The EBRD will support Egypt in the coordination of the energy pillar of its planned Nexus Water-Food-Energy initiative, to be launched at COP27.

Egypt has plentiful renewable energy resources and close to Europe and Asia, providing the potential to become a global hub for green fuels. It also aims to increase the share of renewable energy in its electricity mix to 42% by 2035.

The energy component of this plan will consist of retiring 5GW of inefficient fossil fuel capacity by 2025 and deploying 10 GW of solar and wind energy by 2028. Using $500 million of technical assistance, grants and loans to implement a just transition and support for absorption of renewable capacity, NWFE-EP is expected to mobilise $10bn in private investments.

Together with other multilateral development banks (MDBs), the EBRD plays a leading role in helping to decarbonise economies and enable the transition to a more sustainable future – focusing on private sector involvement to tackle climate change – operating across central and eastern Europe, Central Asia, and the southern and eastern Mediterranean (SEMED).

Plans were released over the summer for a large-scale green hydrogen facility within the Suez Canal Economic Zone which aims to turn Egypt into a global green energy hub.

Read more:  Egypt wants to become global green hydrogen centre

Scatec and Fertiglobe unveiled plans last October for a 50MW-100MW hydrogen facility in Ain Sokhna – and the duo want it to be operational in 2024. The Ain Sokhna Industrial Zone has also been marked for its green hydrogen and ammonia potential.

Read more:  Hydrogen plant plans for Egypt

EBRD President Odile Renaud-Basso, who leads the Bank’s delegation, said countries pursuing low-carbon pathways can “count on EBRD’s unwavering support”.

She added: “The low carbon transition is an economic and social opportunity, not simply a cost to be borne. A low carbon economy has cleaner air and water, and cheaper, more secure and less volatile energy. It also presents big new opportunities for employment and economic growth, whether in minerals, clean fuels or new products.”

Last year’s COP26 in Glasgow, Scotland represented a step change in the global level of ambition. Major economies have committed to reach the goal of net zero emissions by mid-century – some 90% of global emissions are now covered by such commitments – and Glasgow saw growing engagement from the private sector, vital to boost investments to levels needed to reach the Paris Agreement temperature goals.

With climate change hitting hard, especially in the developing world, finance for adapting to climate change will be high on the November agenda, particularly since this is a COP (Conference of the Parties) on the African continent. Another priority will be delivery on pledges made to date.

Harry Boyd-Carpenter, the EBRD’s Managing Director, Climate Strategy and Delivery, said, “The EBRD is ready to support its countries of operation in replicating similarly ambitious transition platforms in the energy and other high-carbon sectors.”

The EBRD’s work on systemic reform to improve the environment for green investment is helping attract the private-sector investors who hold the key to the trillions in private investment needed to bring about a successful green economic transition.

By helping countries formulate climate strategies, supporting innovative financial instruments in capital markets, regulatory frameworks like renewable energy auctions, and the implementation of carbon pricing instruments, the EBRD is on track to double its own mobilisation of private-sector climate finance by 2025, as it pledged at COP26.

As well as working with countries of operation on Nationally Determined Contributions and Long-Term Strategies, which send clear signals to corporations about their climate vision, the EBRD is increasing its work with corporates on transforming their understanding of climate risks and opportunities.

For financial institutions, corporate and municipal clients, the EBRD is rolling out a Corporate Climate Governance (CCG) programme to help clients assess, manage and incorporate climate information into their governance, strategy and risk management structures.

Last year, developed countries pledged at Glasgow to at least double the 2019 climate adaptation finance of $20bn to developing countries by 2025.

The EBRD will set out how it will play its part in increasing both the finance and the policy support it will provide to help its countries of operations adapt to climate resilience, including launching an EBRD Climate Adaptation Action Plan at COP27.

The EBRD is chair of the climate heads’ group of MDBs which work together to publish an annual Joint MDB Climate Finance Report. The latest report revealed record levels of climate finance in 2021. One key aim at the global climate meet is to highlight progress towards aligning all MDB work with the goals of the Paris Agreement.

The EBRD plans to be “fully Paris aligned” by January 1 2023 and aims to make at least 50% of its investments green by 2025.