Minister of Planning, Economic Development and International Cooperation participates in a high-level session on mobilizing capital to support the green transition and climate finance

Within the framework of the World Economic Forum “Davos” meetings…

 

Minister of Planning, Economic Development and International Cooperation participates in a high-level session on mobilizing capital to support the green transition and climate finance

 

H.E. Dr. Rania Al-Mashat: We are working with Multilateral Development Banks to expand blended finance instruments for local and foreign private sector investment

 

The “NWFE” Programme has contributed to increasing the appetite of local and foreign investors for renewable energy projects in Egypt

 

We have been able to leverage debt swap mechanisms to increase climate investments and implement projects across several development sectors

 

Activating investment guarantee mechanisms with the European Union and the World Bank to expand financing mechanisms for the private sector

 

Signing power purchase agreements with the private sector for projects with a capacity of 8.25 GW under the “NWFE” Programme, out of a total target of 10 GW

 

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, participated in a high-level session on the GAEA Initiative launched by the World Economic Forum, focused on mobilizing capital to support transitions in climate, nature, and energy. The session aimed to discuss the mobilization and direction of catalytic capital and accelerating partnerships between the public and private sectors and development institutions to support climate action, nature protection, and accelerate the energy transition.

 

H.E. Dr. Rania Al-Mashat affirmed that climate finance needs in emerging markets are enormous, particularly when aligned with global mitigation and climate adaptation goals, stressing that governments should focus on “blended finance” models to reduce private sector investment risks in green projects.

 

She noted that blended finance mechanisms, including concessional finance, technical assistance, and risk mitigation instruments, contribute to reducing risks, enhancing investment viability, and attracting private capital, which often avoids early-stage or high-risk climate investments.

 

H.E. Dr. Rania Al-Mashat reviewed Egypt’s efforts to enhance climate action through the national platform of the “NWFE” Programme, which has become a leading platform regionally and globally, and is cited in international reports as one of the platforms that integrates project design, implementation, and financing, through coordination among the government, development partners, international institutions, and the private sector.

 

She affirmed that the progress achieved in the renewable energy sector since the launch of the programme has contributed to promoting the significant opportunities Egypt possesses in renewable energy, and has strengthened the country’s ability to achieve its target of generating 42% of energy from renewable sources. She referred to the recent inauguration of the Obelisk project, one of the largest renewable energy projects.

 

She explained that the “NWFE” platform, launched in 2022 to accelerate the implementation of the National Climate Change Strategy 2050 and the updated Nationally Determined Contributions, and to move from pledges to actual implementation, relies on blended finance mechanisms by combining public, private, and concessional financing, alongside technical support and multi-sector partnerships.

 

She added that the programme has contributed to increasing investor appetite in the renewable energy sector, and has succeeded in mobilizing financing worth USD 4.5 billion for clean energy projects, aimed at accelerating the implementation of solar and wind energy projects led by the private sector, with a total implemented capacity of 5.2 GW, while the total capacity for which power purchase agreements have been signed reached 8.25 GW, out of a total target of 10 GW under the programme.

 

She noted that, to date, 1.3 GW of conventional thermal power plants have been decommissioned out of a total target of 5 GW, in addition to strengthening electricity grid infrastructure, supported by concessional financing worth EUR 367 million, to ensure grid readiness for power transmission and system stability.

 

On another note, H.E. Dr. Rania Al-Mashat confirmed that Egypt has been able to leverage debt-for-development swap mechanisms with bilateral partners, represented by Italy and Germany, to enhance climate investments, particularly in the energy sector under the “NWFE” Programme, and to implement projects across several development sectors. She pointed out that the Ministry is working with the European Union and the World Bank to expand investment guarantees for the private sector, enabling additional financing mechanisms.

 

The session was attended by Chevalier Frederick Tsao, Chairman of the Tsao Pao Chee Group; Ray Dalio, Founder of the Dalio Family Office; and Justin Mundy, Head of the Centre for Sustainable Sovereign Debt. The session was moderated by Sebastian Buckup, Managing Director of the World Economic Forum, and was opened by André Hoffmann, Vice Chairman of Roche Holding and Co-Chair of the World Economic Forum.