energy security and sustainability for both countries.