E Co. supports GCF in development of Egypt Climate Investment Plan
10 November 2022, Category: All insights, Latest projects, News, Tags: adaptation, climate change, climate finance, COP27, Egypt Climate Investment Plan, Finance Day, Green Climate Fund, sustainable development
At Finance Day at COP27, the Government of Egypt, in collaboration with the Green Climate Fund (GCF), released their Climate Investment Plan (IP)—the first country to adopt such a plan. E Co. is delighted to have provided technical assistance to develop this plan, working in collaboration with the GCF and Egyptian national and international stakeholders to analyse what Egypt needs in terms of climate adaptation and mitigation, before crafting finance routes for the country to follow.
Egypt is showing commitment to the climate agenda through finalising the National Climate Change Strategy (NCCS 2050) to support its Sustainable Development Strategy (SDS) 2030. As highlighted in the NCCS 2050, the Government of Egypt (GoE) recognises that the country is vulnerable to adverse effects of climate change and hence the need for mobilising adequate resources to address them. This calls for an effective plan to guide investment in the field. Given the gravity of Egypt’s susceptibility, there is need to invest in adaptation and mitigation measures to enhance communities’ resilience, which was the primary reason for the development of the Climate Change Investment Plan for Egypt.
Irina Hauler, one of the Senior consultants here at E Co. was a part of the project team that worked on the IP, and had this to say about the adoption of the Plan:
“We were delighted to support the GCF in developing their first-ever climate
investment plan, which aims to shift the focus from looking at climate projects
on a project-by-project basis towards a systematic model for securing finance
for a country’s mitigation and adaptation priorities. We hope this investment
plan will become a flagship for other climate investment plans, both across the
continent of Africa and in the wider world.”
Egypt’s Climate Investment Plan
The primary objective of the IP is to strengthen the portfolio of climate change investments in Egypt via moving from a project-based approach to systems’ transition approach (as supported by the IPCC’s 6th Assessment Report) to addressing climate priorities. It represents a more holistic way of successfully securing finance for a country’s adaptation or mitigation projects, redirecting the focus of traditional climate investing, which previously relied on a case-by-case approach, to a systemic model. This new, systemic approach has several direct benefits:
● The IP approach moves away from using singular projects to secure the pledges of Nationally Determined Contributions (NDCs) and National Action Plans (NAPs), to projects that are fully systemic and integrated with one another.
● The approach also allows for full country ownership, as each plan is specifically designed in line with the climate priorities adopted by said nation and their specific needs.
On the announcement, Egyptian Prime minister H.E. Dr Mostafa Madbouly said:
“This plan is very important because it can pave the way for implementation,
the focus of COP27. Without a clear financial plan – for all the nice programmes
and projects – nothing will happen on the ground… I am looking forward to
seeing how we can engage more and more the private sector together with
governments, to finance climate change projects and to get tangible results
that can be implemented.”
Yannick Glemarec, GCF Executive director stated:
“This investment plan is an important step to move from planning to
implementation – to foster a paradigm shift towards low emission, climate
resilient development and to accelerate climate investment through
transformational planning, catalysing innovation, de-risking early investment
and greening financial systems. It is about turning planning into
transformative climate action in line with Egypt’s needs.”
The IP will guide the GoE to allocate budgetary resources based on corresponding requirements and ensure that the actions of the key priority areas are timely and sufficiently supported with resources to address climate change and its effects. This will support the economy and society of Egypt to develop to their full potential within a well-protected and sustainable environment, safeguarded from major climate change effects, and with responsibility towards present and future generations. It will provide a framework for monitoring, reporting and accounting for the resources allocated to the sector by clearly
providing strategic priorities and targets in the management of climate change.
E Co.’s team of consultants was uniquely placed to collaborate with the GCF on this work, utilising our experience as development project consultants to help craft an investment approach that worked for the specific needs of Egypt, taking into account their unique environmental issues and economic position, which was then appropriately communicated using E Co.’s communication team and unique skillset.
Discover more on COP27’s Finance Day
We were very happy to see the Government of Egypt’s unveiling of the Investment Plan at COP27’s Finance Day, but this isn’t the only interesting proceeding to occur. There were also important developments from the GCF-GEF Pavilion, investigating how to better invite the private sector to invest in climate adaptation projects and effectively de-risk their investments. Additionally, there was analysis on how to better deliver funding to nations across Africa, which is currently suffering from a lack of equitable funding allocation.
To read more about these topics, head to our article on Finance Day proceedings here.
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