The first tranche (USD 65,8 million) of the climate finance fund under the Egypt Renewable Energy Financing Framework was transferred to the Green Climate Fund (GCF) in order to support the country’s transition to a low-carbon economy. In line with the Sustainable Energy Strategy, Egypt seeks to meet its target of 20% renewable energy shares in total energy consumption, including wind, hydro and solar power, by 2020.

Egypt’s efforts will be financially supported by the Green Climate Fund, and the European Bank for Reconstruction and Development (EBRD). In particular, the project is financed via loans (up to USD 150 million from the GCF and up to USD 350 million from the EBRD) and grants, which aim to leverage debt financing from international and development financial institutions, as well as commercial banks and private sector investors. The project will cover technical assistance to enhance renewable energy integration into grid, and setting up of an appropriate legal framework, as well as climate finance to scale up development of energy projects.

The Framework was approved by Green Climate Fund’s Board in April 2017. From the sustainable development perspective, the project seeks to contribute to the achievement of Sustainable Development Goal 7 “Affordable and Clean Energy”.

The gLAWcal Team