In a significant step towards implementing Egypt’s 2050 National Climate Change Strategy, the International Monetary Fund (IMF) has approved a new loan for Egypt amounting to $1.3 billion. This funding, provided under the IMF’s Resilience and Sustainability Trust, aims to support a package of structural reforms designed to accelerate Egypt’s efforts in combating climate change, particularly in line with the country’s Nationally Determined Contributions (NDCs) for 2030.
The Ministry of Finance and the Ministry of Environment jointly confirmed that this loan will play a pivotal role in advancing Egypt’s climate agenda, which has been developed in close coordination between various ministries and governmental entities. The strategic plan, which also involves the Central Bank of Egypt, Egypt’s Ambassador to Vienna, and senior officials from the Ministry of Foreign Affairs, was created in partnership with the Ministries of Finance, Planning and Economic Development, International Cooperation, Environment, Petroleum, Electricity, Water Resources and Irrigation, and the Cabinet’s Decision Support and Information Center.
The structural reform package, as outlined by the two ministries, consists of ten key reforms across four primary areas:
- Accelerating Carbon Reduction: Enhancing efforts to decrease carbon emissions across Egypt’s economy.
- Climate Financial Risk Analysis: Conducting comprehensive assessments of financial risks associated with climate change.
- Strengthening Climate Data Management: Improving the collection and management of climate-related data and risks.
- Building Adaptation Capacity: Fostering the resilience of Egypt’s infrastructure, systems, and communities to adapt to climate impacts.
- Enhancing Financial Sector Resilience: Ensuring the financial sector is equipped to respond to climate challenges and supports green finance.
- Measuring and Disclosing Climate Impacts: Establishing frameworks for measuring, reporting, and disclosing the climate impacts of investments, projects, and policies.
The joint statement highlighted that through extensive cooperation between the Ministry of Finance, Ministry of Environment, Central Bank of Egypt, and a range of other government bodies, Egypt successfully secured this funding to support its climate goals. This support will bolster Egypt’s commitments under the Paris Agreement, especially in its journey toward a fair and just green transition. The reform package is expected to fortify Egypt’s position ahead of the upcoming COP30 climate conference and will serve as a key component in the country’s strategy to meet its climate objectives.
The approval of the $1.3 billion funding underscores Egypt’s proactive approach to addressing climate change as an existential issue and its central role in international climate negotiations. The collaboration between national stakeholders and international partners demonstrates the country’s ongoing commitment to environmental sustainability and its significant role in global multilateral cooperation on climate issues.
This financial support will enable Egypt to not only implement essential reforms but also make substantial progress toward its climate goals, ensuring a greener, more sustainable future for the nation and the planet.
