Minister of Planning, Economic Development, and International Cooperation Reviews Egypt’s Efforts Toward Clean Energy Transition and Partnerships with International Financial Institutions to Mobilize Private Sector Investment

Dr. Rania Al-Mashat: Clean energy transition promotes climate action and drives foreign direct investment, productivity, and job creation.

 

Partnerships with International Financial Institutions have contributed to mobilizing private sector investments in renewable energy and green hydrogen.

 

Strengthening regional integration with neighboring countries and implementing electricity interconnection projects to enhance energy security.

 

Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, participated in a session titled “Checking In on the Energy Transition” as part of her participation as Co-Chair at the World Economic Forum Annual Meetings held under the theme “Resilient Economic Policies to Keep Up with Global Changes” in Tianjin, China. Participants included Mohammad Abunayyan, Founder and Chairman of ACWA Power in Saudi Arabia, Pang Xiaogang, Chairman of the State Grid Corporation of China, and the session was moderated by John Defterios, Member of the Governing Board of the United Nations “Sustainable Energy for All” in Vienna.

 

In her speech, H.E. Dr. Al-Mashat explained that joint cooperation between international institutions is a strong driver for development in light of the current global challenges, especially in terms of development opportunities and capital attraction. H.E. added that such partnerships highlight the vital role international financial institutions can play in supporting the private sector, not only at the level of large corporations, but also at the level of local enterprises that contribute to job creation and sustainable development within nations.

 

H.E. emphasized that localizing development and creating job opportunities on the ground is a core aspect of the role of international institutions, ensuring that their developmental goals are maintained, enhancing their financial stability, and opening the way for new partnerships based on growth rather than debt expansion.

 

H.E. Dr. Al-Mashat spoke about Egypt's clean energy transition efforts, where it outlined a clear target in its Nationally Determined Contributions (NDCs), which aims to reach 42% renewable energy by 2030, noting that this target is not just environmental, but mainly economic, as it contributes to attract foreign direct investment and mobilize low-cost financing,which is an essential factor in the case of Egypt.

 

Furthermore, H.E. reaffirmed that Egypt is emerging as a regional hub for green industrial transformation, as demonstrated by the Green Hydrogen Zone project in the Suez Canal Economic Zone, which is being implemented through multiple phases with strong public-private partnerships to position Egypt as a regional hub for clean fuel production and export, explaning that the project is based on a state-private sector alliance model and reflects Egypt’s ability to rapidly and efficiently mobilize financing, aiming to make Egypt a hub to export of clean fuel to Africa, Europe, and Asia.

 

In this regard, H.E. pointed to the country platform of the “NWFE”  program, which Egypt launched and became a leading national platform internationally in mobilizing climate investments, and in two and a half years, the platform succeeded in mobilizing $4 billion in concessional financing for the private sector to implement renewable energy projects.

 

Dr. Al-Mashat also pointed to the importance of regional integration in the field of renewable energy to strengthen economic cooperation and expand opportunities for export and investment, citing the electricity interconnection project between Egypt and Saudi Arabia, which is considered one of the strategic projects that not limited to connecting the two countries, but its benefits extend to enhancing energy stability in the region and opening the way for the expansion of energy exports to neighboring countries, which reflects the role of infrastructure in supporting joint regional growth, pointing also to cooperation with the Republic of China in initiatives such as the Belt and Road Initiative and multilateral partnerships to support Egypt’s energy goals.

 

H.E. affirmed the importance of expanding innovative financing mechanisms that mobilize more private capital without imposing additional burdens on developing countries’ budgets, noting the role of international financial institutions in Egypt, including the International Finance Corporation (IFC), the European Investment Bank (EIB), and British International Investment (BII), and others, which  contribute to financing the private sector, providing guarantees to expand the scope of financing, as well as providing blended finance that reflects cooperation, coordination, and integration among various institutions, which enhances the ability of countries to finance their projects and direct them according to their national priorities.

 

In preparation for the upcoming Fourth International Conference on “Financing for Development,” scheduled to be held soon in Seville, Dr. Al-Mashat underscored that the conference comes at a critical moment of global challenges and and the world is counting on it to drive efforts to restructure the global financial system in order to achieve the UN Sustainable Development Goals (SDGs).

 

H.E. concluded by emphasizing the importance of highlighting inspiring success stories that provide momentum and reinforce trust in the partnership-based development model, affirming that the energy transition is not limited to reducing emissions, but also includes creating job opportunities, enhancing productivity, and achieving more inclusive growth, especially in light of the escalating cost of financing in emerging markets.

 

The World Economic Forum published a promotional video about the event across its social media platforms, focusing on the remarks of the Minister of Planning, Economic Development, and International Cooperation on the green transition in Egypt.

Minister of Planning, Economic Development, and International Cooperation Reviews Egypt’s Efforts Toward Clean Energy Transition and Partnerships with International Financial Institutions to Mobilize Private Sector Investment