Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, emphasized that the announcement of the winners of the 3rd edition of the National Initiative for Smart Green Projects marks a pivotal moment in Egypt’s sustainable development journey. The Ministry of Planning, as the national coordinator for financing development affairs, has launched several initiatives, including Egypt’s integrated national financing strategy and the second progress report of the Country Platform for the NWFE Programme. These actions contribute to Egypt’s preparation for the upcoming 4th International Conference on Financing for Development in Spain, in June 2025, where global strategies will be shaped to address international development challenges and strengthen the global financial system.
Al-Mashat’s remarks were made during her speech at the National Conference to announce the winners of the National Initiative for Smart Green Projects, which was held under the patronage of Prime Minister Mostafa Madbouly. Also present were key figures such as Yasmine Fouad, Minister of Environment; Manal Awad, Minister of Local Development; Mahmoud Mohieldin, UN Special Envoy on Financing the 2030 Sustainable Development Agenda; Elena Panova, UN Resident Coordinator in Egypt; and Alessandro Fracassetti, UNDP Resident Representative in Egypt, among other national officials, development partners, and representatives from the winning companies involved in the initiative.
In her speech, Al-Mashat expressed her gratitude to President Abdel Fattah El-Sisi for his steadfast patronage of the National Initiative for Smart Green Projects and his continuous support for the Ministry of Planning, Economic Development, and International Cooperation, as well as the ongoing efforts to transition Egypt to a green and sustainable economy. She also extended her thanks to Prime Minister Madbouly for his presence and unwavering support throughout this journey, particularly in launching initiatives and strategies that support Egypt’s broader development efforts.
The Global Landscape of Financing for Development and Climate Action
Al-Mashat discussed the significant challenges faced by countries worldwide, which contribute to exacerbating development gaps and increasing demand for financing. She pointed to the “High-Level Expert Group” report issued during the COP29 climate conference in Azerbaijan, which indicates that green financing must increase to $6.3trn annually by 2030. The report also highlights that developing and emerging countries alone will need $2.3trn annually in green investments to address climate challenges, requiring these nations to allocate 6.5% of their GDP to climate action by 2030.
Al-Mashat further emphasized that the cumulative impact of successive global crises has compounded challenges, narrowing fiscal space, and raising debt costs. These pressures confirm that overcoming these obstacles cannot fall on governments alone. She advocated for effective contributions from international financial institutions, the establishment of fair financing mechanisms, and the expansion of innovative tools like debt-for-climate swaps, which are essential for mobilizing private sector investments and alleviating fiscal burdens on emerging countries.
She also acknowledged the European Carbon Border Adjustment Mechanism (CBAM) as another significant challenge that emerging countries must address to maintain the competitiveness of their products and exports. Al-Mashat underscored the necessity of raising awareness and integrating development and climate action goals into national strategies. She called for localized approaches at the governorate level to foster local solutions and innovation, which would help advance climate action.
National Efforts in Climate Action and Development
Al-Mashat highlighted the national efforts Egypt has made in recent years, particularly since the country hosted COP27, to ensure that developing and emerging countries have a strong voice in global forums. Egypt has consistently advocated for equitable financing mechanisms that support climate action. The government has launched numerous national strategies and initiatives to transform climate commitments into practical solutions that bridge development gaps through various financing tools.
One of the most prominent steps taken by Egypt is the “Sharm El-Sheikh Guide to Just Financing,” a framework for applying the principles of just financing. This guide sets the foundation for ensuring that financing mechanisms are inclusive, sustainable, and fair, which is crucial for achieving climate and development goals.
The Country Platform for the NWFE Programme
Another significant achievement highlighted by Al-Mashat is the success of the country platform for the NWFE Programme, which has mobilized $4bn in private sector investments in just two years. These investments are dedicated to renewable energy projects that will generate 4.2 gigawatts of capacity. The NWFE Programme employs innovative financing tools, including debt swaps, grant platforms, and technical support, to mobilize resources. This initiative has gained significant international support from multilateral development banks and international financial institutions and is being considered as a model for other nations aiming to integrate climate and development efforts.
