The Environmental and Climate Investment Forum
Tuesday، 12 September 2023 - 12:00 AM
Under the auspices of President Abdel Fattah El-Sisi, President of the Republic, Dr. Mostafa Madbouly, Prime Minister, inaugurated the activities of the first edition of the Environmental and Climate Investment Forum, on September 12, 2023, in the New Administrative Capital, with the participation of a large number of ministers, officials, heads of various economic and oversight bodies, and leaders of major companies operating in diversified economic activities.
President Abdel Fattah El-Sisi’s sponsorship of the Environmental and Climate Investment Forum reflects the political leadership’s interest in the green investment file, in order to achieve sustainable livelihoods and preserve the rights of current and future generations.
The forum is organized in partnership with the United Nations Industrial Development Organization (UNIDO) through the "Inclusive Green Growth in Egypt" project, and is funded by the Swiss Agency for Development (SDC).
The forum comes in line with the country's directions to enhance the private sector's contribution to the economy, which will reflect on achieving sustainable economic development and providing more green job opportunities.
The forum aims to present a package of promising investment opportunities for the private sector in several areas, including sustainable energy, waste recycling, eco-tourism, the bio-based economy, sustainable agriculture and food production . This is in addition to identifying available investment opportunities, presenting visions and proposals for the growth of environmental investment.
In this respect, sectoral sessions will be held to raise awareness of the promising opportunities for young graduates and entrepreneurs in the field of climate change.
The Environmental and Climate Investment Forum is a continuation of Egypt's pioneering role in preserving the environment and adapting to climate change, and building on the results of the COP27 climate change summit to enhance partnership with the private sector, aiming to encourage them to provide more green investments to enhance Egypt's path towards green transformation, encouraging initiatives towards a better green future for Africa and the world as a whole, and completing the path towards the upcoming COP28 climate conference in the UAE.
The Environment and Climate Investment Forum will be organized annually to become the main event for presenting investment opportunities to the private sector to increase green investment.
The forum is held within the framework of the Ministry of Environment's keenness to achieve the goals of the sustainable development strategy (Egypt's Vision 2030) to protect natural resources, transform environmental challenges into investment opportunities, spread the concept of a circular green economy, and in line with the state's directions to enhance the private sector's contribution to the economy, which is reflected in achieving Sustainable economic development and providing more green job opportunities.
The Environment and Climate Investment Forum will be organized annually to become the main event for presenting investment opportunities to the private sector to increase green investment.
The forum comes within the framework of the Ministry of Environment’s keenness to achieve the goals of the sustainable development strategy (Egypt Vision 2030) to protect natural resources, transform environmental challenges into investment opportunities, and spread the concept of a circular green economy, in line with the state’s directions to enhance the private sector’s contribution to the economy, which reflects the achievement of Sustainable economic development and providing more green job opportunities
The environment file witnessed a great development in light of the political leadership’s support for all environmental issues, and sponsorship of environmental campaigns, including the “Get Ready for Green” campaign to raise environmental awareness.
This is in addition to This is in addition to the ratification by His Excellency President Abdel Fattah El-Sisi, President of the Republic, of the first law for waste management of all types in Egypt, which is based on the principle of the circular economy, extended responsibility for the producer, and a clear definition of roles and responsibilities, which regulates the mechanisms for involving the private sector in the system.
The Opening Session
Prime Minister Mostafa Madbouly inaugurated on Tuesday the first-ever Environmental and Climate Investment Forum in Egypt, heralding a new approach to green investment that links mitigation, adaptation, and climate financing.
In his speech at the opening session of the one-day event, Prime Minister Mostafa Madbouly said: "Egypt intends to leverage this forum to follow up on the outcomes of the Sharm El-Sheikh's COP27 while transforming them into practical steps for Egypt, African nations, and developing countries at large.”
He asserted that Egypt also aims to share its experiences and expertise during the COP28, to be held later this year in the UAE, and beyond.
The prime minister also announced the launch of an e-platform for environmental and climate investments, explaining that Egypt Environmental and Climate Investment Platform, which is an interactive electronic platform in English and Arabic languages, aims to link investors to business opportunities across Egypt in the field of green economy.These include opportunities in waste management, sustainable energy, eco-tourism, bio-based industries, agriculture, and food production.
He added that it will also provide market data, climate-related studies, and information about green financial facilities offered by leading banking institutions.
Additionally, the platform renders many initial economic feasibility studies and promising investment opportunities in waste management, sustainable energy, ecotourism, bio-based industries, agriculture and food production.
