Tuesday, May 6, 2025

Environment Min. Leads Third TFSC Board Meeting

Mona Yousef

Dr. Yasmin Fouad, Egypt’s Minister of Environment, chaired the third board meeting of the Financial Systems Transformation for Climate Project (TFSC), which took place at the Ministry’s headquarters. The meeting aimed to assess the project’s progress, review key outcomes from previous sessions, and provide a roadmap for the future, ensuring measurable and impactful environmental benefits.

Collaborative Efforts for Climate Finance and Adaptation

The meeting was attended by a range of distinguished figures, including Dr. Ali Abu Sena, the Executive Director of the Egyptian Environmental Affairs Agency, Clemens Vidal de Blach, Director of the French Development Agency (AFD), Alessandro Fracassetti, Resident Representative of the United Nations Development Programme (UNDP) in Egypt, Ambassador Tamer Mustafa from the Ministry of Foreign Affairs, Eng. Ahmed Abdel Rebeh, TFSC Project Manager, as well as representatives from the Ministry of International Cooperation and the Ministry of Planning and Economic Development.

In her opening remarks, Dr. Yasmin Fouad emphasized the critical importance of the TFSC project in advancing Egypt’s climate and environmental agenda. She highlighted the collaboration between multiple stakeholders, especially the Ministry of International Cooperation, the UNDP, and the French Development Agency, which are pivotal in driving the project’s implementation. Dr. Fouad expressed her satisfaction with overcoming previous challenges, affirming the importance of the project’s success in aligning with Egypt’s broader climate objectives.

Main Objectives of the TFSC Project

The core objective of the TFSC project is to strengthen Egypt’s climate finance system, particularly by developing a robust partnership with the banking sector. Dr. Fouad elaborated on the need for better differentiation between sustainable financing, climate financing, and the division between mitigation and adaptation measures. She stressed that, by leveraging UNDP’s expertise, Egypt aims to refine its climate finance mechanisms and ensure these initiatives are aligned with national and international climate goals.

A key component of the project is to transform climate adaptation projects into attractive opportunities for financial investment, similar to the way renewable energy projects have been successfully funded. This will help scale up climate resilience efforts in sectors vulnerable to climate change, particularly in water management and agriculture. Dr. Fouad emphasized the need for projects related to climate adaptation to receive the same level of financial support and attention as renewable energy projects, with the goal of making these initiatives bankable and scalable.

Next Steps for Climate Finance and Adaptation Projects

During the meeting, Dr. Fouad outlined the key steps moving forward, including identifying priority sectors for the project’s application. She discussed the potential of these initiatives to significantly reduce greenhouse gas emissions and support Egypt’s national climate contributions. The discussions also touched on the French Development Agency’s loan to the Commercial International Bank (CIB) to implement climate projects and the technical support provided to banks to ensure the successful implementation of these projects.

The Minister stressed that it is crucial for the TFSC project to expand its focus beyond renewable energy financing. The project must also incorporate adaptation strategies into the broader climate financing landscape. This involves not only reducing vulnerability to climate impacts but also fostering long-term resilience. Dr. Fouad emphasized that the shift toward adaptation projects requires creating a supportive ecosystem that encourages financial institutions to engage with climate adaptation initiatives. In this regard, the Ministry of Environment, alongside the TFSC project team, will develop a technical working group to create the necessary criteria and national adaptation plans to facilitate such projects.

Monitoring and Reporting Mechanisms (MRV)

The Minister also highlighted the ongoing efforts to establish robust climate monitoring and reporting systems (MRV) within Egyptian banks. These systems, developed in cooperation with various ministries, are designed to enhance transparency, track the progress of climate-related initiatives, and ensure the effective deployment of resources. Dr. Fouad emphasized the importance of scaling up these capabilities as part of Egypt’s commitment to international climate transparency frameworks.

Additionally, Dr. Fouad called on project representatives to participate in a national workshop in May 2024, which will focus on building a climate finance system in Egypt and the roadmap leading up to COP29. This workshop will be an important opportunity for stakeholders to present their experiences and share best practices in developing a sustainable and effective climate finance structure.

Alessandro Fracassetti, the UNDP Resident Representative in Egypt, expressed his pride in the United Nations Development Programme (UNDP) for being part of a strong partnership with the Ministry of Environment and the French Development Agency (AFD). This collaboration represents a shared commitment to climate action, with a focus on achieving significant climate goals. Fracassetti emphasized that the project plays a pivotal role in raising national awareness about environmental and climate issues.

Project Objectives

The core objectives of the project are to increase financial investments in climate-related actions in Egypt and to strengthen the country’s capacity to meet its commitments under the United Nations Framework Convention on Climate Change (UNFCCC). Key actions also include establishing a robust monitoring, reporting, and verification (MRV) system within the Ministry of Environment and coordinating with national stakeholders, including executive ministries, to ensure effective and sustainable operations. The project aims to enhance the ability of local financial institutions to assess and address the opportunities and challenges posed by climate-related projects.

Project Progress

During the meeting, progress achieved through the project’s action plan was presented. Among the key results discussed were efforts to monitor and enhance Egypt’s national climate policy through the development of climate change units (CCUs) and the implementation of the MRV system. The project has also worked on preparing a high-level framework document, which will guide the development of the MRV design report. This report will detail the guidelines, protocols, and methodologies for data collection, reporting, and verification processes.

The project is focused on creating a detailed report that outlines the roles and responsibilities, operational standards, and capacity-building plans required to implement the MRV system effectively. A capacity-building program was launched, which included awareness-raising workshops on climate change units for the relevant ministries. Furthermore, the project worked on designing the national MRV system framework and addressing gaps within existing climate change units while assessing their needs for improvement.

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