According to the ministry’s latest report on the FY2025/2026 economic and social development plan, the allocation marks a qualitative leap in integrating environmental priorities into state investment planning. The breakdown shows 64 percent of these funds will go to mitigation projects, while 36 percent will target adaptation measures.
Gradual transition into a green economy is one of the key pillars of the newly-launched Egypt’s Narrative for Economic Development the government launched last week. The narrative draws a path for the Egyptian economy through 2030.
“The steady increase in green investments reflects Egypt’s commitment to transforming climate challenges into growth opportunities while ensuring balance between environmental transition and economic development goals,” Al-Mashat said.
The report underlineed that stronger climate-aligned public investments boost international confidence, opening the door for additional green and sustainable financing to bridge funding gaps and accelerate climate transition projects.
Climate action priorities
The plan highlighted Egypt’s focus on policies that reduce emissions and enhance climate resilience, setting ambitious national targets across the energy, industry, transport, agriculture, and waste management sectors. Priorities include expanding renewable energy — solar, wind, and green hydrogen — cutting reliance on fossil fuels, and localizing eco-friendly technologies.
The government also plans to strengthen protections for vulnerable areas through coastal defense and land preservation projects.
Strategic targets
The share of green public investments has climbed from 15 percent in FY2020/2021 to an expected 55 percent in FY2025/2026, with a target of 60 percent by FY2026/2027. Egypt also seeks to raise its score on the Climate Public Investment Management Index from 1.53 in 2022/23 to 1.8 in FY2025/2026, an 18 percent improvement.
Green transport (64 percent), Decent Life projects (13 percent), and sustainable urban development (10 percent) will remain the top recipients of green funds, alongside increasing allocations to clean energy, agriculture, irrigation, and environmental enhancement.
Green financing push
The ministry stressed that green financing remains a top priority, with expanded use of instruments such as green bonds, sukuk, sovereign bonds, and concessional financing. Egypt also aims to broaden private sector participation in sustainable investments while enhancing capacity building and awareness.
The National Climate Change Strategy is guiding these efforts as a roadmap for low-emission sustainable development, covering economic growth, resilience building, climate governance, financing infrastructure, research, and awareness.
Practical mechanisms include a national programme to curb greenhouse gas emissions, embedding climate goals in national plans, financial incentives for green projects, regular updates to environmental legislation, expanded adaptation projects in vulnerable sectors, and wider public engagement to promote sustainability.
The first review of the recently-approved Resilience and Sustainability Facility (RSF) is anticipated to be completed in December. The $1.3 billion loan programme sets 10 measures for climate action efforts on the country.
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