{"id":74802,"date":"2022-11-15T02:17:51","date_gmt":"2022-11-15T02:17:51","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2022\/11\/15\/climate-change-poses-a-risk-to-egypts-long-term-growth-says-world-bank-report\/"},"modified":"2022-11-15T02:17:51","modified_gmt":"2022-11-15T02:17:51","slug":"climate-change-poses-a-risk-to-egypts-long-term-growth-says-world-bank-report","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2022\/11\/15\/climate-change-poses-a-risk-to-egypts-long-term-growth-says-world-bank-report\/","title":{"rendered":"Climate change poses a risk to Egypt\u2019s long-term growth, says World Bank report"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-05\"><\/a> <strong>Climate change is set to cost Egypt some 2-6% of its GDP by 2060, further<\/strong> <strong>exacerbating the country\u2019s development challenges<\/strong>, according to a <a href=\"https:\/\/ent.news\/2022\/11\/3074.pdf\">report (pdf)<\/a> from the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). This figure is based on the impact climate change is expected to have on \u201cwater resources, tourism revenue, coastal resources, agriculture and human health,\u201d according to the report.<\/p>\n<p><strong>Egypt\u2019s biggest challenges?<\/strong> Impending water scarcity, a rapidly-increasing population and the current strong relationship between economic growth and rising emissions are all areas of particular concern, the report notes.<\/p>\n<p><strong>Sobering stats show the road ahead without reform:<\/strong> Without increasing agricultural water efficiency, \u201cwater scarcity will increase <a href=\"https:\/\/www.cropin.com\/blogs\/virtual-water-trade-in-the-context-of-agricultural-production#:~:text=Virtual%20water%20trade%20exactly%20means,water%20inevitably%20for%20their%20production.\">net virtual water imports<\/a> by 15% by 2030, reaching 45% in drought periods,\u201d the report says. And though Egypt is on track to meet emissions-reduction targets in its Nationally Determined Contribution (NDC) <a href=\"https:\/\/enterprise.press\/stories\/2022\/07\/26\/new-details-on-egypts-updated-emissions-targets-76549\/\">commitments<\/a> by 2030, projected annual power sector emissions are later expected to grow \u2014 reaching 121 metric tons (MT) of CO2 equivalent in 2050, up from a current estimated 78 MT, unless policies change.<\/p>\n<p><strong>An alternative vision: Low-carbon growth and increased global competitiveness. <\/strong>The report identifies key short- and medium-term policies and investments to mitigate climate change impact and improve resource allocation efficiency and global competitiveness.<\/p>\n<p><strong>Egypt\u2019s taken important policy steps to address climate change\u2026 <\/strong>The country\u2019s overall climate change policy has shifted to a long-term strategy linked to its aspirations to be a regional green leader, the report notes. Updating its NDCs, issuing green bonds, and launching its National Climate Change Strategy 2050 (<a href=\"https:\/\/enterprise.press\/stories\/2022\/05\/19\/this-evening-were-waiting-on-the-cbes-decision-on-rates-environment-ministry-to-go-in-depth-on-egypts-national-climate-strategy-for-2050-71428\/\">NCCS<\/a>) and Nexus of Water, Food and Energy (<a href=\"https:\/\/enterprise.news\/climate\/en\/news\/story\/0f89aaa1-522d-4e62-bf5f-f6239fcb84a3\">NWFE<\/a>) Program were all key developments, it notes.<\/p>\n<p><strong>\u2026But lags on implementation: <\/strong>Climate action has so far been fragmented, regulation needs to be more comprehensive and applicable \u2014 rather than a series of decrees \u2014 and governance, institutional and human capacity needs to be built, the report says.<\/p>\n<p><strong>Key action recommendations outlined in the report:<\/strong><\/p>\n<p><strong>1- Build resilience to prepare for future uncertainty \u2014 especially stemming from water<\/strong> <strong>shortages: <\/strong>Climate change resilience needs to be built through targeted strategies, focusing on coastal areas, ports and logistics, cities and infrastructure, and transport. Overall risk can be managed through better information sharing, early warning systems, population behavior change, and resource allocation. In rural areas, investing in storage infrastructure for strategic grains will be essential. Drought management and other information systems should be made use of. Investment and innovation in \u201ckey adaptation sectors\u201d \u2014 water, agriculture, urban development and environmental management \u2014 needs to be streamlined. All of this needs to be underpinned by effective policy.<\/p>\n<p><strong>2- Move to a \u201clow-carbon trajectory\u201d to enhance export competitiveness and avoid<\/strong> <strong>carbon-intensive lock-in\u2026 <\/strong>Egypt should move full steam ahead towards decarbonization, particularly in energy, transport and industry. Renewable energy should be scaled up and integrated further into the national grid, which could \u201creduce exposure to external price shocks, shift domestic use of surplus gas production to value chains with higher value added, and potentially expand exports.\u201d Egypt\u2019s \u201csignificant\u201d potential in blue hydrogen, and carbon capture utilization and storage (CCUS) should also be leveraged.<\/p>\n<p><strong>\u2026through targeted investment and regulatory reform:<\/strong> Transitioning to a low-carbon economy requires more private investment, underpinned by more scope for competition in the energy sector and regulatory reforms, such as setting decarbonization and carbon-intensity targets, measurement standards, and reporting requirements. It would also require better strategic use of public funds.<\/p>\n<p><strong>3- Reduce energy inefficiency in electricity and industry: <\/strong>Egypt needs to remove or reduce the \u201csizable explicit subsidies\u201d in the electricity sector (standing at some USD 8 bn) and diesel for transport (around USD 4 bn). \u201cThis USD 12 bn total (about 3% of GDP) would alone finance most of the annualized adaptation investment needs for cities,\u201d the report says. Egypt should also remove non-tariff barriers \u2014 including price controls and technical barriers to trade \u2014 which affect renewable energy, waste management and recycling product imports.<\/p>\n<p><strong>4- Bring the private sector on board, strengthen green finance, and use policy<\/strong> <strong>instruments to reduce investment needs: <\/strong>Egypt could boost green public investment by ensuring better coordination between public sector bodies through public-private partnerships, and using more innovative green financial instruments. More private investment could be spurred by \u201cleveling the playing field for private sector participation\u201d and ensuring more transparency in emissions reporting. Various policy instruments should be used to help reduce investment needs, including carbon pricing, regulation and taxation. And financing sources \u2014 including taxes, debts and reprioritization \u2014 should be balanced.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Climate change is set to cost Egypt some 2-6% of its GDP by 2060, further exacerbating the country\u2019s development challenges, according to a report (pdf) from the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). This figure is based on the impact climate change is expected to have on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":74803,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[59],"tags":[57,659,40,11,58,1189,161],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-74802","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-macro-picture","tag-climate-change","tag-cop27","tag-egypt","tag-enterpriseclimate","tag-macro-picture","tag-nexus-of-water-food-and-energy","tag-world-bank","wpautop","entry"],"acf":{"mongo_id":"e01d1b37-85c4-4440-8195-2774f5f2be6d","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/3\/306.jpg","photo_position":"above","related_issue":[74794],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Climate change poses a risk to Egypt\u2019s long-term growth, says World Bank report - Climate<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/climate\/2022\/11\/15\/climate-change-poses-a-risk-to-egypts-long-term-growth-says-world-bank-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Climate change poses a risk to Egypt\u2019s long-term growth, says World Bank report\" \/>\n<meta property=\"og:description\" content=\"Climate change is set to cost Egypt some 2-6% of its GDP by 2060, further exacerbating the country\u2019s development challenges, according to a report (pdf) from the World Bank, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). 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