Egypt is considering offering green bonds before the COP27 climate summit - Energy

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Egypt plans to issue green bonds before the COP27 climate summit, which will be hosted by Sharm El-Sheikh next November, as part of the government’s efforts and measures to achieve carbon neutrality and reduce emissions.

The new offering of green bonds follows the success of an initial offering during the year 2020, which received a huge turnout of $750 million, followed by an offering of $100 million to the private sector last year.

Egypt to offer green bonds ahead of COP27 climate summit
Egypt prepares to issue green bonds

sustainable financing

In this context, Finance Minister Mohamed Maait confirmed that Egypt has become on the map of sustainable financing for the green economy, by issuing the first sovereign green bond offering in the Middle East and North Africa, with a value of 750 million dollars in September 2020, which contributed to attracting New investors who prefer green investment in Europe, the United States, East Asia and the Middle East.

He said during his speech at the international conference on “Alternative Financing Opportunities in Egypt: Towards Sustainable Financing for Development” – held in cooperation between the Ministries of Finance, Planning and Economic Development, and the Macroeconomic Reform and Stability Project funded by the US Agency for International Development – that his country is considering offering green bonds for sustainable development. To fund initiatives with a social dimension.

Egypt to offer green bonds ahead of COP27 climate summit
Part of the conference Photo from the Egyptian Cabinet

Climate Summit COP 27

The Minister of Finance pointed out that Egypt’s hosting of the COP27 climate summit confirms the state’s keenness on sustaining clean investment and the transition to a green economy through environmentally friendly projects.

He stressed that “alternative financing” has become more important in light of the intertwining of global challenges that have increased in severity with the negative effects of the Ukrainian crisis, on economies that have been exhausted by the Corona pandemic, and the subsequent inflationary wave that some countries have not witnessed for more than 40 years.

He pointed out that Egypt is continuing to maximize efforts to diversify sources and financing tools to reduce the cost of development investments, especially in light of the current global crisis, with the rise in the cost of financing and the increasing uncertainty among investors.

Egypt to offer green bonds ahead of COP27 climate summit
Part of the conference – photo from the Egyptian Cabinet

green project financing

Egypt plans to raise the percentage of green projects to 50% of the total government projects by the fiscal year 2024/2025, up from 30% targeted in the current year 2021/2022.

It also aims to expand the issuance of green bonds, to find financing for environmentally friendly projects, in a number of fields, most notably energy, waste management and water, supporting farmers in the delta to switch to more sustainable irrigation systems to conserve water, and supporting public transport projects to reduce emissions, such as the third line of the metro. Tunnels and the monowheel project.

Egyptian Green Bonds - Green Cities

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