Egypt is positioning itself to harness economic growth through climate action, aiming to transform its cities into resilient centers that attract investment and enhance the quality of life. This approach also seeks to optimize natural resource allocation, mitigate climate change impacts, and boost Egypt's competitiveness globally.
Without sustained climate efforts, projections indicate a potential GDP loss of 2% to 6% by 2060. In 2017, air pollution alone accounted for approximately 1.4% of Egypt’s GDP in health costs.
The country has initiated several measures against climate change. In May 2022, Egypt introduced its first National Climate Change Strategy 2050 with projects targeted for completion by 2030. The second update to the Nationally Determined Contribution aims for a renewable energy mix of 42% by 2030.
The Country Platform for the Nexus of Water, Food, and Energy (NWFE) addresses interdependence among these sectors. It focuses on nine priority projects selected from the National Climate Change Strategy with plans for sustainable transportation projects later.
"Egypt’s ambitious plans to transition to a low-carbon economy require significant efforts," stated Dalia Sakr, Founder & CEO of SHiFTERRA Consultancy. "Despite ongoing efforts, global temperature increases could be catastrophic, particularly for the Nile Delta."
The FY24 national budget proposes increasing green public investments to 50% by FY25 from an estimated 40% in FY24. Initiatives like 'Decent Life' and 'Green Village' aim at sustainability in rural areas.
Encouraging private sector involvement in the green transition is a priority. The government approved a National Low-Carbon Hydrogen Strategy in 2023 and launched a National Council for Green Hydrogen in 2024.
Building resilience is crucial in vulnerable areas like Alexandria's coastal governorate due to rising sea levels. Implementing robust stormwater management systems can prevent significant economic losses.
Reducing carbon intensity can enhance Egyptian products' competitiveness as markets adopt stricter carbon standards like the European Union’s Carbon Border Adjustment Mechanism.
The World Bank Group supports Egypt's climate initiatives through technical assistance, financing, and policy advice. The CCDR report guides national efforts toward private sector participation in the green economy.
A recent development policy financing package from the World Bank Group backs essential components of Egypt’s climate-smart policy including water management regulations and emissions monitoring systems.
Investing in climate resilience allows Egypt to leverage renewable energy and sustainable practices for economic development while protecting infrastructure and food security.