{"id":562036,"date":"2021-05-04T03:36:15","date_gmt":"2021-05-04T03:36:15","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/what-more-could-egypt-be-doing-to-tackle-air-pollution\/"},"modified":"2021-05-04T03:36:15","modified_gmt":"2021-05-04T03:36:15","slug":"what-more-could-egypt-be-doing-to-tackle-air-pollution","status":"publish","type":"goinggreen","link":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/what-more-could-egypt-be-doing-to-tackle-air-pollution\/","title":{"rendered":"What more could Egypt be doing to tackle air pollution?"},"content":{"rendered":"

<\/a> What more could Egypt be doing to tackle carbon emissions?<\/strong> Air pollution costs Egypt an estimated<\/a> EGP 47 bn a year, according to the World Bank. To tackle this, multiple government-led programs are targeting carbon emissions reduction<\/a>, with development finance and private sector support. But some analysts and business owners say more measures are needed, and are recommending a more ambitious renewables strategy, financial incentives to boost renewables, capping emissions of our most polluting industries, and using cleaner carbon capture technology.<\/p>\n

Egypt\u2019s renewables strategy seems ambitious \u2014 but some experts want to aim higher:<\/strong> Egypt remains reliant<\/a> on hydrocarbon-based fossil fuels. Renewables comprise an estimated<\/a> 10% of the energy mix, and the government aims to increase this to 42% by 2035. In its Egypt Renewable Energy Outlook 2018 (pdf)<\/a>, the International Renewable Energy Agency (IRENA) says it\u2019s technically and economically feasible for Egypt to aim for 53% of power generation from renewable sources by 2030. <\/strong><\/p>\n

Targets for renewables \u2014 and coal \u2014 are outdated, say some studies.<\/strong> The government set its 42% renewables target in 2016, and introduced heavyweight polluter coal<\/a> to reduce imported gas reliance following 2011-2013 electricity shortages<\/a>, the IRENA report notes. Under this scenario, coal is set to comprise 16% of the mix by 2035, while under Egypt\u2019s 2030 Vision (pdf)<\/a>, it is due to comprise 29% by 2030. But today we have surplus electricity, with our generation capacity<\/a> of 58 GW exceeding our peak demand of 30-32 GW. This degree of fossil fuel-reliance could see Egypt\u2019s CO2 emissions exceed 300% of current emissions within 10 years, the Euro-Mediterranean Journal for Environmental Integration study notes<\/a>.<\/p>\n

IRENA\u2019s recommendations: Cut coal, and update the energy strategy every two years.<\/strong> Introducing coal into the energy mix hinders emission reduction efforts, the IRENA report notes. Egypt should update its energy strategy every two years, given rapid developments in tech and cost effectiveness of renewables.<\/p>\n

Accelerating the renewables transition requires more financial support: <\/strong>Renewables are very cost-competitive<\/a>, and some measures are already in place to help businesses cut costs. Cairo Solar<\/a> currently pays no tariffs on solar panels, and low tariffs on inverters, says Managing Director Hatem Tawfik. Custom duties for renewable energy production or generation equipment can be as low as 2%, energy and environment analyst and Solutions Fellow at the Center for Climate and Energy Solutions<\/a>Mahmoud Abouelnaga tells Enterprise. And phasing out<\/a> electricity subsidies will be key to attracting foreign investors, he adds.<\/p>\n

But a raft of other incentives could encourage more activity:<\/strong> Subsidized financing for solar companies of all sizes would boost the sector, says Tawfik. He wants VAT for solar companies reduced to 5% (down from the standard 14%) as well as more financing \u2014 bank loans and grants like the Egypt PV fund<\/a> and the EBRD\u2019s GEFF mechanism<\/a> \u2014 for clients installing solar equipment.<\/p>\n

Other recommendations? Stop treating small and mid-size projects as high-risk: <\/strong>Larger renewables projects often benefit from low interest rate loans, while small and mid-size projects are still seen as high-risk, says Abouelnaga, \u201cthough solar and wind costs have decreased remarkably in the last decade.\u201d Smaller projects should be able to collectively apply for low interest rate financing, he suggests. \u201cIf there\u2019s a 200 MW project financing cut-off, the 200 MW could come from several smaller projects grouped together, rather than one large 200 MW project.\u201d<\/p>\n