Egypt Platform is an integrated channel to provide market data, studies on climate and environment, and information on green financial facilities provided by leading banking institutions, in addition to current initiatives and projects. It facilitates direct communication with the Ministry of Environment, besides the Climate and Environmental Investment Unit (CLEIU), in order to enable investors and all parties to receive support and services for the development and deployment of climate and environment-related investments.
For her part, the Minister of Environment Yasmine Fouad said that the Environmental and Climate Investment Forum will be organized annually, to become the main event through which investment opportunities are presented to the private sector to increase the volume of green investment, explaining that the forum comes within the framework of the ministry's keenness to achieve the goals of Egypt Vision 2030, to protect natural resources, transform environmental challenges into investment opportunities, and spread the concept of a revolving green economy.
She highlighted that this comes as part of the State's directions to enhance the contribution of the private sector to the economy, which will be reflected in achieving sustainable economic development and providing more job opportunities.
She pointed out that as areas of environmental and climate investment, the forum will discuss the field of ecotourism and bioeconomy, as well as the efforts made by the Egyptian government in providing a conducive environment for investments in the fields of ecotourism, sustainable agri-food, bio-based industries, and other areas related to the environment and climate.
For her part, Yvonne Baumann, Swiss Ambassador to the Arab Republic of Egypt, expressed her gratitude for participating in the opening of the forum, which focuses on innovations and constructive thinking for future environmental issues, and support and promotion of green investment. She also thanked the Egyptian government for the image that emerged from the COP27 climate conference last year in Sharm. Sheikh, and the tireless efforts made by the Egyptian government in climate issues, determining development paths, and preparing the National Climate Change Strategy 2050 and the updated national contributions plan.
During the forum, Dr. Yasmin Fouad, the Minister of Environment, also showcased the 2050 National Climate Strategy, investment and innovation opportunities in the environmental sectors, and the environment-related support provided by the ministry.
The forum comprised six sessions, including one that focused on creating favorable conditions for climate and environmental investments in Egypt. During the session, high-level representatives from both the public and private sectors discussed policies, legislative and regulatory frameworks governing climate and environmental investments in Egypt, as well as the latest developments aimed at creating an investment-friendly environment to attract both local and foreign investments.
Dr. Hala Al-Saeed, Minister of Planning and Economic Development, participated in the same session entitled “Discussion session on “Investment climate and policies supporting environmental and climate investment in Egypt”, in which she reviewed the state’s efforts to integrate environmental and climate dimensions into sustainable development plans, as integrating environmental and climate dimensions into state plans to achieve sustainable development is a general trend for the state. A major goal of Egypt’s Vision 2023 (in its updated version), which included among its strategic goals, the goal of achieving an “integrated and sustainable ecosystem.”
In her speech, Al-Saeed pointed out that Egypt was the first country in the Middle East and North Africa to launch green bonds that focus on financing expenditures associated with environmentally friendly green projects. On the other hand, the major development initiatives implemented by the state support the country’s direction towards green transformation, most notably the Decent Life Initiative, which is a comprehensive development initiative that aims to create sustainable rural communities and bring about a qualitative shift in the lives of millions of Egyptians. The initiative covers all sustainable development goals, pointing to the launch of the “Green Village” initiative, which aims to rehabilitate the villages of the national project to develop the Egyptian countryside, “A Decent Life,” to be compatible with… The latest global environmental standards of the World Green Building Council, and obtaining the “Tarsheed” certificate for green communities, as the initiative comes within the framework of supporting the state’s efforts to transition to a green economy, and applying environmental sustainability standards in the Egyptian countryside, to reach sustainable rural communities, and “Fares” village was chosen “In Aswan Governorate, as the first green village in the Republic, according to clear standards, and presenting it as Egypt’s model at the Climate Change Conference (COP27), in cooperation with “E-Consult” Engineering and Environmental Consulting Company (project consultant), and the Egyptian Green Building Association “an independent evaluation body.” It is intended to qualify one village from each targeted center within the three stages of the initiative to serve as a model that can be circulated to a total of 175 villages.
