Latest News

Follow Us

Green economy.. What Egypt provided and what it benefited from

The transition towards a green economy currently represents a global trend, manifested in the growth of projects that do not pollute the environment, which is expected to reach 12 trillion dollars within 8 years, with the rise in the strength of the sector of investors and institutions working in such projects.

The green economy has begun to transform, in the last three years, from a theoretical direction in scientific studies to a profitable one in the real world, and currently accounts for about a third of the profits of the world’s 1,300 largest. It generates about $1.3 trillion in annual sales revenue in the United States. It also creates 9.5 million full-time jobs, aiming to improve human well-being and social equity, while reducing environmental risks. While at the field level, it directs its efforts towards income and employment growth through investments in the public and private sectors. while enhancing resource efficiency, reducing carbon emissions, waste and pollution, and preventing biodiversity loss and ecosystem degradation.

However, the shift towards this type of economy faces many obstacles at the international level, foremost of which is that it forces countries to abandon high-return economic activities that harm the environment. This is in addition to the imbalance it causes in the employment sector with regard to the employment of traditional sectors that have been active for decades.

The cost of applying environmental policies to obtain renewable energy is rising compared to conventional energy, as is the cost of research and development. While population growth and energy demand represent one of the most important obstacles, if we look at linking achieving green growth as a condition for developing countries to obtain aid, soft loans or debt relief. In addition to the lack of regulatory and financial incentives to generate clean energy in a sustainable manner.

Government plans and bonds
In Egypt, the government is betting on the green economy in achieving sustainable development, through a plan that includes raising the percentage of renewable energy to 42% of the energy mix. With attracting investments that do not pollute the environment, activating clean financing mechanisms, and mixed financing based on flexible partnerships between the government and private sectors, and multilateral partnerships.

The percentage of green public investments in Egypt reached 15% in the previous fiscal year. While the Ministry of Finance aims to increase it to 30% in the current budget, and 50% in the fiscal year 2024/2025, in an effort to improve Egypt’s competitiveness in the global environmental performance index.

According to Minister Mohamed Maait, there is a tendency to diversify the sources of financing investment projects, between dollar and green bonds and “Eurobonds.” This is accompanied by the issuance of sovereign and green sukuk. This contributes to reducing the costs of financing comprehensive and sustainable development. Hence the sustainability of public finance indicators.



Leave a Reply

Your email address will not be published. Required fields are marked *