Ministry of Planning, Economic Development and International Cooperation Reviews National Priorities and Egypt's Strategy for Addressing Climate Change and Transitioning to a Green Economy within the 2025/2026 Plan

As part of a series of periodic reports on the targets of the economic and social development plan:

 

Ministry of Planning, Economic Development and International Cooperation Reviews National Priorities and Egypt's Strategy for Addressing Climate Change and Transitioning to a Green Economy within the 2025/2026 Plan

Al-Mashat:

EGP 637 billion in public investments in the 2025/2026 plan are allocated to green projects, representing 55% of total investments.

The continuous increase in the volume of green investments reflects Egypt's commitment to turning climate challenges into growth opportunities.

As part of the periodic reports published by the Ministry of Planning, Economic Development and International Cooperation on the economic and social development plan for the fiscal year 2025/2026, the Ministry reviewed the national efforts and priorities adopted by the Egyptian state to address the challenges of climate change, transition to a green economy, and integrate the environmental dimension into public policies.

Increase in the Percentage of Green Public Investments

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, noted that the economic and social development plan aims to increase investments directed toward green projects to EGP 637 billion, the equivalent of 55% of total public investments. These investments are distributed between mitigation and adaptation, with 64% for mitigation and 36% for adaptation.

Dr. Al-Mashat emphasized that the steady increase in green investment reflects Egypt's commitment to transforming climate challenges into growth opportunities while balancing environmental transition with economic development goals. She added that raising the share of green investments to 55% of total public investments represents a qualitative leap in integrating the environmental dimension into the state’s investment planning.

The Minister highlighted that improving the climate performance indicators for public investments strengthens the confidence of international partners and paves the way for attracting more green and sustainable financing, which Egypt needs to close the funding gap and efficiently implement climate transition projects.

Climate Action Priorities

The economic and social development plan outlines several national priorities for addressing climate change, both domestically and internationally. These include: giving priority to policies and programs that adapt to climate change and mitigate its impacts; reducing emissions through ambitious national goals covering the energy, industry, transport, agriculture, and waste management sectors; expanding renewable energy production (solar, wind, green hydrogen) and reducing reliance on fossil fuels; localizing environmentally friendly technologies that save energy and water; and supporting areas most vulnerable to climate impacts through coastal protection and low-lying land projects.

Strategic Directions

The plan also sets out strategic directions for 2025/2026, including: increasing the share of green public investments from 15% in 2020/2021 to 55% by the end of 2025/2026, and reaching 60% by 2026/2027; improving Egypt’s position in the Climate-Resilient Public Investment Assessment Index from 1.53 points in 2022/2023 to 1.8 points in 2025/2026 (an 18% increase); increasing the share of climate adaptation investments to 36% of total green investments in 2025/2026; and continuing to prioritize green transport (64%), “Decent Life” (Haya Karima) projects (13%), and sustainable urban development (10%), while increasing focus on other sectors such as clean energy, agriculture, irrigation, and environmental improvement.

Green Financing

The plan emphasizes that green financing is one of the state’s top priorities in addressing climate change. This includes promoting innovative financing tools such as green bonds, green sukuk (Islamic bonds), sovereign bonds, and concessional financing; encouraging private sector participation in sustainable investments; and building capacity and awareness.

The plan also highlights the National Climate Change Strategy as Egypt’s roadmap for achieving low-emission sustainable development. Its objectives include achieving low-emission economic growth, enhancing resilience and adaptation capacity, improving governance and climate action management, developing infrastructure for climate financing, and promoting scientific research, technology transfer, and awareness.

The strategy sets forth practical mechanisms such as the National Program for Reducing Greenhouse Gases and monitoring compliance with environmental standards; integrating climate issues into national policies and plans; using financial incentives to encourage green projects; regularly updating environmental legislation and standards; expanding adaptation projects in vulnerable sectors; and raising community awareness to foster a culture of sustainability.