What the government has in store for the green economy in the upcoming fiscal year: Last week, Planning Minister Hala El Said laid out the government’s sustainable development plan for FY 2023-24 in an address to the House of Representatives, while Finance Minister Mohamed Maait presented the draft state budget for the upcoming fiscal year. The sustainable development plan — which the ministry issues every year to work towards Egypt Vision 2030 — covers planned government spending on several key sectors, including education, infrastructure, the green economy, and manufacturing.

ICYMI- We’ve already recapped the spending and development plans for transformativeindustries and education.

The government is planning to earmark 30-40% of its total investments in FY 2023-24 for environmental sustainability projects that contribute to slashing emissions, according to a Planning Ministry statement. That figure is set to rise to 50% by the following fiscal year, the statement said.

REMEMBER- We’ve recently set more ambitious targets for ourselves when it comes to the green transition: Last year, in the lead-up to COP27, the government submitted its updated nationally determined contributions (NDCs) committing to new emissions targets by 2030. These targets include fresh commitments to reduce emissions in the energy and transport sectors — two of the most polluting industries in Egypt — and will also look to scale back emissions from transport, Environment Minister Yasmine Fouad said at the time. The goals also include slashing emissions from the energy sector by ramping up its 2030 renewable energy targets. Egypt is looking to have renewable energy account for 40% of our energy mix by 2030 and 42% by 2035.

The Finance Ministry is also putting in place a “comprehensive set of measures” to push the green transition forward, including developing its tax system to encourage a transition to green projects, expanding its use of green financing tools such as green and sustainability bonds, and proposing several incentives and initiatives to support the green economy and spur financing for green and renewable energy projects, according to the proposed state budget (pdf).

REFRESHER- Maait had said last September that the government is looking at the possibility of issuing a green eurobond soon, depending on market conditions. Earlier that year, the ministry signaled that it is looking to take to the green bond market for a second time with another USD 750 mn issuance, matching the 2020 issuance that saw Egypt debut sovereign green bonds in the MENA region. Private sector players could also be preparing to sell up to USD 200 mn in green bonds, the Planning Ministry said earlier this month. CIB had launched the country’s debut corporate green bond issuance in 2020.

Also coming up next fiscal year as part of the sustainable development strategy: The government plans to complete the second phase of Egypt’s interactive climate change map, which maps the ecological footprint of climate change on the country. The map also details the government’s efforts to address environmental issues through national green projects, such as EV charging stations and hotels that fall under the “Green Star” program. The sustainable development strategy also includes several projects geared towards a greener economy, including producing electric vehicles and green hydrogen, and manufacturing solar panels, the Planning Ministry statement says, without providing specifics on what will be done on these fronts.

There are awareness programs coming our way: The strategy also entails launching a handful of awareness programs aiming to improve environmental literacy, in addition to pushing forward with a project to plant 100 mn trees.

Your top green economy stories for the week:

  • Wind farms attract investor interest: Saudi Arabia’s ACWA Power, the UAE’s Alcazar Energy and Infinity are reportedly among seven companies interested in acquiring Egypt’s two largest wind farms.
  • Scatec on board for green methanol plant: Norwegian renewables producer Scatec and Alexandria National Refining & Petrochemicals Company have signed an agreement to work on a USD 450 mn green methanol plant in Damietta.
  • EU funding for sustainable consumption:The Environment Ministry launched thesecond phaseof the EU-funded SwitchMed initiative, which aims to promote sustainable consumption and the circular economy.
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