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Egypt Explores $1.2 Billion Climate Funding With IMF

May 19, 2024
Image Credit: Egypt’s Ministry of Environment/Facebook

Egypt’s Ministry of Environment and the International Monetary Fund (IMF) met on 18 May to discuss a USD 1.2 billion (EGP 56.1 billion) long-term package to bolster the country’s climate policies and projects.

This potential financing comes in light of the USD 8 bn (EGP 374 billion) expanded facility agreement in March 2024, which allows Egypt to apply for additional funding to combat climate change.

The climate financing package falls under the IMF’s Resilience and Sustainability Facility, designed to offer extended funding to nations tackling long-term challenges such as climate change.

The meeting, reported in a ministerial press release published on social media, included Minister of Environment Yasmine Fouad, officials from other ministries and entities, and IMF Mission Chief for Egypt Ivanna Vladkova Hollar.

“[Fouad] welcomed the IMF delegation, emphasising that this session continues previous bilateral meetings with the IMF and national discussions among Egyptian government entities,” the press release reads. “Previous discussions clarified the necessary reforms in climate policies,” the minister said.

The Egyptian government introduced several climate initiatives in the past decade, highlighted by its role in hosting COP27 in Sharm El-Sheikh in 2022.

The government also launched the National Climate Strategy 2050 – aiming to cut carbon emissions and boost the share of renewable energy to 42 percent by 2030 among other ambitious green initiatives.

Since COP27, the Egyptian government has signed numerous agreements with regional and international companies to expand renewable energy capacity.

In March 2024, a consortium of investors inked USD 40 billion (EGP 1.8 trillion) worth of projects in renewable energy.

Despite growing efforts, Fouad emphasised the government’s intention to collaborate with the IMF to build on existing national climate action – taking inspiration from countries with experienced cases like Morocco and Bangladesh.

She outlined the government’s commitment to developing strategies to boost Egypt’s resilience and sustainability, identify financing mechanisms for green growth, and enhance green investments in public and private sectors.

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