{"id":657651,"date":"2024-12-24T00:00:00","date_gmt":"2024-12-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/the-green-economy-in-2024-a-rundown-of-investments-initiatives-and-challenges-that-defined-the-year\/"},"modified":"2024-12-24T00:00:00","modified_gmt":"2024-12-24T00:00:00","slug":"the-green-economy-in-2024-a-rundown-of-investments-initiatives-and-challenges-that-defined-the-year","status":"publish","type":"goinggreen","link":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/the-green-economy-in-2024-a-rundown-of-investments-initiatives-and-challenges-that-defined-the-year\/","title":{"rendered":"The green economy in 2024: A rundown of investments, initiatives, and challenges that defined the year"},"content":{"rendered":"

Continued rolling blackouts, gas shortages reinforce the need for a green transition: <\/strong>This year offered yet another argument for the swift implementation of our green energy targets, as soaring heat waves, a continued dip in domestic gas production, and rising summer energy demand caused an increase in costly gas imports and left the country dealing with rolling blackouts throughout the summer months (and beyond) for the second year in a row. <\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

The new Madbouly government brought a new green agenda along with it:<\/strong> The new government announced shortly after its formation in July<\/a> that it plans to shepherd an increase in renewables to around 18.6% of Egypt\u2019s total energy mix by FY 2026-27, up from 11.5% last year. The government\u2019s long-term goals are even more ambitious, with the state hoping to bring renewables up to 42% of the country\u2019s total energy mix by 2030. <\/p>\n

On the electricity front: <\/strong>The new cabinet also announced plans to steadily ramp up electricity production from 229 terawatt hours (TWh) in the current fiscal year to 242 TWh in FY 2026-27 and 260 TWh by 2030. It also wants to cut down on the percentage of energy wasted from 19.4% during the last fiscal year to 12% by 2030 and reduce energy consumption by 18% by 2035 through developing the electricity grid, promoting the use of energy-saving appliances in households, and putting an end to electricity theft<\/a>. <\/p>\n

The new government also detailed a long list of environment-related goals for the coming <\/strong>three years<\/strong>, from reducing pollution to finding a way to tackle rising sea levels. Most notably, the cabinet wants to set up more networks to monitor air and noise pollution, boost the efficiency of solid municipal waste gathering to 85% by FY 2026-27 and 95% by 2030, and continue carrying out its plan to manage the country\u2019s natural reserves ahead of offering them to investors. It also plans to reduce water waste and roll out an investment plan to ensure the agriculture sector is not impacted by climate change.<\/p>\n

To fund it all:<\/strong> The cabinet plans to raise the portion of green investments to 60% of total public investments during FY 2026-27, up from 40% during the last fiscal year.<\/p>\n

Preparations for the EU\u2019s impending climate regulations was among the biggest talking <\/strong>points of the year: <\/strong>The EU\u2019S Carbon Border Adjustment Mechanism (CBAM)<\/a>, a new set of climate standards set to go into full effect starting in 2026, drove the conversation across various sectors in 2024. Both the government and the private sector spent much of the year looking for ways to adapt to \u2014 and potentially benefit from \u2014 the new regulations, which will impose a carbon emissions tax on goods that are imported into the EU.<\/p>\n

The incoming regulations have accelerated the government\u2019s localization push:<\/strong> The Madbouly government announced in October<\/a> that it would work to localize the manufacture of 12 products selected by the ministries of housing and industry, including electric motors, generators, valves, pumps, water filtration devices, electric tools, solar cells, electrical control and power distribution panels, and elevators. The move was justified as part of a plan to help Egyptian industry adjust to our largest trading partner\u2019s new standards.<\/p>\n

The Madbouly cabinet has also been working on <\/strong>Egypt\u2019s first-ever carbon pricing draft <\/strong>law<\/strong> \u2014 and is said to be in the final stages<\/a> of drafting the new legislation. The law was set to be discussed with key players in the highest carbon-emitting industries before being submitted to the House of Representatives by the end of this year.<\/p>\n

Egypt also launched Africa\u2019s <\/strong>first carbon market<\/a><\/strong> back in August<\/strong>, which Financial Regulatory Authority chairman Mohamed Farid noted<\/a> made Egypt \u201cone of the very few [countries] that decided to put in place a full-fledged regulatory framework\u201d for the market. The carbon market allows companies to issue and trade voluntary carbon certificates in Egypt and Africa, which can be bought by other companies wanting to offset their emissions.<\/p>\n

The agricultural sector was among the biggest beneficiaries:<\/strong> Out of the 16 projects currently registered with the FRA with carbon credits eligible for trading, 15 of them are agricultural projects \u2014 \u201cwhere farms have invested in swapping out their diesel-powered machinery to run on solar panels\u201d and introduced other sustainable practices, Farid said. The carbon market could also aid the transition from conventional to organic farming while also helping offset 14% of Egypt\u2019s overall emissions, SEKEM CEO Helmy Abouleish told us<\/a>.<\/p>\n

Gov\u2019t efforts to promote EV investment and localization have also been bearing fruit:<\/strong> Throughout 2024 the government has been making strides toward its goal of increasing<\/a> the market share of private EVs to 50% by 2040. Among the developments on this front were Ezz Elarab Group\u2019s launch<\/a> of a new Volvo EV announced earlier this month.<\/p>\n

More imported models are on their way:<\/strong> Abou Ghaly Motors will bring in the Subaru Solterra at the end of next year<\/a>, while Alkan Auto is also preparing to launch BAIC subsidiary Arcfox\u2019s EVs to the market in 1Q 2025. Meanwhile, National Automotive Company\u2019s (NATCO) plans to launch distribution<\/a> of Chinese Neta Auto EVs by mid-next year.<\/p>\n

The gov\u2019t also launched the <\/strong>National Low-Carbon Hydrogen Strategy<\/a><\/strong>, which focuses on scaling up<\/a> the production of blue hydrogen \u2014 hydrogen whose emissions are offset by carbon capture \u2014 and green hydrogen, which is produced via a zero-carbon process called electrolysis. <\/p>\n

The strategy provides two possible scenarios for scaling up the two energy sources:<\/strong> In its less ambitious \u201ccentral\u201d scenario, the country would produce 1.5 mn tons per annum of green hydrogen by 2030 with 1.4 mn tons pegged for export, and 5.8 mn tons per annum by 2040 with 3.75 mn tonnes pegged for export. In the more ambitious \u201cgreen\u201d scenario, the country would produce 3.2 mn metric tons of green hydrogen annually by 2030, with 2.8 mn metric tons marked for export, and 9.2 mn metric tons by 2040, with 5.6 mn metric tons pegged for export.<\/p>\n

On the SDG front, our progress was a mixed bag in 2024:<\/strong> While Egypt has made progress<\/a> on several Sustainable Development Goals (SDGs), significant work remains to reach the country\u2019s 2030 targets. Our SDG achievement ranking saw a slight downtick this year, with modest improvements in some areas and setbacks in others. The country\u2019s overall score came at 69.2 in 2024, down slightly from 69.6 last year, placing it in 83rd place out of the 167 countries researched in the report. However, this ranking places Egypt above the average regional score of 65.6 and ahead of all MENA countries except Tunisia, Morocco, the UAE, and Algeria.<\/p>\n

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Your top green economy stories for the week:<\/strong><\/p>\n