The Egyptian government has partnered with EIB Global, the development arm of the European Investment Bank (EIB), to implement a €21 million grant aimed at reducing carbon emissions and enhancing recycling efforts within the country. This grant, financed by the European Union, will serve as a significant tool in Egypt’s initiative to decarbonize its economy and promote environmental sustainability.
Most of the grant—€20 million—will support investments that focus on cutting carbon emissions and improving recycling processes across various industrial sectors in Egypt. The remaining €1 million will be allocated for the digitalization of the Egyptian Environmental Affairs Agency, which will improve its monitoring and enforcement capabilities related to environmental regulations.
Dr. Rania A. Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, emphasized the importance of this agreement in accelerating Egypt’s green transformation. She noted that this collaboration with EIB Global and the European Union not only aligns with Egypt’s national climate objectives but also fosters public-private partnerships that can drive sustainable industrial practices.
The signing ceremony included notable attendees such as EIB Vice-President Gelsomina Vigliotti and Egyptian Minister of Environment Yasmine Fouad. EIB Vice-President Vigliotti stated that the project aims to steer Egypt’s industrial sector towards a green economy by decarbonizing production processes and endorsing renewable energy and circular economy practices.
In addition to the grant, EIB Global is contributing a €135 million loan to the Egyptian Green Sustainable Industry program. Together, this financing is projected to unlock €271 million in climate-focused investments, facilitating Egypt’s transition to a low-carbon economy.
Stefano Sannino, Director-General of the European Commission’s Directorate-General for the Middle East, North Africa, and Gulf, announced the launch of the EU-Egypt Investment Guarantee for Development Mechanism, which is designed to accelerate substantial investment projects in Egypt. This initiative is expected to mobilize up to €5 billion in public and private investments between 2024 and 2027, reinforcing the EU’s role as a strategic investor in Egypt’s sustainable growth.
Overall, this collaboration marks a pivotal move towards establishing sustainable practices in Egypt’s economy, laying the groundwork for future investments in renewable energy and environmental sustainability.