And keep building electricity transmission capacity: <\/strong>Conversations with DFIs like the World Bank should focus on building transmission capacity, Abouelnaga believes. \u201cIt\u2019s a key question: what are we going to do with all our generation capacity if we don\u2019t have transmission capacity? That\u2019s where investments need to be scaled.\u201d Establishing transparent and cost-reflective transmission charges is needed, says Heike Harmgart, EBRD Managing Director for the Southern and Eastern Mediterranean. \u201cThe ministry is making big strides on this. I expect in 2021 and 2022 we\u2019ll see many more private-to-private agreements. We signed one of the first with Taqa Arabia<\/a> last year. I think more are coming,\u201d Harmgart said.<\/p>\n

Meanwhile, heavily polluting industries need emission caps,<\/strong> says Abouelnaga. \u201cIndustries needing stricter enforcement \u2014 like cement and steel \u2014 will only limit their emissions through environmental policy restrictions.\u201d Energy, agriculture, manufacturing, and waste handling and management are Egypt\u2019s biggest emissions culprits<\/a>.<\/p>\n

What could help? Industrial clusters: <\/strong>Creating industrial clusters away from cities could help reduce emissions, with facilities sharing infrastructure, Abouelnaga says. \u201cLower-priced land or energy subsidies could be incentives. If the clusters were close to energy power plants, they\u2019d feed into each other.\u201d<\/p>\n

And if slashing emissions doesn\u2019t work? Industry can support renewables through carbon credits: <\/strong>Industrial producers can reduce their carbon footprint by donating to mega-renewable projects like Zaafarana<\/a>, Egypt Green Building Council<\/a> board member and sustainability consultant Hoda Ibrahim tells Enterprise. \u201cZaafarana is registered on the IRX<\/a>, and factories can pay to offset the amount of electricity they consume annually.\u201d<\/p>\n

Would emissions caps for transport be helpful? Probably not yet:<\/strong> Egypt is investing heavily in urban transport networks but could still do a lot more in the transport sector to reduce carbon emissions, says Harmgart. And EBRD-supported pilots on electro-mobility and transitioning to lower carbon public and private transport are important steps in this area, she adds. \u201cBut I\u2019m not sure an emissions cap on transport is currently the most efficient way to reduce emissions in Egypt. In some areas, a lot of work would be needed.\u201d<\/p>\n

But pinning all our hopes on a renewables transition or heavy polluters curbing emissions is unrealistic,<\/strong> Abouelnaga says. \u201cWhen it comes to hard-to-decarbonize<\/a> sectors, there\u2019s a limit to what you can alter. You can\u2019t change the chemical process for producing cement. Even if factories use clean energy, in producing cement, they produce CO2.\u201d Significantly shifting away from fossil fuels might not happen soon, he adds. \u201cWe\u2019re building natural gas combined cycle power plants<\/a>, with a lifespan of at least 30 years. In terms of investment, we don\u2019t want to wind that down.\u201d<\/p>\n

Carbon capture could be a solution:<\/strong> Implementing carbon capture technology<\/a> is straightforward, and CO2 captured could be used for other industrial processes, including enhanced oil recovery<\/a> \u2014 pumping CO2 down an oil or gas well to increase pressure \u2014 or manufacturing beverages, says Abouelnaga. Industrial facilities can be retrofitted with carbon capture devices as a relatively cost-effective way to keep fossil fuels in the energy mix, with minimal CO2 emissions, he adds.<\/p>\n

But the tech isn\u2019t really on Egypt\u2019s radar yet:<\/strong> The UAE<\/a>, UK and Norway<\/a> are all making strides in carbon capture technology, says Abouelnaga. \u201cThe tech is getting a lot of attention. But it doesn\u2019t seem to be in Egypt\u2019s strategy at all.\u201d Carbon capture is still an expensive decarbonization solution in Egypt, notes Harmgart. \u201cThere are lots of cost-competitive technologies that have become mainstream and accessible, like solar and wind. Others, like green hydrogen and solar-powered desalination, have tremendous potential. But we need to be open about all decarbonization solutions.\u201d<\/p>\n

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