This initiative is part of Egypt's broader approach towards a low-carbon economy and environmental sustainability. 

By 2040, the strategy aims to increase Egypt's GDP to nearly $18 billion, create over 100,000 jobs, and double energy security through diversified sources. 

It also targets significant carbon emission reductions and supports the transition to a green economy.

The strategy includes plans to expand hydrogen and derivative production, increase domestic hydrogen use in industries and transportation, and eventually export to global markets. 

Prime Minister Mostafa Madbouly noted in a statement that the strategy contributes to enhancing Egypt’s efforts towards diversifying clean and sustainable energy sources and reducing carbon emissions in line with its international commitments.

He emphasized the importance of this strategy as it comes within the steps aimed at achieving the sustainable development goals of “Egypt Vision 2030.”

Egyptian cabinet’s official spokesperson Mohamed Elhomosany said that the strategy depends on Egypt’s distinguished geographical location and abundant natural resources, especially solar and wind energy, to support the production of low-carbon hydrogen.

He added that the strategy aims to enhance cooperation with international partnerships and financial institutions to promote research, development, and investment in this field.

According to Elhomosany, the strategy was carried out in cooperation with several international partners, notably the European Bank for Reconstruction and Development (EBRD).

The National Council for Green Hydrogen, established in 2003, will oversee the strategy's implementation and monitor progress annually, where a dedicated investment website has been launched to attract private sector participation.

The outcomes of the strategy were presented during the COP 27 conference in Sharm El-Sheikh.

In February, Egypt signed seven Memoranda of Understanding (MoUs) in green hydrogen and renewable energy with seven global developers with expected investments worth $41 billion over ten years, the Egyptian cabinet announced.

At COP 27, Egypt approved a framework agreement with nine developers for a green hydrogen and derivatives megaproject at the Suez Canal Economic Zone (SCZone).

Egypt plans to become an international hub for producing and exporting green hydrogen, especially to Europe.

Furthermore, Egypt will take advantage of its competitiveness to fulfill its ambitious plans for the hydrogen sector, targeting up to eight percent of the tradable market by 2040 and requiring around $60 billion of investment.

Egypt has approved the National Strategy for Integrated Sustainable Energy, which aims to have 42 percent of Egyptian energy generated from renewable sources by 2035.