{"id":672353,"date":"2025-09-23T00:00:00","date_gmt":"2025-09-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/whats-egypt-doing-in-the-run-up-to-cop30\/"},"modified":"2025-09-23T00:00:00","modified_gmt":"2025-09-23T00:00:00","slug":"whats-egypt-doing-in-the-run-up-to-cop30","status":"publish","type":"goinggreen","link":"https:\/\/enterpriseam.com\/egypt\/goinggreens\/whats-egypt-doing-in-the-run-up-to-cop30\/","title":{"rendered":"What\u2019s Egypt doing in the run-up to COP30?"},"content":{"rendered":"

In the run-up to COP30 <\/strong>\u2014 set to be held in Brazil in November \u2014 far fewer <\/strong>nations are stepping forward with new commitments compared to previous years.<\/strong> Only around 30 out of 195 countries<\/a> have submitted their updated Nationally Determined Contributions (NDCs) ahead of the summit, with some of the world\u2019s largest emitters, such as the EU and China, missing their initial deadlines.<\/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

Conflict and trade wars are diverting attention from the fight against climate change<\/strong>, COP30 CEO Ana Toni told The Guardian<\/a>. The US, under Donald Trump\u2019s presidency, also pulled the plug<\/a> on existing climate policy, alongside a withdrawal from the Paris Agreement and a rollback on US financial commitments<\/a> to international climate agreements.<\/p>\n

Egypt\u2019s target to generate 42% of its electricity from renewables by 2030 is at risk without greater international <\/strong>support, promised climate finance, and technology transfer<\/strong>, Prime Minister Mostafa Madbouly warned<\/a> at COP29. He added that developing countries\u2019 climate commitments would remain \u201cink on paper\u201d if financing and support fall short.<\/p>\n

The final figures aren\u2019t out yet, but the country\u2019s renewables share is expected to have <\/strong>reached 13.8%<\/a><\/strong> during the last fiscal year<\/strong>, up from 11.5%<\/a> a year earlier.<\/p>\n

The state <\/strong>aims<\/a><\/strong> to raise renewables\u2019 share in the energy mix to 20% this fiscal <\/strong>year<\/strong>, a government source told us last month. Some 12.7 GW \u2014 3.8 GW of solar and 8.9 GW of wind \u2014 are already in development, we were told.<\/p>\n

On the decarbonization front, Egypt will publish a renewables roadmap through 2030<\/strong>, according to the National Narrative for Economic Development (pdf)<\/a>. The roadmap will detail how it will work to achieve its climate targets, along with emission reduction targets aligned with Egypt\u2019s NDCs, with fines for non-compliance after a two-year grace period.<\/p>\n

The Environment Ministry and the Egyptian-German Joint Committee have recently <\/strong>held<\/a><\/strong> a coordination meeting to push forward climate cooperation<\/strong>, focusing on setting up climate change units across ministries, preparing sectoral action plans, and developing a digital tool to track progress on Egypt\u2019s NDCs.<\/p>\n

On the finance front, the Central Bank of Egypt will order banks to monitor and report their clients\u2019 <\/strong>exposure to the EU\u2019s incoming Carbon Border Adjustment Mechanism (CBAM)<\/strong>, enforce a regulatory framework obliging banks to adopt environmental and social risk management systems, and add two new subprojects to the National Climate Strategy \u2014 one for adaptation and another for mitigation \u2014 with initial feasibility studies aimed at attracting private financing. By end-2025, further reforms and measures will be identified, with adoption targeted by June 2026, the narrative adds.<\/p>\n

Regarding CBAM, a comprehensive study is underway to assess its impact on Egypt's <\/strong>economy and export competitiveness.<\/strong> The analysis will encompass carbon intensity, export sensitivity, and sectoral effects on cement, steel, aluminum, fertilizers, electricity, and hydrogen across various domestic and international policy scenarios. The study is expected to evaluate regulatory frameworks, financial incentives, and carbon pricing tools to mitigate risks while ensuring continued access to export markets.<\/p>\n

Authorities also issued three new decisions to structure the voluntary carbon market.<\/strong> The regulations cover accreditation requirements for verification and validation bodies under the Financial Regulatory Authority, standards for carbon credit registries licensed by the Carbon Regulatory Authority, and procedures for listing and canceling voluntary carbon credits. <\/p>\n

Further amendments introduce a licensing regime for carbon credit rating agencies<\/strong>, setting clear functions and regulatory requirements for their establishment and operation, aiming to add a layer of investor protection.<\/p>\n

The IMF\u2019s Resilience and Sustainability Facility could also add a further USD 274 mn to <\/strong>the total amount disbursed to us this fall<\/strong>, once the fifth and sixth reviews of our USD 8 bn Extended Fund Facility are approved, a source familiar with the talks between the two sides told<\/a> EnterpriseAM last week. The additional climate financing would come from the first two tranches of the roughly USD 1.2 bn program and bring the combined fifth and sixth review disbursals to USD 2.7 bn.<\/p>\n

But to get the extra funds, Egypt will have to make progress on four key climate-focused <\/strong>reforms<\/strong> and eventually complete them by the end of the program. These include accelerating decarbonization, climate risk analysis and disclosure, strengthening financial sector resilience and climate finance, and measuring and disclosing climate impacts of investments.<\/p>\n

The government is also planning to adopt a system for assessing the environmental impacts of <\/strong>major investments<\/strong>, which includes applying climate-related standards to all new projects worth over EGP 500 mn, and expanding the current asset registry pilot to cover the transport, housing, and utilities ministries, focusing on large public assets.<\/p>\n

A regulatory framework was also approved to implement and digitize the national <\/strong>monitoring, reporting, and verification system<\/strong>, aligning with the Paris Agreement\u2019s transparency requirements. The framework covers at least three sectors \u2014 transport, electricity, and oil and gas \u2014 and was reinforced by a cabinet decision that establishes a database to track emissions and progress on the carbon market.<\/p>\n

On water security, the government plans to bring more private investment into water <\/strong>infrastructure<\/strong>, with at least four projects being developed for private sector participation in line with the state ownership policy. At least two competitive PPP tenders are also expected for water infrastructure projects under the Housing and Utilities Ministry.<\/p>\n

A National Water Council will also be established <\/strong>and will oversee the collection and publication of water demand and supply data by sector and region to guide allocation decisions by June 2026. The body will also introduce a formal methodology for cross-sector water allocation to manage competing demands by August 2026.<\/p>\n

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