A ministerial statement said the initiative, funded by USAID with a total of $14.25 million, aims at protecting and sustaining the Red Sea's coral reef environment.
Minister Fouad indicated that the project includes establishing the Egyptian Fund for Coral Reefs (EFCR), which will provide grants to civil society and non-governmental organizations supporting coral-friendly activities.
The fund will also implement a long-term plan to raise donations to ensure coverage of all operational costs, offer blended financing, and provide grants for investments that benefit coral reefs.
Moreover, the project will create a coral reef business incubator to finance environmentally friendly projects.
Such projects support the expansion of micro, small, and medium-sized enterprises (MSMEs) with positive impacts on coral reefs, community initiatives, and businesses that benefit local communities, contributing to sustainable development and protection of marine resources in collaboration with international partners.
The initiative, first announced at COP27, will run from 2024 to 2030.
It will contribute $5 million to the EFCR as a seed capital for financing approved projects and businesses.
The remaining $9.25 million will support programme activities and cover operational costs for the first two years.
In addition, Fouad highlighted that this initiative is a crucial step in Egypt's efforts to preserve its natural heritage, bringing together multiple stakeholders to develop financial solutions that benefit the coral reef environment and local communities.
She also emphasized the importance of coral reefs as a vital part of the marine ecosystem and a key contributor to Egypt's economy through the tourism and fishing industries.
Fouad stressed the urgent need to protect these reefs from increasing threats, including climate change, overfishing, and unsustainable tourism practices.
Furthermore, the project aims to protect nearly 99,899-hectare coral reefs in the Egyptian Red Sea, including 13,637 hectares in the Wadi El-Gemal National Park and 50,612 hectares in the Northern Red Sea Islands Protected Area.
According to the statement, UNDP Resident Representative in Egypt Alessandro Fracassetti stated that the initiative will bring new resources, partners, and capacities that efficiently manage and protect coral reefs. This aligns with Egypt's national priorities and sets a global example of environmental conservation.
For his part, USAID Mission Director Sean Jones noted that this initiative builds on decades of Egyptian-American partnership in protecting natural resources and empowering local communities to adapt to climate change.
The USAID fund will contribute to establishing the EFCR, which will provide blended financing opportunities and support the creation of a coral reef business incubator.
Additionally, the UNDP will be involved in identifying investment opportunities, ensuring the application of environmental and social safeguards, monitoring outcomes, and providing comprehensive programme management.
The University of Bristol (UK) will participate in the scientific aspects of coral aquaculture to enhance ecosystem resilience and aquarium trade, in collaboration with the GFCR, according to the ministry statement.