$500 million..High percentage of green investments in Egypt

Dr. Mohamed Maait, Minister of Finance, confirmed that the issuance of Chinese “Panda” bonds with a value equivalent to 500 million dollars, during the next few periods; To enhance the Egyptian path to achieving green development through expansion of clean transportation projects, renewable energy, sustainable management of water and sanitation, and other environmentally friendly fields.

Total green investments in Egypt

The minister added, at the meeting of the Alliance of Finance Ministers for Climate Action on the sidelines of the International Monetary Fund and World Bank meetings in Marrakesh, that the total green investments in Egypt rose from 15% in the fiscal year 2019/2020 to 30% in the fiscal year 2020/2021, and we aim to reach 50%. % in the next fiscal year, and we also aim to increase electricity supply from renewable sources to 42% by 2035.

  Pointing out that the government recently proposed new incentives to support the transition to a green economy, as part of its interest in promising sectors of regional and global priority, including an incentive to encourage green hydrogen production at a rate ranging from 33% to 55% of the taxes owed, and another incentive of up to 35%. From the cost of producing each electric car locally; In a way that contributes to attracting more environmentally friendly private investments.

“Debt Alliance for Sustainable Development” Initiative

The Minister indicated that we are presenting the “Debt Alliance for Sustainable Development” initiative to provide a strong impetus for environmentally friendly investments and reduce the burden of debt on developing countries, as this initiative contributes to creating a financial space to promote clean investments, and creating a new path for consultations at the “intersection of debt, climate and development.” 

He stressed that creating a debt swap mechanism for climate action could achieve progress in maximizing environmental and financial flexibility by using a new sustainable issuance that allows countries to reduce their debt burdens.

Sustainable solutions for green recovery

The Minister explained that the debt burdens of developing countries should be transformed into sustainable solutions for green recovery. Debt affects development priorities and reduces the capital available for climate investment.

Pointing out that the difficult financial situation of emerging markets hampers the process of climate action and development, a new path of consultations must be launched that makes the debt crisis part of the solution, by encouraging the flow of additional, more sustainable investments to support green growth and address environmental challenges.

Emerging economies

On another level, Dr. Mohamed Maait, Minister of Finance, stressed the importance of working to strengthen the efforts of multilateral development banks, to provide mixed and low-cost financing, mixing public and private financing, to support the ability of emerging economies and developing countries in the green recovery process, to maximize adaptation efforts to climate change. In light of the unprecedented challenges facing the budgets of these countries, as a result of successive global economic crises, which requires developing a more sustainable financing strategy.

Meetings of the International Monetary Fund and the World Bank

During his participation in the activities of the first day of the meetings of the International Monetary Fund and the World Bank, held in the Moroccan capital, Marrakesh, the Minister called on international financial institutions and multilateral banks to support environmentally friendly development projects, and to exchange expertise and experiences for these institutions, on the current challenges and opportunities available in order to reach policies capable of achieving Financing comprehensive and sustainable development goals.