EBRD, EU, GCF back Egypt with $ 175.5m for greener economy

01 / 02 / 2023

By Marwa Nassar - -

The European Bank for Reconstruction and Development (EBRD), the European Union (EU) and the Green Climate Fund (GCF) are backing Egypt with $ 175.5 million for greener economy.

The new funding – offered under the Green Economy Financing Facility program (GEFF) in Egypt – is meant to support green programs and investments for the private sector.

The funding will be made available to local financial institutions to on-lend to the private sector for investments in climate change mitigation and adaptation projects, supporting decarbonization and competitiveness of the Egyptian economy.

Egypt is among the largest energy producers and suppliers in Africa. It is also one of the most populated countries in the region with more than 100 million inhabitants. Demand for water and energy is growing due to climate change and rapid population growth.

The new GEFF program is addressing these challenges by encouraging micro, small and medium-sized enterprises (MSMEs) to invest in green and innovative technologies that promote the efficient use of water, sustainable land management, the circular economy and resource efficiency.

The program also offers an integrated technical assistance package and financial incentives from the EU and concessional co-financing from the GCF.

At the event, the EBRD presented strategies for supporting Egypt’s green transition and discussed the opportunities and challenges of building climate resilience in the financial sector through Paris alignment.

EBRD representatives, along with representatives from local partner banks, discussed their partnership under the GEFF and the Green Value Chain (GVC) Egypt programs, and their role in greening value chains by facilitating business investments in green technology.

The event was attended by the Minister of International Cooperation, Rania Mashat; the Minister of Environment, Yasmine Fouad; Ambassador Christian Berger, Head of the European Delegation to Egypt and Central Bank of Egypt First-Sub-Governor, May Aboulnaga.

Representatives from the EBRD included the Managing Director for the Southern and Eastern Mediterranean region, Heike Harmgart; the Managing Director for Financial Institutions, Francis Malige; Director for Green Financial Systems, Maya Hennerkes; and the Director for the EBRD’s office in Egypt, Khalid Hamza.

“To accelerate progress towards the green transition, international cooperation is key. The ongoing collaboration between the EBRD, the EU and the GCF, has been particularly impactful through the Green Economy Financing Facility Egypt II. The GEFF Egypt works to increase private sector engagement in green-based climate projects, addressing financial tools that help companies, including MSMEs unlock investments in green and innovative technology,” said Minister of International Cooperation Dr. Rania Mashat.

“Egypt pursues an ambitious strategy to fight the effects of climate change. Like in Europe this can help building economic resilience and strengthening competitiveness on the path to a low-emission economy. Phase II of the Green Energy Financing Facility is a model that illustrates the support the EU and its financial institutions can provide to encourage and stimulate green economy investment”, said Ambassador Christian Berger, Head of the European Union Delegation to Egypt.

Heike Harmgart said: “We are very proud to strengthen our green investments in Egypt through the GEFF and GVC programs, along with the help of our strong partnership with the EU and GCF. These unique programs have proven their success in the country throughout the years and we hope to continue to build a greener and more resilient and inclusive economy with the valuable support of our partner financial institutions.”

The EBRD, through its Green Facilities program in Egypt, has invested €240 million to support resource efficiency, climate adaption and the circular economy.