Egypt Receives High-Level Delegation from the CIF, EBRD, AfDB, World Bank, and IFC to Discuss Investment Plan for Green Industrial Projects

Within the CIF Industrial Decarbonization Program

 

Egypt Receives High-Level Delegation from the CIF, EBRD, AfDB, World Bank, and IFC to Discuss Investment Plan for Green Industrial Projects

 

 

Dr. Rania Al-Mashat:

 

Egypt is among 7 countries benefiting from the world's first concessional financing initiative for industrial emissions reduction.

 

Egypt benefits from $250 million in concessional financing, in addition to supplementary funding from Multilateral Development Banks and the private sector.

 

Integrated efforts through several programs to promote the green transition in the industrial sector to increase the competitiveness of Egyptian exports.

 

Coordinating efforts between international partners, the government, and the private sector to maximize the program's benefit.

 

Consolidating the concept of "Blended Finance" from international institutions, the private sector, and the government to advance development and climate action efforts.

 

 

 

The Ministry of Planning, Economic Development and International Cooperation will host a high-level delegation this week, comprising representatives from the Climate Investment Funds (CIF), the European Bank for Reconstruction and Development (EBRD), the World Bank (WB), the African Development Bank (AfDB), and the International Finance Corporation (IFC). The delegation will consult on the implementation of the Industrial Decarbonization Program, recently launched by the CIF, which is considered the first global concessional financing initiative dedicated to reducing harmful emissions in the industrial sector of developing countries.

 

This visit aligns with the Ministry of Planning, Economic Development and International Cooperation's role in coordinating efforts among national entities, development partners, and international institutions to advance the green transition in the industrial sector, maximize benefits from international initiatives and development financing, and increase private sector participation in financing the green transition in Egypt through blended finance.

 

The delegation aims to hold workshops with relevant national entities and the private sector involved in this file, to introduce the program and its available mechanisms. The delegation also seeks to understand the current situation of the industrial sector, the efforts made by the Egyptian state to reduce industrial carbon emissions, and to explore ways to leverage the program in light of Egypt's needs and priorities.

 

In this context, H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, highlighted that the Arab Republic of Egypt was recently selected to benefit from the program offered by the Climate Investment Funds, which aims to reduce carbon from the industrial sector, reflecting the state's commitment to transitioning towards a green and sustainable economy.

 

Dr. Al-Mashat pointed out that the program provides Egypt with financing of up to $250 million in concessional financing to contribute to the implementation of projects that will reduce industrial carbon, in addition to providing a technical assistance grant of $500,000 to support the preparation of the program's investment plan. This will help formulate a comprehensive vision for priority projects, alongside supplementary funding from partner institutions represented by the EBRD, the World Bank, the IFC, and the AfDB.

 

Dr. Al-Mashat added that the Ministry of Planning, Economic Development and International Cooperation has worked to consolidate the concept of blended finance through numerous programs and initiatives, in addition to the country platform for the "NWFE" program, to integrate government financing with private sector investments and concessional financing from international institutions. This maximizes the benefit of the funding and incentivizes the private sector to inject local and foreign investments.

 

Dr. Al-Mashat noted that the Ministry held a series of preparatory meetings with key government entities active in industrial carbon reduction, such as the Ministries of (Industry and Trade / Petroleum and Mineral Resources / Electricity and Renewable Energy / Public Business Sector / Environment), with the aim of consultation and identifying the Egyptian government's ambitious priorities in the field of industrial carbon reduction, and how to benefit from the program.

 

Dr. Rania Al-Mashat emphasized that the program implemented by the CIF complements other ongoing programs aimed at increasing the competitiveness of Egyptian industry and exports and fostering the green transition, including the Sustainable Green Industries program funded by the European Investment Bank (EIB). She mentioned the Ministry's commitment to directing financing and the implemented programs toward the priorities of the Egyptian state.

 

The Minister of Planning, Economic Development and International Cooperation announced last June that Egypt was selected among 7 countries out of 26 applicants to benefit from the Industrial Decarbonization Program under the Climate Investment Funds (CIF), which is the first global concessional financing initiative dedicated to reducing harmful industrial emissions in developing countries, valued at $1 billion.

 

This program is part of the CIF's Clean Technology Fund (CTF), which has a total value of $9 billion, and relies on the Fund's private capital market mechanism, the first of its kind, to mobilize private capital to support countries' sustainable, inclusive, and resilient development priorities.