Al-Saeed also reviewed the state’s efforts to stimulate private investment in the areas of green transformation, and at the forefront of these efforts is reforming the legislative and institutional environment in order to create an attractive climate for local and foreign investment and provide opportunities for investment partnerships that achieve the common interests of all parties (win-win), as Egypt is considered one of the promising destinations. For private investment, whether local or foreign, pointing to the implementation of the first phase of the National Program for Economic and Social Reform in November 2016. These efforts are also being complemented by supporting the business environment and enhancing the role of the private sector as one of the main axes of the National Program for Structural Reforms in Egypt that the state launched in April 2021. Through dialogue with experts and the private sector, the program aims to restructure the Egyptian economy to diversify the production structure by focusing on sectors of the real economy.
Al-Saeed referred to the “State Ownership Policy” document, which explains to investors the role of the state in various sectors as a regulator of economic activity according to market mechanisms, and how the state will exit from activities in which the private sector will assume the largest role, such as various industries and infrastructure in its broad sense, and includes health and education in addition to Traditional infrastructure and communications, as this document contributes to providing a fertile and stimulating environment for investment and development, and aims to increase local and foreign investments, and raise the efficiency and effectiveness of public investments. The golden license contained in the Investment Law has also been activated to ensure rapid dealings with investors as well as speedy implementation of projects, as the state grants… The golden license is granted with one approval (from the Council of Ministers) to establish, operate and manage projects in a period not exceeding 20 working days, as the Council of Ministers has already approved a large number of golden licenses during recent months.
Al-Saeed added that in confirmation of the state’s drive for investment, the Supreme Investment Council, which was held under the chairmanship of the President of the Republic on May 16, 2023, approved a number of decisive decisions in the investment file, which included a number of procedural facilities and the adoption of a package of incentives to support investment in a number of sectors and projects, including: Relates to supporting the agricultural, industrial, and energy sectors with regard to green hydrogen production.
Al-Saeed highlighted the establishment of the “National Council for Green Hydrogen and its Derivatives,” headed by the Prime Minister, to confirm the state’s commitment to stimulating investment in the field of green hydrogen and its derivatives, in line with the requirements of sustainable development and the state’s plans for economic and social development, and to ensure its competitiveness at the international and regional levels, as represented by The most prominent objectives of the Council are to follow up on the implementation of the National Green Hydrogen Strategy and propose updating it in light of international and national developments, as well as approving the necessary policies, plans and mechanisms to implement and update the strategy, coordinating between the ministries and concerned authorities, and proposing the necessary solutions to overcome obstacles to investment in the field of green hydrogen and its derivatives, in addition to reviewing Legislation, regulations and rules regulating the field of green hydrogen and its derivatives, and proposing their updating.
Al-Saeed pointed out that the Council of Ministers approved granting a number of tax incentives to investment projects in the electricity and renewable energy sector, represented by projects to produce, store and export green hydrogen and green ammonia, and the industrial sector, which includes manufacturing safe, environmentally friendly alternatives to single-use plastic products for the industrial sector. There are also a number of Monetary incentives and other financial facilities proposed to be provided for green hydrogen projects and its derivatives.
Al-Saeed discussed the role of the Sovereign Fund of Egypt in creating investment partnerships in the areas of green transformation, as the establishment of the Sovereign Fund of Egypt for Investment and Development in 2018 came as one of the mechanisms to strengthen partnerships with the local and foreign private sector, and it is considered the ideal partner for the private sector, as the Fund gives priority to investing in green projects. Especially green hydrogen projects. In light of the world’s trend to use green hydrogen as the “fuel of the future,” the Sovereign Fund of Egypt launched the first integrated plant to produce green hydrogen in Africa and emerging markets in partnership with a number of international companies (Vertiglobe, SCATEC, and Orascom Construction) last November during events COP27 Conference of the Parties hosted by Egypt in November 2022.
When all its stages are completed, the project will include electrolyzers with a capacity of 100 megawatts, powered by 260 megawatts of solar and wind energy sources. The factory will produce more than 15,000 tons of green hydrogen as a raw material to produce up to 90,000 tons of green ammonia annually in the owned ammonia factories. For Vertiglobe.
Al-Saeed added that 9 framework agreements were signed in the field of green hydrogen and green ammonia, at a total investment cost of $83 billion, with SCATEC, AMIA Power, the French EDF Renewables alliance, Zero Waste, the Total Energies alliance, Enar, and Fortescue Future Industries, the alliance of Renew Power, Elsewedy, Alfanar, and Globalec.
