Egypt, IMF start discussion on $1.2 billion climate financing package

Ahram Online , Saturday 18 May 2024

Egyptian and International Monetary Fund (IMF) officials have initiated discussions around a $1.2 billion long-term financing package to support Egypt's climate-related projects.

Egypt, IMF
Minister of the Environment Yasmine Fouad (C), representatives from other government ministries and entities, and the IMF's Mission Chief for Egypt Ivanna Vladkova Hollar (L) at the meeting. Courtesy of the cabinet

 

The meeting, held in the New Administrative Capital, brought together Minister of the Environment Yasmine Fouad, representatives from other government ministries and entities, and the IMF's Mission Chief for Egypt Ivanna Vladkova Hollar.

This new financing is being considered under the IMF's Resilience and Sustainability Facility, which provides extended funding to help countries address longer-term challenges like climate change.

Minister Fouad said the meeting complements previous meetings between the government officials, on one side, and between the government and the IMF Fund, on the other side, to discuss coordination and cooperation frameworks to enhance environmental and climate policies in Egypt.

These previous meetings, she added, dealt with a set of clarifications between the two sides about the required reforms in climate policies, Fouad noted, according to a statement released following today’s meeting.

Egypt has launched its National Climate Strategy 2050 and updated Nationally Determined Contributions (NDC) twice in recent years.

Under its National Climate Strategy 2050, Egypt aims to reduce carbon emissions using renewable and alternative energy, increasing the share of renewable energy to 42 per cent by 2030.

The country has issued a law on waste management to manage all types of waste and create an atmosphere conducive to private sector investments, whether in solid waste, such as collecting, transporting, recycling, or even investing in converting waste into energy.

In 2022, Egypt hosted the UN Climate Change Conference (COP27) in the coastal city of Sharm El-Sheikh, where it proposed several regional and international climate initiatives.

The COP27's plans ensure 100 percent of national projects meet green and sustainability standards by 2030.

The Egyptian government has also signed dozens of renewable project agreements with regional and international corporations to maximize renewable energy capacity.

According to Fouad, the government seeks to collaborate with the IMF to build upon its existing national climate initiatives. 

She noted that the government aims to leverage the experiences of other countries that have undertaken similar efforts, such as Morocco and Bangladesh.

The minister explained that the government is keen to identify the strategies and policies needed to enhance Egypt's resilience and sustainability, define the requirements and financing mechanisms for green growth, and increase green investments in both the public and private sectors.

"Egypt also targets developing a national adaptation strategy as one of the government's urgent priorities," she added.

The government also seeks to strengthen the legal framework for its climate efforts, including adding a chapter on both climate mitigation and adaptation to the environmental law.

Additionally, the minister noted that the government needs to accelerate its efforts to transition to a low-carbon economy, particularly in the energy, transportation, and petroleum sectors.

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