Egypt’s National Initiative for Smart Green Projects (NISGP) is a prime example of how local climate financing and solutions can address climate challenges while fostering sustainable development, reported the World Economic Forum.
Launched by the Egyptian government in 2022, NISGP aims to tackle the challenges of climate finance by sourcing a pipeline of investable local projects and facilitating financing arrangements. The initiative focuses on mobilizing private sector investment to support climate solutions across Egypt’s 27 governorates.
Key Features of NISGP:
The initiative’s approach is rooted in localization, ensuring that projects reflect the specific climate-related needs of each governorate. NISGP called for project submissions across six categories: large-scale, medium-scale, small-scale, start-ups, non-profit initiatives, and women-led projects. Projects are evaluated based on six primary criteria:
- Green component (environmental sustainability)
- Smart component
- Economic feasibility
- Replicability
- Sustainable impact
- Inclusion
Since its launch, NISGP has received over 17,000 applications across its three iterations. The projects are leveraging the comparative advantages of each region to create tailored solutions.
Successful Projects in Mitigation and Adaptation:
NISGP-funded projects have showcased a variety of successful mitigation and adaptation models, each relevant to Egypt’s unique geography and climate risks, including arid regions, coastal zones, agricultural areas, and more.
- Water Treatment in New Valley: A project developed a cost-effective, nature-based water treatment substance, reducing treatment costs by 80%. This innovation addresses the challenge of high iron concentrations in groundwater, which is the primary source of freshwater in the highly arid New Valley governorate.
- AI-Powered Pest Control in Dakahlia: Dakahlia, an agriculture-centered governorate in the Nile Delta, benefitted from an AI-driven pest control system designed to minimize pesticide use and optimize crop protection.
- Geothermal Energy in Ismailia: In Ismailia, a project utilized geothermal energy to eliminate carbon emissions from poultry farms, contributing to cleaner production methods and reducing reliance on traditional energy sources.
Multi-Stakeholder Collaboration:
NISGP’s success is partly due to the involvement of multiple stakeholders, including the Egyptian government, private and public banks, multilateral development banks, the UN system, and private sector partners. The initiative’s multi-stakeholder hub supports the development of a project pipeline, turning ideas into investable opportunities. Many projects have attracted investment and received technical assistance through successful partnerships with international stakeholders.
The Role of Financing and Scalability:
NISGP ensures that financing for climate action reaches the communities that need it most. By addressing localized challenges and ensuring that communities directly feel the benefits of these projects, the initiative promotes equitable development. It has set a strong precedent for integrating financial support into grassroots climate solutions.
The next iteration of the initiative will include a monitoring phase aimed at promoting the scalability of successful projects. This phase will ensure that the most impactful projects can be expanded and replicated across other regions, contributing to broader climate goals.
A Blueprint for Climate Finance:
NISGP exemplifies the importance of localized climate action that aligns with broader sustainability goals. It addresses urban-rural gaps, promotes knowledge sharing, and builds the capacity of local project proponents. NISGP’s approach has garnered international recognition from the World Economic Forum, which hailed it as one of the best sustainable practices in the Middle East and North Africa for its high impact, scalability, and contribution to global sustainability goals.
