$1 Billion Concessional Financing for Egypt
Egypt Selected Among 7 Countries to Benefit from $1 Billion Concessional Financing
Egypt's Minister of Planning, Economic Development, and International Cooperation, Dr. Rania Al-Mashat, announced that Egypt has been selected among seven countries out of 26 that have applied to benefit from the Climate Investment Fund's (CIF) Industrial Emissions Reduction Program (IERP).
This program is the first global concessional financing initiative dedicated to reducing harmful emissions from the industrial sector in developing countries, with a total value of $1 billion. Al-Mashat explained in a statement that the Ministry of Planning, Economic Development, and International Cooperation submitted Egypt's application, in cooperation with the European Bank for Reconstruction and Development, the World Bank, the International Finance Corporation, and
the African Development Bank, to benefit from the program. This application is based on Egypt's ambitious vision for transitioning to a green economy and reducing emissions, its institutional capabilities, and the effective participation of the local and foreign private sector, particularly through development financing.
She added that Egypt's selection among the seven countries confirms the international community's confidence in national strategies and efforts to promote climate action. The selection is also an important step toward enhancing the competitiveness of the Egyptian economy and attracting more climate investments. She noted that Egypt is working to integrate national policies and development goals with climate objectives, and aims to move forward with implementing policies that stimulate the green transformation in cooperation with international institutions.
The Climate Investment Fund (CIF) stated that seven countries (Egypt, Brazil, Mexico, Namibia, South Africa, Turkey, and Uzbekistan) were selected based on an assessment by an independent panel of experts. The program aims to support low-emission industrial transformation and create green jobs, enhancing the long-term economic competitiveness of participating countries and positioning them to benefit from the global market for climate-friendly goods, expected to reach $2 trillion by 2030.
This program is part of the CIF's Clean Technology Fund (CTF), which has a total value of $9 billion and relies on the fund's capital markets mechanism, the first of its kind in mobilizing private capital to support countries' sustainable, inclusive, and resilient development priorities.
"The global competition to decarbonize industrial sectors has begun, and emerging markets are at the forefront," said Tarye Gbadegesen, CEO of the Climate Investment Fund (CIF). "Industrial decarbonization is not just about reducing emissions; it's also about securing long-term prosperity and future jobs. It's also essential for producing the low-carbon industrial inputs the world urgently needs to expand renewable energy capacity and drive the global economy."
The seven selected countries will collaborate with development banks and private sector partners to develop investment plans that will be presented to the Fund's Board for approval. These plans will enable countries to access highly concessional financing to scale up clean technologies, such as green hydrogen, and low-carbon industries to achieve the global energy transition.
The program enables developing countries to access concessional financing, attract investment for climate transformation projects, and create green jobs. It is part of the Climate Investment Fund's (CIF) $9 billion Clean Technology Fund (CTF), which relies on the fund's capital markets mechanism, the first of its kind to mobilize private capital to support countries' sustainable, inclusive, and resilient development priorities. Every dollar invested by the CTF generates $12 in additional financing.
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