EBRD and Green Climate Fund boost Egypt’s green energy project
Power Engineering Int
The European Bank for Reconstruction and Development (EBRD) and Green Climate Fund (GCF) are to provide a major contribution to a $1bn renewable energy project in Egypt. The funding feeds into the government’s Sustainable Energy Strategy, which aims to source 20 per cent of Egypt’s energy from low emissions renewables by 2022.
The financing will allow independent power producers to invest in the first wave of private renewable energy production in Egypt. The EBRD is providing $352.3m while GCF is making a contribution of $154.7m. Additional financing from sponsors and other co-financiers will bring the total investment in new private renewable energy generation in Egypt to $1bn.
GCF Executive Director Howard Bamsey said that the GCF Board has already approved three diverse projects proposed by the EBRD in addition to the Egypt initiative. These include a hydropower project in Tajikistan; a water conservation project in Morocco; and a sustainable energy project covering 10 countries.
EBRD President Sir Suma Chakrabarti said that this initiative, the nearest to implementation among the GCF-approved EBRD projects, underscores the very productive cooperation between the two organisations. “Climate finance is crucial to the EBRD’s strategy. We are aiming to dedicate 40 per cent of our annual investments to the green economy by 2020,” he said, referring to the EBRD’s Green Economy Transition policy, launched in 2015.
Sir Suma heralded the rising prominence of the private sector as a major driving force in the current creation of a global green economy, including climate finance. “There are various financial instruments that are now coming into play,” he said. “These are making the private sector become increasingly interested in climate finance.” The Green Climate Fund was established in 2010 to finance climate change projects and programmes that help developing countries adapt to climate impacts and reduce greenhouse gas emissions. It is the largest global fund with the ability to leverage the private sector in tackling climate change.