550 Mn from European countries to help Egypt decarbonize its power infrastructure

during President Joe Biden’s visit to COP27, The US, Germany and other European countries have pledged to provide more than USD 550 mn to help Egypt decarbonize its power infrastructure and install new renewable energy capacity, Under a political declaration with Egypt announced, the US and Germany agreed to provide more than USD 250 mn for the energy pillar of Egypt’s Nexus on Water, Food and Energy (NWFE) initiative, which aims to close 5-GW of gas-fired power plants and add 10-GW of new wind and solar energy by 2028.

• 100 mn highly concessional loans

 It can be said that Of the money pledged by Germany and the US, the equivalent of EUR 100 mn will come in the form of “highly concessional loans,” EUR 100 mn will be in the form of debt swaps, and EUR 85 mn in grants. More than USD 300 mn in grant and concessional finance will come from the European Commission, France, the Netherlands, Denmark, and the UK, as well as donors to the EBRD’s High Impact Partnership on Climate Action.

• USD 300 mn in sovereign finance

This brings to more than USD 1.8 bn the total funding for the energy transition we’ve raised in recent days after our friends at EBRD confirmed that they have committed "USD 1 bn of private renewable finance, USD 300 mn in sovereign finance and grants of USD 3 mn from its shareholder special fund".

Now we have to prove we’re serious about meeting our clean energy targets, In return for their support, Egypt has committed “quadrupling its deployment rate,” the EBRD statement quotes US climate envoy John Kerry as having said, adding “we’re going to help them with concessional financing to get the first 10 GWs done quickly and cost effectively.” Egypt will submit a revised NDC by June 2023 and will also consider committing to a net zero greenhouse gas emissions target as well as expand the use of zero-emission vehicles and sustainable public transport.

• 15 bn in investment under agreements Egypt

 Biden said “as a bonus The countries will help us save some of our natgas, Germany and the US will also help capture bns of cubic meters of natural gas that we currently flare, vent, or allow to leak from oil and gas operations and its may be reach to 4 bn cbm as Biden say in his speech”.

  its is expected to draw as much as USD 15 bn in investment under agreements Egypt signed with financial institutions and DFIs. It is hoped that the energy component of the initiative alone will receive as USD 10 bn in private investment.