It is expected that these projects will contribute to achieving the goals of the National Green Hydrogen Strategy, noting that the Sovereign Fund of Egypt signed a memorandum of understanding with ACWA Power regarding a joint investment in a wind energy project worth $1.5 billion with a capacity of 1.1 gigawatts in the Gulf of Suez. By 2026, it is planned that the 1.1 gigawatt project in the Gulf of Suez region will supply energy to more than one million families and avoid 2.4 million tons of carbon dioxide emissions annually.
Al-Saeed added that the Sovereign Fund of Egypt also announced, with technical support from the Central Unit for Participation with the Private Sector of the Ministry of Finance, the pre-qualification of 17 consortia to invite them to participate in the competition to implement seawater desalination plant projects that will be offered to the private sector, and which will operate using energy sources. Renewable resources in a number of regions of the Republic within the framework of the first phase of the water desalination program in Egypt of the Ministry of Housing, Utilities and Urban Communities.
She confirmed that the Sovereign Fund of Egypt also approved the launch of the first Egyptian entity to invest in projects that issue carbon certificates, EgyCOP, and the Fund’s participation in this project is being studied. The launch of this project integrates with the state’s efforts towards developing the carbon market in Egypt, as the Egyptian Stock Exchange launched the first voluntary carbon market in Africa. On the sidelines of the COP2 conference, the Fund is also working to follow the best international practices in the process of rehabilitating old buildings, as the Tahrir Complex building and the former Ministry of Interior headquarters will be converted into multi-use buildings to be role models in applying the concept of voluntary reuse as well as the best standards to become green buildings in the heart of downtown.
The discussion session witnessed the participation of Eng. Tarek Tawfiq, President of the American Chamber of Commerce in Cairo, Mohamed Farid Saleh, Acting Chairman of the Board of Directors of the Financial Regulatory Authority, and Seung Zhou, Deputy Director-General and Director-General of the Technical Cooperation and Sustainable Industrial Development Directorate at UNIDO.
The forum also featured another session entitled "Overview of Key Investment Opportunities in Climate and Environment in Egypt," highlighting investment opportunities in climate and eco-friendly solutions in sectors such as sustainable agriculture, waste management, renewable energy, eco-tourism, and bio-based industries. These investment opportunities are characterized by profitability and broad positive social, economic, and environmental impacts. Market trends and business advantages will also be highlighted.
Furthermore, Dr. Yasmin Fouad, the Minister of Environment, participated in a session on "Climate and Environment Investments: A Financial Perspective" that discussed the importance of mitigating investment risks and incentivizing private investments from an environmental and climate standpoint, as well as from economic and social development perspectives. It showcased the products and financial services related to climate and environmental investments in Egypt offered by national and international financial institutions.
The forum also included an in-depth discussion of environmental investment sectors: waste management and sustainable energy. This session showcased the efforts of the Egyptian government to create an investment-friendly environment for waste management, waste-to-energy initiatives, and sustainable energy solutions. It also highlighted the latest programs and initiatives undertaken by international development partners in these sectors. Success stories of investment and ongoing investment opportunities from pioneering developers and small and emerging companies were also presented.
Egypt signs 3 MoU's in green investment during 1st Environment, Climate Investment Forum
Egypt’s Minister of Environment Yasmine Fouad witnessed the signing of three memoranda of understanding (MoUs) in the field of supporting green investments, as part of the activities of the Environmental and Climate Investment Forum, launched on Tuesday 12/9/2023in the New Administrative Capital.
The first MoU was signed between the Waste Management Regulatory Authority, the KIT Innovation Center, and the Green Building Materials Company for cooperation in the field of construction and demolition waste management. The minister of said that the protocol aims to support joint cooperation between all parties in the field of recycling construction and demolition waste and mining waste, and to work on implementing research in the field of sustainable building materials.
The second MoU was between the Arab Organisation for Industrialisation (AOI) and a group of German companies (INTEC Rubber Powder Co. and RECOM Patent & License Co.), to establish a tyre recycling company in Cairo.
RECOM is the licensor and patent holder of INTEC technology for producing rubber granule powder, while INTEC is the provider of the latest tire recycling technology. Fouad said that, according to the signed memorandum of understanding, the tripartite alliance intends to cooperate to establish a joint company in Cairo, with RECOM owning 30 per cent of the shares of this new company, and the name of the new company will be (AOI – INTEC Egypt), provided that the two parties agree on the legal form and capital share.
The third MoU is a joint cooperation agreement between Green Planet for Sustainable Environmental Solutions and the Emirati company ZERO CARBON Limited, which specializes in the field of enabling engineering and operation of scalable technological systems to remove carbon, through investment, design and implementation.