Green Climate Fund to fund 3 major greening projects in Egypt and globally
The projects that will receive GCF funding include initiatives focused on greening financial systems, the Smart Climate-Resilient Agriculture Investment Fund, and the Facility for Expanding Climate-Resilient Water Infrastructure, explained a statement issued by the Egyptian Ministry of Environment said on Saturday.
The GCF, established in 2010 under the United Nations Framework Convention on Climate Change, is the world’s largest climate fund.
According to the statement, the decision to fund these projects was made during the 40th board meeting when held in Incheon, South Korea from 21 to 24 October.
The GCF has also authorized access to climate financing through the Facility for Expanding Climate-Resilient Water Infrastructure.
The statement noted that the Climate-Resilient Water Infrastructure project will provide access to funding packages of grants and concessional development loans to be invested in 14 countries, including Egypt, amounting to $1.262 billion out of which the GCF will contribute $258 million.
The facility aims to tackle water scarcity challenges and contribute to climate change adaptation in Egypt by developing more resilient water infrastructure using advanced technologies and sustainable practices.
The statement highlighted that the greening financial systems project will receive up to $1.295 billion out of which the GCF will contribute $200 million to 14 Asian and African countries, including Egypt.
Greening financial systems is a program that seeks to bring about a systemic transformation of the financial sector by offering concessional financing for climate change mitigation and adaptation projects targeting small and medium enterprises, housing associations, municipalities, and public utilities.
Furthermore, the GCF also approved the Smart Climate-Resilient Agriculture Investment Fund project for implementation in 10 African countries, including Egypt, with a total funding package of $130 million, according to the statement.
The project aims to provide small farmers with a combination of climate-smart, flexible solutions, including access to improved production inputs such as climate-resistant seeds, as well as access to financing that will allow farmers to enhance to their agricultural lands.
Egypt targets
Egypt has fulfilled 50 percent of the criteria established by the Arab National Platforms for assessing the Sustainable Development Goals (SDGs) as the country transitions toward a green economy under its Vision 2030.
In 2022, Egypt obtained around $300 million from the GCF, aimed at helping developing nations meet their climate change mitigation and adaptation objectives.
In August, the Egyptian cabinet unveiled a national low-carbon hydrogen strategy as the country targets reducing carbon emissions by 2040.