Egypt's progressive steps in Climate finance file
Actually, The world will not be able to avoid dangerous levels of climate change without a significant increase in investment, especially in developing countries, because many developing countries lack the resources and technology to do so, which is why all countries have agreed that industrialized countries must intensify and increase their financial support for climate action in developing countries.
So What is the volume of investment that the world needs to limit climate change?
Studies on climate investment revealed; That the world needs large investments in infrastructure from 2015 to 2030 by $90 tn.
As for the distributions across different sectors, these economies must collectively invest at least $1 tn in energy infrastructure by 2030 and $3 to $6 tn annually across various sectors by 2050 to face climate change by significantly reducing greenhouse gas emissions.
In addition to financing between $140 bn and $300 bn by 2030 to adapt to consequences of climate change on natural environment, such as sea level rise, this figure could rise to between $520 bn and $1.75 tn annually after 2050.
Among concerted efforts, developed countries have committed to mobilizing $100 bn annually by 2023, from a variety of sources, to meet mitigation and adaptation needs for developing countries.
now what about climate finance in Egypt ?
In fact, Egypt has taken many steps in climate finance file, the most prominent was the Ministry of Finance's initiative to integrate sustainability considerations into financing plans for the general budget, which led to issuance of first green bond in September 2020, becoming the first country in the Middle East and North Africa issues green bonds.
This type of bond witnessed a great demand, a five-year green bond was issued in $500 mn at an interest rate of 5.75%. However, with subscription exceeding the value of the bond sevenfold, the government worked to increase its total value to $750 mn, reduced the interest rate to 5.25%. It is also impressive that this type of bond witnessed participation of 16 new investors, which is an unprecedented number in bond issuances in US dollars.
