Egypt to benefit from green bonds following legislative amendments: FDHRD

Ahram Online , Wednesday 27 Jul 2022

The Egyptian Forum for Development and Human Rights Dialogue (FDHRD) called for introducing legislative amendments to speed up the country's ability to benefit from green bonds.

Egypt
Renewable energy generation projects could be financed by green bonds photo: Reuters

 

The transition from brown to green economy will reduce the repercussions of climate change and achieve sustainable development, read a policy paper the FDHRD released on Wednesday. 

The paper reviewed Egypt’s efforts to issue sovereign green bonds worth $750 million in 2020, stating that Egypt is the first country in the Middle East and North Africa to make this move.

It suggested reducing the investment value of fossil fuel-based subsidies, and amending legislation to reduce carbon emissions resulting from industrial and economic activities.

The paper said this step will help encourage investors to invest in green projects and push pioneers and exporters to initiate new projects to reduce climate change.

Entitled "The Green Economy and its Role in Reducing Climate Change and Achieving Sustainable Development," the paper presented several essential alternatives to move towards a green economy to secure the rights of this and future generations.

The FDHRD is an Egyptian NGO founded in 2005 to promote human rights, increase people's awareness about their rights and responsibilities, and combat human trafficking and irregular immigration on the local and global levels.

The Cairo-based FDHRD warned of the danger of climate change and the high rates of global warming, saying it may cause entire cities and countries to vanish and negatively affects economic growth rates.

The paper said the main objective of green investment is to mitigate climate change, preserve biodiversity, and preserve the environment. 

According to the World Bank, green bonds are fixed-income securities whose profits are used to obtain financing for sustainable projects related to the environment and climate, including in clean energy, climate conservation, and sustainable waste management, said the FDHRD paper.

The policy paper stressed the necessity of recycling solid waste, praising the popularity of the culture of waste recycling in many countries and Egyptian efforts in this regard, such as the “Be Prepared for Green” initiative. 

The initiative was launched by President Abdel-Fattah El-Sisi within the framework of Egypt’s Strategy for Sustainable Development (Egypt’s Vision 2030).

The initiative aims to raise awareness about the importance of afforestation, waste recycling, reducing the use of plastic, and rationalising food and energy consumption.

The paper also shed light on successful international experiences in green economy, including the experiment of the European Union and the European Green Agreement.

Hopes are pinned on COP27 to turn climate-related pledges into action to move to green energy to reduce harmful gas emissions and global warming and adapt to climate change as per the Paris Agreement.

The Paris Agreement — adopted at COP21 and signed by over 190 states including Egypt — came into effect in 2016 with the aim of limiting the rise in temperature to 1.5 degrees Celsius.

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