Egypt shares its first BTR: Egypt has submitted its First Biennial Transparency Report (BTR1)(pdf) to the UN, highlighting its progress in implementing its nationally determined contributions to cut down on emissions during the period ending in 2022. The report “marks a critical milestone in the nation’s journey toward effective climate governance, showcasing its commitment to transparency and climate action.”

TL;DR: “This report outlines our progress, ambitious goals, and the strategies we are implementing to address climate change at national, regional, and global levels,” Environment Minister Yasmine Fouad wrote in the report’s foreword. The report “provides a comprehensive overview of Egypt’s climate initiatives, including an updated Greenhouse Gas (GHG) Inventory, progress toward achieving our Nationally Determined Contribution (NDC), mitigation strategies, and Adaptation Communication. Furthermore, it details the support we have received in this critical endeavor.”

First things first, what is a BTR? BTRs outline a country’s national inventory reports, progress made towards achieving nationally determined contributions (NDC), policy implementation, climate change effects, financial status, technology advancement, and areas of improvement. Parties to the Paris Agreement are required to submit BTRs every two years under the enhanced transparency framework.

Right on time: Egypt submitted its first BTR on 30 December 2024, one day before thedeadline set by the United Nations Framework Convention on Climate Change (UNFCCC).

The context: Egypt’s population now stands at almost 106 mn — and is expected to reach 160 mn by 2050 — placing burdens on food security, water security, and economic development. Although the country has made progress on the macro front, the Covid-19 pandemic hindered recent progress. At the same time, significant macroeconomic disruptions — including the float of the EGP — have caused economic shocks.

The stats: CO2 accounts for the largest share of emissions, making up 75.9% of total emissions among gases due to being closely linked to energy production and industrial manufacturing. Following CO2, the gases that account the biggest shares of emissions are methane (13.7%) and nitrous oxide (7.4%).

We have a plan to slash carbon emissions: The Oil Ministry is currently following a plan thatit says lowers emissions and offers economic returns. The ministry has implemented around 340 projects aimed at optimizing energy use, resulting in annual savings of USD 135.5 mn and reducing 1.2 mn tons of CO2 emissions a year. Part of the initiative included detailed energy audits in five key energy companies and the training of some 250 engineers.

Egypt is especially vulnerable to the effects of climate change: Egypt has suffered extreme temperatures over the past 30 years, while also seeing a 22% decline in annual rainfall. Temperatures are set to rise by 2.1°C to 5.7°C by the end of the century under a high emission scenario. The Nile Delta is a region that is among the world’s most vulnerable to climate change due to its dependence on the Nile for agriculture, industry, fisheries, and energy.

The country has set ambitious goals: Egypt plans to reduce the electricity sector’s greenhouse gases emissions by 37% by 2030. The Madbouly government also has plans to slash emissions in the oil and gas sector by 65% and transport sector-related emissions by 7% over the same time period.

How can we achieve this? The government is looking to attract USD 34 bn of renewable investments through 2026-2027, a government source told EnterpriseAM last year. The government wants to push its green investments to 75% of its total investment spending by 2030 and have its green economy contribute no less than 5% to its GDP.

It won’t come without challenges: “The expansion and modernization of Egypt’s power grid is crucial for integrating renewable energy sources. The government is investing in the development of a smart grid that can accommodate the growing share of solar and wind energy … However, financial constraints are impeding the expansion of the power grid, thereby limiting the integration of renewable energy at the planned capacities,” the report reads.

The progress made so far: Egypt reduced emissions by 34.3% in 2022 compared to the business as usual (BAU) scenario. In the oil and gas sector, emissions were reduced by 57% compared to BAU levels and the transport sector surpassed its goal of slashing emissions 7% by 2030, reducing them 16.9% in 2022. Additionally, the Oil Ministry outperformed its energy efficiency goals, cutting energy consumption by 5.6% between the years 2015 and 2022 against a target of 5% thanks to implementing energy-saving measures in petroleum companies.

How can we keep the ball rolling? “Egypt requires adaptation measures such as climate-resilient infrastructure, public health campaigns, and energy-efficient designs to mitigate the impacts of climate change on society and the economy,” the report reads, highlighting the need for stronger cooperation between government bodies, local communities, NGOs, and the private sector to help develop effective solutions.

To help pay for it all: The nation is looking to secure financial support across various sectors to help it implement climate mitigation and adaptation strategies. The report points to barriers hindering efforts to secure international finance including “currency instability, shortage in

foreign currency, high lending rates and inflation.”

What’s next? The report will undergo a technical expert review, which will “help demonstrate action, identify areas of improvement and capacity-building needs, attract targeted support, and ultimately build trust.” The UN will also undertake a facilitative multilateral consideration of progress to “open dialogue on climate actions, successes, and challenges.”

Your top green economy stories for the week:

  • Efforts to recycle agricultural waste: The Agricultural Research Center inked a cooperation protocol with Abu Zaabal Fertilizers and Chemical Company to produce affordable peat moss from agricultural waste. (Statement)
  • Oriental Weavers has inaugurated new expansions at its industrial wastewater treatment facility in its spinning factory. (Statement)
  • Ras Ghareb wind farm begins operations: A consortium including Orascom Construction, Engie, Toyota Tsusho, and Eurus Energy has connected 306 MW of their 650 MW wind farm in Ras Ghareb to Egypt’s national grid.
Tags: