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Al-Mashat Participates in ‘Green Banks’ Event in Dubai

Wed 30 Mar 2022 | 05:20 PM
Mohamed Wadie

Minister of international Cooperation Rania Al-Mashat participated in the "Green Banks” event as part of the MENA Climate Week in Dubai, UAE.

According to Al-Mashat, innovative financing tools are a catalyst to ensure that the international community’s commitments made at COP26 are put into action, ahead of COP27 in Egypt.

During an opening speech at the Green Banks Event as Part of MENA Climate Week in Dubai, the Minister of International Cooperation Rania Al-Mashat confirmed the need to strengthen multilateral cooperation to advance several areas within the green transformation, namely mitigation and adaptation projects, expertise, and knowledge sharing in technology, and financing.

Al-Mashat pointed out that Egypt is working to advance its national efforts, as well as to enhance regional and international actions in addressing climate action, and in maintaining ambitious plans through an international framework for innovative climate financing.

She also mentioned the need for international financial institutions to expand climate finance based on pillars related to inclusion and justice, ensuring that the global community, particularly developing and emerging countries, can benefit from climate finance and green investments.

Moreover, the Al-Mashat stressed the importance of the participation of all stakeholders, including women and youth, and the inclusion of the private sector in developing climate action plans and financing environmentally friendly projects through innovative financing solutions, risk reduction tools, and blended financing.

The minister stated that innovative financing tools have become critically important in light of the challenges facing the world, as they play a vital role in achieving sustainable and comprehensive development.

She added that increasing green investments, especially in developing and emerging countries, in addition to soft development financing from development banks will support the global community in achieving the climate goals.

Al-Mashat highlighted the successive measures taken by Egypt to promote green investments, pushing the transition toward a green economy, through decisions to increase green public investments from 15% in the current fiscal year to 30% in the next fiscal year, followed by a 50% increase in 2024/2025.

In 2021, Egypt secured the first green financing from international and regional banks worth $1.5 billion, directed to finance environmentally friendly projects such as water treatment and desalination plants, solid waste management, canal lining, and seawater desalination.

The International Finance Corporation (IFC) provided $100 million in Egypt’s first private sector green bond issuance in 2021.

Moreover, in 2020, Egypt was the first country in the Middle East and North Africa to issue $750 million worth of 5-year sovereign green bonds.

Al-Mashat added that the Government of Egypt is working to launch a set of national initiatives to advance green finance and to put into practice the commitments of COP26, in light of its presidency this year.

The minister referred to Egypt’s experience in mapping the Official Development Assistant (ODA) to the Sustainable Development Goals, which enhanced cooperation efforts between the country and its development partners, in support of the national agenda.

This mapping also showed that the ongoing development cooperation portfolio includes development financing worth $2.85 billion to finance 28 projects in adaptation projects; energy efficiency, agriculture, wastewater management, and water desalination; and $7.83 billion to finance 46 projects in mitigation projects; renewable energy, sustainable cities, and sustainable transport.

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Contributed by Israa Farhan