Al-Mashat emphasized that the Ministry of Planning, Economic Development, and International Cooperation continues to work on integrating environmental sustainability standards into Egypt’s national investment plans. The goal is to foster a low-emission economic growth trajectory by prioritizing green public investments and ensuring that future growth is environmentally sustainable.
Greening the National Investment Plan
Al-Mashat explained that one of the key mechanisms for achieving this goal is the “Environmental Sustainability Standards Guide,” which the Ministry has implemented in collaboration with national authorities. This guide has successfully increased the proportion of green projects within Egypt’s public investment plan, from 15% in 2020/2021 to 50% in the 2024/2025 fiscal year, with a target of raising that proportion to 55% in the next fiscal year. To ensure long-term sustainability, the Ministry, in partnership with the OECD, has launched a guide for preparing the general economic and social development plan, which integrates sustainability criteria into every project proposal. The plan aims to focus on policy quality, project feasibility, sustainability, and environmental impact assessments, with the goal of fostering green growth.
Additionally, starting in the 2026/2027 fiscal year, Egypt will implement a medium-term budget framework for the development of the national economic and social plan, in line with the new planning law. This will enhance long-term sustainability in public investments and help maximize the government’s efforts to green its economic activities.
National Structural Reform Programme
The transition to a green economy remains a cornerstone of Egypt’s National Structural Reform Programme, which includes key reforms in sectors like water, food, and energy. These measures aim to boost green investments and ensure that Egypt’s growth is sustainable. Al-Mashat noted that the International Monetary Fund (IMF) had approved a $1.3bn Resilience and Sustainability Facility for Egypt, designed to support the implementation of Egypt’s National Climate Change Strategy 2050. As part of this initiative, the first reform action was completed by adding two new mitigation and adaptation projects to the NWFE Programme’s country platform.
The Integrated National Financing Strategy for Development
Al-Mashat also pointed out that Egypt’s government has launched its Integrated National Financing Strategy for Development, which positions the country as one of only 86 globally to adopt such an approach. This strategy serves as a comprehensive framework for mobilizing financing for development through both domestic and international resources. It includes public and private sector funding, as well as foreign direct investments, to fill financing gaps and support development priorities in Egypt.
The National Initiative for Smart Green Projects
Al-Mashat concluded her remarks by highlighting the National Initiative for Smart Green Projects, which has received generous support from President Al-Sisi. She praised the initiative as a model of innovative partnerships, bringing together national entities, development partners, UN organizations, civil society organizations, and local authorities. The initiative encourages localizing climate action at the governorate level and has contributed to significant results, such as 5,700 project submissions for this year’s competition, with 354 projects selected at the governorate level.
Eighteen winning projects were honored for their successful implementation of innovative solutions, and they will have the opportunity to showcase their work at international events such as COP28 in the UAE and COP29 in Azerbaijan. The initiative has helped build youth capacity, enhanced local efforts to combat climate change, and improved the interaction between local authorities and environmental goals.
Supporting Climate Action through Other Initiatives
In conjunction with this, Al-Mashat noted the completion of a report on lessons learned from the Climatech Run international startup competition, which took place during the COP27 and COP28 climate conferences. This report, developed in cooperation with the UNDP, offers valuable insights for enhancing Egypt’s startup ecosystem and fostering greater climate innovation.
The Minister also highlighted the launch of the second edition of the Sustainable Development Goals (SDG) Localization Reports, prepared in collaboration with the UNDP. These reports track the progress of Egypt’s governorates in achieving the SDGs and provide data to guide informed decision-making, ensuring effective and evidence-based development efforts.
The Green Village Initiative
Finally, Al-Mashat celebrated the success of the “Green Village” initiative, which has seen the governorates of Gharbeya, Monoufeya, and the New Valley qualify three villages to meet global environmental standards and obtain the “Rationalization” certification for green rural communities. Egypt is one of the first countries in the Middle East and North Africa to adopt this approach, contributing to greening local investments.
In conclusion, Al-Mashat expressed appreciation to all participating project owners and commended the efforts of the national arbitration committee, led by Mahmoud Mohieldin, as well as the initiative’s team and various partner ministries for their dedication to making this initiative a success.
